We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Covanta Holding's Focus on Technology Development Bodes Well
Read MoreHide Full Article
Covanta Holding Corporation’s focus on developing as well as commercializing new technology, systematic capital expenditures and development of total ash processing system are tailwinds.
The company has trailing four-quarter positive earnings surprise of 54.89% in the past four quarters. Long-term earnings growth of the company is pegged at 15%,
What’s Driving the Stock?
Over the past several years, Covanta Holding has been investing substantially to purchase property, plant and equipment. These expenditures were made to address infrastructural requirements and expand customer base for various capital projects. Moreover, the expenses were made to undertake acquisitions to curb competition, increase safety and reliability of its Energy-from-Waste (EfW) projects, provide solutions for solid waste and recyclable households besides hazardous wastes as well as modernize the system.
In 2019, the company invested $56 million in different growth projects. The company aims to invest nearly $35 million in different growth projects in 2020 to expand existing operations. This includes $10-million investments for strengthening international operations.
To lower long-term cost of ash disposal and become more sustainable while creating new revenue opportunities, the company has been developing its first total ash processing system (TAPS).
The company is also commercializing new technologies like recycling, alternative waste treatment processes, combustion controls, emission controls and residue recycling, reuse or disposal to develop existing operations. Covanta Holding is focused on preserving value of existing portfolio, expanding through project development and acquisitions in selected attractive markets as well as maintaining sustainability.
However, increased plant operating expenses, stringent laws and regulations in the United States and rising debt levels are headwinds for the company.
Shares of Covanta Holding have plunged 47.5% in the past 12 months compared with the industry’s decline of 43.3%.
Other Stocks to Consider
Few top-ranked stocks from the same sector are Evergy Inc. (EVRG - Free Report) , SolarEdge Technologies, Inc. (SEDG - Free Report) and BP Midstream Partners LP . SolarEdge Technologies sports a Zacks Rank #1, while SolarEdge Technologies and BP Midstream Partners hold a Zacks Rank #2.
Long-term earnings growth of Evergy, SolarEdge Technologies and BP Midstream Partners is pegged at 6.40%, 25% and 10%, respectively.
Evergy, SolarEdge Technologies and BP Midstream Partners have trailing four-quarter positive earnings surprise of 1.80%, 10.28% and 10.91%, on average, respectively.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Covanta Holding's Focus on Technology Development Bodes Well
Covanta Holding Corporation’s focus on developing as well as commercializing new technology, systematic capital expenditures and development of total ash processing system are tailwinds.
The company has trailing four-quarter positive earnings surprise of 54.89% in the past four quarters. Long-term earnings growth of the company is pegged at 15%,
What’s Driving the Stock?
Over the past several years, Covanta Holding has been investing substantially to purchase property, plant and equipment. These expenditures were made to address infrastructural requirements and expand customer base for various capital projects. Moreover, the expenses were made to undertake acquisitions to curb competition, increase safety and reliability of its Energy-from-Waste (EfW) projects, provide solutions for solid waste and recyclable households besides hazardous wastes as well as modernize the system.
In 2019, the company invested $56 million in different growth projects. The company aims to invest nearly $35 million in different growth projects in 2020 to expand existing operations. This includes $10-million investments for strengthening international operations.
To lower long-term cost of ash disposal and become more sustainable while creating new revenue opportunities, the company has been developing its first total ash processing system (TAPS).
The company is also commercializing new technologies like recycling, alternative waste treatment processes, combustion controls, emission controls and residue recycling, reuse or disposal to develop existing operations. Covanta Holding is focused on preserving value of existing portfolio, expanding through project development and acquisitions in selected attractive markets as well as maintaining sustainability.
However, increased plant operating expenses, stringent laws and regulations in the United States and rising debt levels are headwinds for the company.
Zacks Rank & Price Performance
The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Covanta Holding have plunged 47.5% in the past 12 months compared with the industry’s decline of 43.3%.
Other Stocks to Consider
Few top-ranked stocks from the same sector are Evergy Inc. (EVRG - Free Report) , SolarEdge Technologies, Inc. (SEDG - Free Report) and BP Midstream Partners LP . SolarEdge Technologies sports a Zacks Rank #1, while SolarEdge Technologies and BP Midstream Partners hold a Zacks Rank #2.
Long-term earnings growth of Evergy, SolarEdge Technologies and BP Midstream Partners is pegged at 6.40%, 25% and 10%, respectively.
Evergy, SolarEdge Technologies and BP Midstream Partners have trailing four-quarter positive earnings surprise of 1.80%, 10.28% and 10.91%, on average, respectively.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>