Back to top

Here's Why You Should Buy Heritage-Crystal (HCCI) Stock Now

Read MoreHide Full Article

We believe that Heritage-Crystal Clean, Inc. (HCCI - Free Report) is a solid choice for investors, seeking exposure in the pollution control space. A diverse customer base, healthy prospects of Environmental Services and Oil Business segments, and other strategic initiatives for expanding businesses will be advantageous for the company.

The stock, with roughly $547.6 million market capitalization, was upgraded to a Zacks Rank #1 (Strong Buy) on Apr 4. Its investment appeal is further accentuated by a VGM Score of B.

Heritage-Crystal Clean delivered better-than-expected results in three of the last four quarters. Average earnings surprise was a positive 18.45%. Notably, its shares have rallied 3.5% in the last three months, outperforming 5.3% decline of the industry.

Why the Upgrade?

We are providing a snapshot of how Heritage-Crystal Clean fared in the fourth quarter of 2017. Its earnings of 26 cents surpassed the Zacks Consensus Estimate by 23.81%. Net sales were up 8.5% year over year on the back of healthy segmental performance of the Environmental Services and Oil Business segments.

We believe that a diverse customer base — primarily in vacuum services; industrial & hazardous waste; parts cleaning services; field services; anti-freeze; and used-oil services & used-oil re-refining markets — and an efficient management team add to Heritage-Crystal Clean’s appeal. Also, a large branch network — 86 branches at the end of 2017 — will help in carrying out operations smoothly for the company. Notably, it opened five new branches in the Environmental Services segment and also added resources (sales and services) with the latter anticipated generating revenues of $6 million in 2018. The company plans to open more branches and add resources in 2018, predicting revenue generation of $2.5 million from the latter.

Additionally, Heritage-Crystal Clean’s focus on expanding its operations through meaningful buyouts, enhancement in service offerings, more business in international arenas and growth in same-branch sales will work in its favor.

In the last 60 days, the company’s earnings estimates for 2018 was revised upward by four brokerage firms while that for 2019 by one firm. The Zacks Consensus Estimate currently stands at 92 cents per share for 2018 and $1.07 for 2019, reflecting an increase of 9.5% and 12.6%, respectively, from their tallies 60 days ago.

Also, the company has a positive Earnings ESP of 27.91% for the first-quarter of 2018 and 3.04% for 2018. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Heritage-Crystal Clean, Inc. Price, Consensus and EPS Surprise

Heritage-Crystal Clean, Inc. Price, Consensus and EPS Surprise | Heritage-Crystal Clean, Inc. Quote

Other Stocks to Consider

Some other top-ranked stocks in the Zacks Industrial Products sector worth considering are Advanced Emissions Solutions, Inc. (ADES - Free Report) , Vertex Energy, Inc. (VTNR - Free Report) and Superior Uniform Group, Inc. (SGC - Free Report) . While Advanced Emissions Solutions sports a Zacks Rank #1, both Vertex Energy and Superior Uniform Group carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the last 60 days, the bottom-line estimates for these three stocks improved for the current year. Also, Advanced Emissions Solutions delivered positive earnings surprise of 81.82% in the last quarter while Vertex Energy pulled off 33.33% and Superior Uniform Group delivered 31.03%.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

More from Zacks Analyst Blog

You May Like

Published in