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Covanta (CVA) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Covanta (CVA) closed at $15.10, marking a +0.8% move from the previous day. This change outpaced the S&P 500's 0.73% gain on the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 1.34%.

Heading into today, shares of the waste disposal and renewable energy company had gained 0.54% over the past month, outpacing the Oils-Energy sector's loss of 8.94% and the S&P 500's of 0% in that time.

CVA will be looking to display strength as it nears its next earnings release, which is expected to be February 20, 2020. On that day, CVA is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $478.87 million, down 4.23% from the year-ago period.

Investors might also notice recent changes to analyst estimates for CVA. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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

The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow CVA in the coming trading sessions, be sure to utilize Zacks.com.


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