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Here's Why You Should Hold Clean Harbors (CLH) Stock Now
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Clean Harbors, Inc. (CLH - Free Report) stock has rallied 37.3% in the past year, significantly outperforming the 2.4% growth of the industry it belongs to.
The company has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.
Clean Harbors continues to make capital investments to enhance its quality and comply with 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 Clean Harbors steps in with its suitable disposal firms in Canada and the United States.
The company has a diversified customer base ranging from Fortune 500 companies to midsize and small public and private entities, which provide it with stable and recurring sources of revenue. It has been chosen as an authorized vendor by large and small generators of waste as it has comprehensive waste disposal and waste tracking capabilities.
Clean Harbors has a consistent record of returning value to shareholders in the form of share repurchases. In 2022, 2021, 2020 and 2019, the company repurchased shares worth $50.2 million, $54.4 million, $74.8 million and $21.4 million, respectively. These initiatives not only instill investors’ confidence but also positively impact earnings per share.
Some Risks
Clean Harbors has been witnessing increasing selling, general and administrative expenses in the past years. The company has incurred $627.4 million in 2022 and $538 million in 2021, representing 19.3% and 16.6% year-over-year growth, respectively.
Clean Harbors' current ratio at the end of second-quarter 2023 was pegged at 2.02, lower than the 2.05 reported at the end of the prior quarter. A decline in the current ratio does not bode well.
Zacks Rank and Stocks to Consider
Clean Harbors currently carries a Zacks Rank #3 (Hold).
The following better-ranked stocks from the Business Services sector are worth consideration:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.71 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 8.4% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings predicts growth of 7.2% and 8.8%, respectively.
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Here's Why You Should Hold Clean Harbors (CLH) Stock Now
Clean Harbors, Inc. (CLH - Free Report) stock has rallied 37.3% in the past year, significantly outperforming the 2.4% growth of the industry it belongs to.
The company has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.
Clean Harbors, Inc. Price
Clean Harbors, Inc. price | Clean Harbors, Inc. Quote
Key Growth Drivers
Clean Harbors continues to make capital investments to enhance its quality and comply with 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 Clean Harbors steps in with its suitable disposal firms in Canada and the United States.
The company has a diversified customer base ranging from Fortune 500 companies to midsize and small public and private entities, which provide it with stable and recurring sources of revenue. It has been chosen as an authorized vendor by large and small generators of waste as it has comprehensive waste disposal and waste tracking capabilities.
Clean Harbors has a consistent record of returning value to shareholders in the form of share repurchases. In 2022, 2021, 2020 and 2019, the company repurchased shares worth $50.2 million, $54.4 million, $74.8 million and $21.4 million, respectively. These initiatives not only instill investors’ confidence but also positively impact earnings per share.
Some Risks
Clean Harbors has been witnessing increasing selling, general and administrative expenses in the past years. The company has incurred $627.4 million in 2022 and $538 million in 2021, representing 19.3% and 16.6% year-over-year growth, respectively.
Clean Harbors' current ratio at the end of second-quarter 2023 was pegged at 2.02, lower than the 2.05 reported at the end of the prior quarter. A decline in the current ratio does not bode well.
Zacks Rank and Stocks to Consider
Clean Harbors currently carries a Zacks Rank #3 (Hold).
The following better-ranked stocks from the Business Services sector are worth consideration:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.71 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 8.4% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings predicts growth of 7.2% and 8.8%, respectively.