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Heritage-Crystal Clean (HCCI) Gains As Market Dips: What You Should Know

In the latest trading session, Heritage-Crystal Clean (HCCI) closed at $31.49, marking a +0.41% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq added 0.07%.

Heading into today, shares of the cleaning and waste-management company had lost 10.48% over the past month, lagging the Industrial Products sector's loss of 4.1% and the S&P 500's loss of 5.13% in that time.

Wall Street will be looking for positivity from Heritage-Crystal Clean as it approaches its next earnings report date. In that report, analysts expect Heritage-Crystal Clean to post earnings of $0.86 per share. This would mark year-over-year growth of 8.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $155.14 million, up 25.94% from the year-ago period.

HCCI's full-year Zacks Consensus Estimates are calling for earnings of $3.33 per share and revenue of $657.13 million. These results would represent year-over-year changes of +26.62% and +27.51%, respectively.

Any recent changes to analyst estimates for Heritage-Crystal Clean should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Heritage-Crystal Clean is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Heritage-Crystal Clean has a Forward P/E ratio of 9.41 right now. For comparison, its industry has an average Forward P/E of 23.54, which means Heritage-Crystal Clean is trading at a discount to the group.

We can also see that HCCI currently has a PEG ratio of 0.63. 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. The Pollution Control industry currently had an average PEG ratio of 1.27 as of yesterday's close.

The Pollution Control industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 10, which puts it in the top 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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