Clean Harbors Inc. (CLH): Today's Featured Materials & Construction Underperformer

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Clean Harbors ( CLH) pushed the Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Clean Harbors fell $1.21 (-2.1%) to $56.20 on light volume. Throughout the day, 442,363 shares of Clean Harbors exchanged hands as compared to its average daily volume of 735,300 shares. The stock ranged in price between $55.99-$56.87 after having opened the day at $56.86 as compared to the previous trading day's close of $57.41. Other companies within the Materials & Construction industry that declined today were: China Advanced Construction Materials Group ( CADC), down 11%, MagneGas Corporation ( MNGA), down 7.2%, Tri-Tech ( TRIT), down 6.1%, and Orion Marine Group ( ORN), down 4.2%.
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Clean Harbors, Inc., through its subsidiaries, provides environmental, energy, and industrial services in the United States, Puerto Rico, Canada, and internationally. It operates in four segments: Technical Services, Field Services, Industrial Services, and Oil and Gas Field Services. Clean Harbors has a market cap of $3.49 billion and is part of the industrial goods sector. The company has a P/E ratio of 24, above the S&P 500 P/E ratio of 17.7. Shares are up 4.4% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Clean Harbors a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Clean Harbors as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Comstock ( CHCI), up 8.8%, Gafisa ( GFA), up 8.5%, Eagle Materials ( EXP), up 6.9%, and Cemex S.A.B. de C.V ( CX), up 6.4%, were all gainers within the materials & construction industry with USG ( USG) being today's featured materials & construction industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the materials & construction industry could consider SPDR S&P Homebuilders ETF ( XHB) while those bearish on the materials & construction industry could consider ProShares Short Basic Materials Fd ( SBM).

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