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CLH vs. WCN: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Waste Removal Services sector might want to consider either Clean Harbors (CLH - Free Report) or Waste Connections (WCN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Clean Harbors is sporting a Zacks Rank of #2 (Buy), while Waste Connections has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CLH likely has seen a stronger improvement to its earnings outlook than WCN has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CLH currently has a forward P/E ratio of 31.48, while WCN has a forward P/E of 31.93. We also note that CLH has a PEG ratio of 1.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WCN currently has a PEG ratio of 3.33.
Another notable valuation metric for CLH is its P/B ratio of 5.64. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WCN has a P/B of 5.78.
These are just a few of the metrics contributing to CLH's Value grade of B and WCN's Value grade of C.
CLH is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CLH is likely the superior value option right now.
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CLH vs. WCN: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Waste Removal Services sector might want to consider either Clean Harbors (CLH - Free Report) or Waste Connections (WCN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Clean Harbors is sporting a Zacks Rank of #2 (Buy), while Waste Connections has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CLH likely has seen a stronger improvement to its earnings outlook than WCN has recently. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CLH currently has a forward P/E ratio of 31.48, while WCN has a forward P/E of 31.93. We also note that CLH has a PEG ratio of 1.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WCN currently has a PEG ratio of 3.33.
Another notable valuation metric for CLH is its P/B ratio of 5.64. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, WCN has a P/B of 5.78.
These are just a few of the metrics contributing to CLH's Value grade of B and WCN's Value grade of C.
CLH is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CLH is likely the superior value option right now.