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Why Clean Harbors (CLH) Gained 32.8% in the Past 3 Months?

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Shares of Clean Harbors, Inc. (CLH - Free Report) have rallied 32.8% in the past three months compared with the industry’s growth of 1.4%, primarily on strong shareholder-friendly measures and capital investments.

Zacks Investment Research
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Reasons for Upside

Clean Harbors continues making capital investments to enhance its operational efficiency and comply with the government and local regulations. The current regulatory requirements are cost-intensive and complicated for in-house disposal facilities, which in turn, compel most companies to outsource their hazardous waste disposal needs.  This is where CLH steps in with its suitable disposal firms in Canada and the United States.

Moreover, Clean Harbors continues to focus on improving its efficiency and lowering its operating costs through advanced technology, process efficiencies and stringent cost management.

We are impressed with Clean Harbors’ consistent record of returning value to its shareholders through share repurchases. In 2021, 2020 and 2019, CLH had repurchased shares worth $54.4 million, $74.8 million and $21.4 million, respectively. Such moves vouch for its commitment to creating its shareholder value and bolstering its confidence in business. These initiatives not only buoy investors’ optimism on the stock but also drive the earnings per share.

Favorable Estimate Revision  

Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has moved 52.7% north to $6.78 in the past 60 days.  

Zacks Rank and Stocks to Consider

Clean Harbors currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks  Business Services sector are Broadridge Financial Solutions, Inc. (BR - Free Report) , Genpact Limited (G - Free Report) and Cross Country Healthcare, Inc. (CCRN - Free Report) .

Broadridge carries a Zacks Rank #2 (Buy) at present. BR’s current-year earnings and revenues are expected at 9.4% and 7.5%, respectively.

Broadridge delivered a trailing four-quarter earnings surprise of 4.1%, on average.

Genpact carries a Zacks Rank of 2 at present. G has a long-term earnings growth expectation of 12.2%.

Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.

Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 10%.

CCRN delivered a trailing four-quarter earnings surprise of 26%, on average.
 

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