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Why Clean Harbors (CLH) Shares Gained 25.1% in the Past Year?

·2 min read

Shares of Clean Harbors, Inc. CLH have rallied 25.1% in the past year, primarily on strong shareholder-friendly measures and capital investments.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Reasons for Upside

Clean Harbors continues to make capital investments to enhance its operational efficiency and comply with government and local regulations. The current regulatory requirements are cost-intensive and complicated for in-house disposal facilities, which in turn, compel most companies to outsource their hazardous waste disposal needs.  This is where CLH steps in with its suitable disposal firms in Canada and the United States.

Moreover, Clean Harbors has a diversified customer base ranging from Fortune 500 companies to midsize and, small public and private entities, providing it with stable and recurring revenue sources.

We are impressed with Clean Harbors’ consistent record of returning value to its shareholders through share repurchases. In 2021, 2020 and 2019, CLH had repurchased shares worth $54.4 million, $74.8 million and $21.4 million, respectively. Such moves vouch for CLH’s commitment to creating shareholder value and bolstering its confidence in business. These initiatives not only buoy investors’ optimism on the stock but also drive the earnings per share.

Favorable Estimate Revision

Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has moved 52.7% north to $6.78 in the past 60 days.

Zacks Rank and Other Stocks to Consider

Clean Harbors currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Investors interested in the broader Zacks Business Services sector can also consider some other top-ranked stocks like Avis Budget Group, Inc. CAR, Genpact Limited G and CRA International, Inc. CRAI.

Avis Budget sports a Zacks Rank of 1 at present. CAR has an earnings growth rate of 108.4% for 2022.

Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.

Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 12.3%.

Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.

CRA International flaunts a Zacks Rank of 1, currently. CRAI has a long-term earnings growth expectation of 14.3%.

CRAI delivered a trailing four-quarter earnings surprise of 26%, on average.


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