Trade-Ideas LLC identified Clean Harbors ( CLH) 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 $15.5 million.
  • CLH has traded 63,068 shares today.
  • CLH is trading at 6.51 times the normal volume for the stock at this time of day.
  • CLH is trading at a new low 5.09% 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 in North America and internationally. CLH has a PE ratio of 99. Currently there are 5 analysts that rate Clean Harbors a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Clean Harbors has been 345,300 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 0.78 and a short float of 6.9% with 9.42 days to cover. Shares are up 23.5% year-to-date as of the close of trading on Friday.

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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 notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • CLH, with its decline in revenue, underperformed when compared the industry average of 12.9%. Since the same quarter one year prior, revenues fell by 13.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
  • Net operating cash flow has significantly decreased to $39.29 million or 53.65% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 194.4% when compared to the same quarter one year ago, falling from -$7.09 million to -$20.87 million.

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