Heritage-Crystal Clean (HCCI) Soars 11.1%: Is Further Upside Left in the Stock?
Heritage-Crystal Clean (HCCI) shares rallied 11.1% in the last trading session to close at $46.60. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14% gain over the past four weeks.
The stock jumped following news that the company is set to be acquired by J.F. Lehman & Company (“JFLCO”) for $1.2 Billion. As part of the merger agreement, JFLCO will acquire all the outstanding shares of Crystal Clean for $45.50 per share in cash. The transaction value reflects a premium of approximately 24.9% to Crystal Clean’s 60-day volume-weighted average price on July 19, 2023. The transaction is expected to close in the fourth quarter of 2023, following which, Crystal Clean will become a privately held company.
This cleaning and waste-management company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of -43.3%. Revenues are expected to be $195.22 million, up 24.6% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Heritage-Crystal Clean, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HCCI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Heritage-Crystal Clean is part of the Zacks Pollution Control industry. Tetra Tech (TTEK), another stock in the same industry, closed the last trading session 1% higher at $171.89. TTEK has returned 3.8% in the past month.
Tetra's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.18. Compared to the company's year-ago EPS, this represents a change of +9.3%. Tetra currently boasts a Zacks Rank of #3 (Hold).
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Heritage-Crystal Clean, Inc. (HCCI) : Free Stock Analysis Report
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