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Clean Harbors (CLH) Gains But Lags Market: What You Should Know

Clean Harbors (CLH) closed at $117.10 in the latest trading session, marking a +1.8% move from the prior day. This move lagged the S&P 500's daily gain of 3.06%. At the same time, the Dow added 2.8%, and the tech-heavy Nasdaq gained 0.16%.

Prior to today's trading, shares of the environmental services company had lost 1.5% over the past month. This has was narrower than the Business Services sector's loss of 8.85% and the S&P 500's loss of 6.15% in that time.

Wall Street will be looking for positivity from Clean Harbors as it approaches its next earnings report date. The company is expected to report EPS of $1.91, up 67.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.29 billion, up 36.09% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.78 per share and revenue of $5.08 billion, which would represent changes of +86.26% and +33.43%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Clean Harbors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Clean Harbors is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Clean Harbors currently has a Forward P/E ratio of 16.97. For comparison, its industry has an average Forward P/E of 20, which means Clean Harbors is trading at a discount to the group.

The Waste Removal Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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