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.
Clean Harbors Stock Gains 45% in a Year: What Should You Know?
Read MoreHide Full Article
Clean Harbors, Inc. (CLH - Free Report) had an impressive run in the past year. The company’s shares have gained 45% compared with the 28.7% rally of its industry and the 27.6% rise of the Zacks S&P 500 composite.
CLH’s revenues are anticipated to increase 9.2% year over year in 2024 and 5.8% in 2025. Its 2024 earnings are expected to grow 9.4% and the same for 2025 is estimated to rise 12%.
Clean Harbors’ Earnings Surprise Positive
CLH’searnings outpaced the Zacks Consensus Estimate in three of the past four quarters and missed once, delivering an earnings surprise of 3%, on average.
CLH’s Northward Estimate Revisions
Five estimates for 2024 have moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2024 earnings has moved up 2.4% in the past 60 days.
In the second quarter of 2024, the environmental services segment’s revenues increased 12% on a year-over-year basis. A significant portion of revenues in this segment was driven by HEPACO, which was acquired at the beginning of 2024. Management stated that the acquisition accounted for almost 50% of the entire top line and the remainder was a result of volume and pricing. CLH recorded 14% year-over-year growth in its technical services business. It was led by the record number of drum volumes collected. The Safety-Kleen segment witnessed an 11% year-over-year rise on the back of higher volumes. The rising demand for container waste removal resulted in this growth.
We are impressed with Clean Harbors’ consistent record of returning value to shareholders in the form of share repurchases. The company repurchased shares worth $51.2 million in 2023, $50.2 million in 2022 and $54.4 million in 2021. Such moves indicate its commitment to create value for shareholders and underline its confidence in its business. These initiatives not only instill investors’ confidence but also positively impact the bottom line.
CLH’s Liquidity Position is Robust
Clean Harbors liquidity remains strong, with a current ratio of 2.1 at the end of the second quarter of 2024. This is in contrast to the industry average of 0.93. A current ratio above 1 indicates that the company is well-positioned to meet its obligations. CLH's strong liquidity position enables it with the financial flexibility to capture growth opportunities and weather potential market changes.
Clean Harbors’ ROIC Appears Favorable
CLH has demonstrated effective investment in profitable areas, as reflected in its return on invested capital (ROIC). The company’s trailing 12-month ROIC is 9.1%, ahead of the industry average of 6.8%.
Clean Harbors, Inc. (CLH - Free Report) had an impressive run in the past year. The company’s shares have gained 45% compared with the 28.7% rally of its industry and the 27.6% rise of the Zacks S&P 500 composite.
CLH’s revenues are anticipated to increase 9.2% year over year in 2024 and 5.8% in 2025. Its 2024 earnings are expected to grow 9.4% and the same for 2025 is estimated to rise 12%.
Clean Harbors’ Earnings Surprise Positive
CLH’searnings outpaced the Zacks Consensus Estimate in three of the past four quarters and missed once, delivering an earnings surprise of 3%, on average.
CLH’s Northward Estimate Revisions
Five estimates for 2024 have moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2024 earnings has moved up 2.4% in the past 60 days.
Clean Harbors’ Q2 Segmental Performance Looks Strong
In the second quarter of 2024, the environmental services segment’s revenues increased 12% on a year-over-year basis. A significant portion of revenues in this segment was driven by HEPACO, which was acquired at the beginning of 2024. Management stated that the acquisition accounted for almost 50% of the entire top line and the remainder was a result of volume and pricing. CLH recorded 14% year-over-year growth in its technical services business. It was led by the record number of drum volumes collected. The Safety-Kleen segment witnessed an 11% year-over-year rise on the back of higher volumes. The rising demand for container waste removal resulted in this growth.
Clean Harbors, Inc. Revenue (Quarterly)
Clean Harbors, Inc. revenue-quarterly | Clean Harbors, Inc. Quote
CLH is a Consistent Dividend Player
We are impressed with Clean Harbors’ consistent record of returning value to shareholders in the form of share repurchases. The company repurchased shares worth $51.2 million in 2023, $50.2 million in 2022 and $54.4 million in 2021. Such moves indicate its commitment to create value for shareholders and underline its confidence in its business. These initiatives not only instill investors’ confidence but also positively impact the bottom line.
CLH’s Liquidity Position is Robust
Clean Harbors liquidity remains strong, with a current ratio of 2.1 at the end of the second quarter of 2024. This is in contrast to the industry average of 0.93. A current ratio above 1 indicates that the company is well-positioned to meet its obligations. CLH's strong liquidity position enables it with the financial flexibility to capture growth opportunities and weather potential market changes.
Clean Harbors’ ROIC Appears Favorable
CLH has demonstrated effective investment in profitable areas, as reflected in its return on invested capital (ROIC). The company’s trailing 12-month ROIC is 9.1%, ahead of the industry average of 6.8%.
Zacks Rank & Stocks to Consider
CLH carries a Zacks Rank #3 (Hold) at present.
Investors interested in the Zacks Business Services sector may also look at Climb Global Solutions, Inc. (CLMB - Free Report) and HNI (HNI - Free Report) .
Climb Global Solutions flaunts a Zacks Rank #1 (Strong Buy) at present. It has a long-term earnings growth expectation of 11%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CLMB delivered a trailing four-quarter earnings surprise of 25.2%, on average.
HNI currently sports a Zacks Rank #1. It has a long-term earnings growth expectation of 12%.
HNI delivered a trailing four-quarter earnings surprise of 51.3%, on average.