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 Clean Harbors ( CLH) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $34.0 million.
- CLH has traded 309,038 shares today.
- CLH traded in a range 209% of the normal price range with a price range of $2.00.
- CLH traded below its daily resistance level (quality: 54 days, meaning that the stock is crossing a resistance level set by the last 54 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower. EXCLUSIVE OFFER: Get the inside scoop on opportunities in CLH with the Ticky from Trade-Ideas. See the FREE profile for CLH NOW at Trade-Ideas More details on CLH: 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. CLH has a PE ratio of 24.9. Currently there are 9 analysts that rate Clean Harbors a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for Clean Harbors has been 625,200 shares per day over the past 30 days. Clean Harbors has a market cap of $3.4 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.62 and a short float of 9.4% with 6.91 days to cover. Shares are down 6.5% year-to-date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Clean Harbors as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- CLH's very impressive revenue growth greatly exceeded the industry average of 5.8%. Since the same quarter one year prior, revenues leaped by 70.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.95, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.35, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 150.36% to $142.50 million when compared to the same quarter last year. In addition, CLEAN HARBORS INC has also vastly surpassed the industry average cash flow growth rate of -21.65%.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Commercial Services & Supplies industry average, but is greater than that of the S&P 500. The net income increased by 186.1% when compared to the same quarter one year prior, rising from $12.36 million to $35.36 million.
- You can view the full Clean Harbors Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.