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.

Trade-Ideas LLC identified Clean Harbors ( CLH) as a "dead cat bounce" (down big yesterday but up big today) 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 $28.2 million.
  • CLH has traded 160,730 shares today.
  • CLH is up 3.1% today.
  • CLH was down 7.9% yesterday.

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. provides environmental, energy, and industrial services in North America. Currently there are 4 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 380,400 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 0.76 and a short float of 9.8% with 8.81 days to cover. Shares are down 3.4% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Clean Harbors as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 1744.58% to $84.78 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 7.61%.
  • Even though the current debt-to-equity ratio is 1.20, it is still below the industry average, suggesting that this level of debt is acceptable within the Commercial Services & Supplies industry. Despite the fact that CLH's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.52 is high and demonstrates strong liquidity.
  • CLH, with its decline in revenue, slightly underperformed the industry average of 3.8%. Since the same quarter one year prior, revenues fell by 13.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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.
  • The gross profit margin for CLEAN HARBORS INC is currently lower than what is desirable, coming in at 25.39%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.96% trails that of the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.