Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Clean Harbors as such a stock due to the following factors:
- CLH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $40.1 million.
- CLH has traded 130,952 shares today.
- CLH is trading at 2.58 times the normal volume for the stock at this time of day.
- CLH is trading at a new low 4.01% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on CLH:
Clean Harbors, Inc. provides environmental, energy, and industrial services primarily in the United States, Puerto Rico, and Canada. Currently there are 5 analysts that rate Clean Harbors a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Clean Harbors has been 875,900 shares per day over the past 30 days. Clean Harbors has a market cap of $3.0 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.54 and a short float of 11.5% with 7.45 days to cover. Shares are down 16.7% year-to-date as of the close of trading on Friday.
rates Clean Harbors as a
. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- CLH, with its decline in revenue, underperformed when compared the industry average of 8.4%. Since the same quarter one year prior, revenues slightly dropped by 6.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Even though the current debt-to-equity ratio is 1.06, it is still below the industry average, suggesting that this level of debt is acceptable within the Commercial Services & Supplies industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.45 is sturdy.
- The share price of CLEAN HARBORS INC has not done very well: it is down 16.57% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Services & Supplies industry. The net income has significantly decreased by 363.9% when compared to the same quarter one year ago, falling from $35.36 million to -$93.34 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Commercial Services & Supplies industry and the overall market, CLEAN HARBORS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Clean Harbors Ratings Report.