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Covanta (CVA) Gains But Lags Market: What You Should Know

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Covanta (CVA) closed at $15.43 in the latest trading session, marking a +0.39% move from the prior day. The stock lagged the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 1.13%.

Heading into today, shares of the waste disposal and renewable energy company had gained 2.95% over the past month, outpacing the Oils-Energy sector's loss of 10.99% and trading in line with the S&P 500.

CVA will be looking to display strength as it nears its next earnings release, which is expected to be February 20, 2020. The company is expected to report EPS of $0.07, up 75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $478.87 million, down 4.23% from the year-ago period.

Any recent changes to analyst estimates for CVA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.45% higher. CVA is currently a Zacks Rank #2 (Buy).

The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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