Why Clean Harbors (CLH) Stock Is Falling Today

NEW YORK (TheStreet) -- Shares of Clean Harbors Inc  (CLH) are falling -4.63% to $57.61 after the company was downgraded to "hold" from "buy" at BB&T Capital Markets (BBT) this morning. 

Analysts at the firm removed its prior price target of $68.

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Separately, TheStreet Ratings team rates CLEAN HARBORS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate CLEAN HARBORS INC (CLH) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.93, 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 1.47, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $110.35 million or 12.57% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.50%.
  • The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • CLEAN HARBORS INC has improved earnings per share by 23.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CLEAN HARBORS INC reported lower earnings of $1.57 versus $2.38 in the prior year. This year, the market expects an improvement in earnings ($1.80 versus $1.57).
  • You can view the full analysis from the report here: CLH Ratings Report

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