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Here's Why Investors Should Hold CLH Stock in Their Portfolios Now
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Key Takeaways
Clean Harbors sees 25-35% PFAS management growth, backed by EPA and DoD guidelines.
AI and robotic automation are aiding operations and have helped margins rise for 16 straight quarters.
CLH's liquidity is strong, but rising expenses, no dividend and fierce competition remain risks.
Shares of Clean Harbors (CLH - Free Report) have risen 24.4% over the past year, outperforming the industry’s 7.3% decline and the Zacks S&P 500 Composite's 24% rally.
The Zacks Consensus Estimate for 2026 revenues is 6.3 billion, hinting at 4.2% year-over-year growth. The same is expected to move up 4.7% in 2027. For EPS, the consensus mark for 2026 and 2027 is pinned at $8.5 and $9.4, respectively, suggesting year-over-year growth of 16.8% for 2026 and 10.6% for 2027.
Factors That Augur Well for CLH’s Success
PFAS Sales Pipeline Momentum: Clean Harbors’ management, in its first-quarter 2026 earnings call, stated accelerated growth of 25-35% for PFAS management, validated by EPA and DoD guidelines, supporting incineration and landfill disposal. CLH, being the only player providing a scalable, single-source end-to-end solution, dictates the pricing power. An advantage as such reads into solid revenue growth, high margins and lofty 34% growth in landfill volumes, providing investors grounds to protect themselves from macroeconomic setbacks.
AI-Backed Automation Raises Operational Prowess: The company incorporated AI and robotic process automation into varied operations, including waste classification, invoice auditing, ready-to-bill automation, field support tools and document processing. Embedding AI into the company’s activities supports revenue scalability while controlling costs. Interestingly, Michael Battles, the Co-CEO, during the first-quarter 2026 earnings call, stated that AI is partly a reason behind the company’s margins rising in 16 straight quarters. Investors can rely on tech-backed enhancements in operations, boosting profitability in the years to come.
Strong Liquidity: As of the end of the first quarter of 2026, Clean Harbors held $669 million in its cash chest against a $13-million current debt. While it signals a robust liquidity position, it is further solidified by the company’s current ratio of 2.34, significantly higher than its industry average of 1.08. The company holds a hefty sum of $2.8 billion as long-term debt, which appears risky. However, CLH’s times interest earned multiple is at 4.8X, suggesting effective interest payment that secures the company’s liquidity position.
Image Source: Zacks Investment Research
Optimistic Shareholder-Friendly Policies: CLH had share repurchases worth $51.1 million, $55.2 million and $250 million in 2023, 2024 and 2025, respectively. Such actions underscore the company’s confidence in business and help boost investors’ confidence in the stock by positively impacting earnings per share.
Risks Faced by Clean Harbors
Operational Cost Pressure: The proportion of selling, general and administrative expenses as a percentage of revenues moved up to 14.2% during the first quarter of 2026 from the year-ago quarter’s 7.8%. This jump can be attributed to higher incentive compensation and insurance costs. Management expects, the midpoint of its outlook, negative adjusted EBITDA to gain 3-6% from that reported in 2025. Despite strong pricing power, rising expenses can affect margins.
No Dividend Discourages Investors: CLH does not offer dividends; therefore, the only way investors can gain is through share price appreciation, which is not guaranteed. For income-seeking investors, the inability to obtain dividends is a major red flag.
Fierce Competition: Clean Harbors faces competition from both large national players and smaller regional firms. While CLH holds a significant position in the industry, intense competition lowers pricing power, heightens operational expenses and potentially reduces market share.
CLH’s Zacks Rank & Stocks to Consider
The company has a Zacks Rank #3 (Hold) at present.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why Investors Should Hold CLH Stock in Their Portfolios Now
Key Takeaways
Shares of Clean Harbors (CLH - Free Report) have risen 24.4% over the past year, outperforming the industry’s 7.3% decline and the Zacks S&P 500 Composite's 24% rally.
The Zacks Consensus Estimate for 2026 revenues is 6.3 billion, hinting at 4.2% year-over-year growth. The same is expected to move up 4.7% in 2027. For EPS, the consensus mark for 2026 and 2027 is pinned at $8.5 and $9.4, respectively, suggesting year-over-year growth of 16.8% for 2026 and 10.6% for 2027.
Factors That Augur Well for CLH’s Success
PFAS Sales Pipeline Momentum: Clean Harbors’ management, in its first-quarter 2026 earnings call, stated accelerated growth of 25-35% for PFAS management, validated by EPA and DoD guidelines, supporting incineration and landfill disposal. CLH, being the only player providing a scalable, single-source end-to-end solution, dictates the pricing power. An advantage as such reads into solid revenue growth, high margins and lofty 34% growth in landfill volumes, providing investors grounds to protect themselves from macroeconomic setbacks.
AI-Backed Automation Raises Operational Prowess: The company incorporated AI and robotic process automation into varied operations, including waste classification, invoice auditing, ready-to-bill automation, field support tools and document processing. Embedding AI into the company’s activities supports revenue scalability while controlling costs. Interestingly, Michael Battles, the Co-CEO, during the first-quarter 2026 earnings call, stated that AI is partly a reason behind the company’s margins rising in 16 straight quarters. Investors can rely on tech-backed enhancements in operations, boosting profitability in the years to come.
Strong Liquidity: As of the end of the first quarter of 2026, Clean Harbors held $669 million in its cash chest against a $13-million current debt. While it signals a robust liquidity position, it is further solidified by the company’s current ratio of 2.34, significantly higher than its industry average of 1.08. The company holds a hefty sum of $2.8 billion as long-term debt, which appears risky. However, CLH’s times interest earned multiple is at 4.8X, suggesting effective interest payment that secures the company’s liquidity position.
Optimistic Shareholder-Friendly Policies: CLH had share repurchases worth $51.1 million, $55.2 million and $250 million in 2023, 2024 and 2025, respectively. Such actions underscore the company’s confidence in business and help boost investors’ confidence in the stock by positively impacting earnings per share.
Risks Faced by Clean Harbors
Operational Cost Pressure: The proportion of selling, general and administrative expenses as a percentage of revenues moved up to 14.2% during the first quarter of 2026 from the year-ago quarter’s 7.8%. This jump can be attributed to higher incentive compensation and insurance costs. Management expects, the midpoint of its outlook, negative adjusted EBITDA to gain 3-6% from that reported in 2025. Despite strong pricing power, rising expenses can affect margins.
No Dividend Discourages Investors: CLH does not offer dividends; therefore, the only way investors can gain is through share price appreciation, which is not guaranteed. For income-seeking investors, the inability to obtain dividends is a major red flag.
Fierce Competition: Clean Harbors faces competition from both large national players and smaller regional firms. While CLH holds a significant position in the industry, intense competition lowers pricing power, heightens operational expenses and potentially reduces market share.
CLH’s Zacks Rank & Stocks to Consider
The company has a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader Zacks Business Services sector are Coherent Corp. (COHR - Free Report) and Veralto Corporation (VLTO - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy), respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Coherent has a long-term earnings growth expectation of 46.8%. COHR delivered a trailing four-quarter earnings surprise of 6.2%, on average.
Veralto has a long-term earnings growth expectation of 8.4%. VLTO delivered a trailing four-quarter earnings surprise of 4.9%, on average.