Shares of Clean Harbors, Inc. CLH have had a decent run over the past three months. The stock has gained 9.9% compared with the industry’s 2.3% growth. The Zacks S&P 500 composite declined 0.3% during that period.
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CLH has a Growth Score of B. This style score condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.
The company’s third-quarter 2026 earnings are expected to increase 47.5% year over year. Its 2026 earnings are projected to rise 33.5%. Revenues are anticipated to grow 7.6% in 2026.
Factors That Bode Well for CLH’s Success
Waste Demand Supports Top Line: Clean Harbors benefits from sustained demand for hazardous waste disposal, recycling and environmental services, supported by reshoring, per and polyfluoroalkyl substances work and long-term customer relationships. Growing industrial activity, environmental requirements and sustainability needs drive this strong demand for Clean Harbors’ services. The company reported that Environmental Services generated revenues of $1.46 billion, up 7.7% from the year-ago quarter, while Technical Services revenues rose 18% year over year during the second quarter of 2026.
CLH also reported that incinerator utilization increased to 91% from 86% a year earlier and Safety-Kleen Environmental Services revenues advanced 11% year over year during the same period. Management expects positive demand trends across segments to continue in the second half of 2026.
Acquisitions Pave the Way to Expansion: CLH’s acquisition strategy continues to broaden its service portfolio and geographic reach. Past acquisitions of HEPACO and Noble Oil Services expanded Environmental Services’ Field Services division and increased Safety-Kleen’s oil collection presence in the southeastern United States, respectively. In the first half of 2026, the company acquired Terra Nova Solutions to enhance its technical and field services businesses, including drum collection, wastewater treatment, tank cleaning and vacuum services. CLH announced an agreement to acquire EnviroServe and Depot Connect International to strengthen its Technical Services and Field Services businesses, while supporting increased throughput across its disposal and recycling portfolio.
Strong Cash Position Supports Financial Flexibility: CLH had $408.4 million of cash and cash equivalents and $108.4 million of short-term marketable securities at the end of the second quarter of 2026. It generated $245.5 million of operating cash flow in the first six months of 2026, up from $209.6 million a year earlier. The company’s current ratio of 2.13 at the end of the second quarter of 2026 indicates that current assets remained above current liabilities. This solid cash position allows the company to innovate and expand further, giving it robust financial flexibility.
Consistent Buybacks Support Capital Allocation Strategy: The company has consistently returned capital through share buybacks over the years. It repurchased shares worth $51.1 million in 2023, $55.2 million in 2024 and $250 million in 2025. This consistency persisted as, in the first six months of 2026, it repurchased another $52.1 million of common stock. This consistency continues to generate shareholder value.
Risks to CLH Stock
Stiff Competition Raises Cost Pressure: Clean Harbors faces stiff rivalry from large national providers and smaller regional firms across environmental and industrial services. Maintaining differentiation requires continued spending on its network, capabilities and service offerings. As a result, CLH faces the challenge of balancing costs while maintaining steady profitability.
Foreign-Currency Risks: Clean Harbors faces foreign-exchange risk from its Canadian operations. In the first six months of 2026, foreign-currency translation resulted in a $17.7 million loss against a $24.7 million gain a year earlier, while exchange-rate movements reduced cash by $4.7 million. Continued U.S.-Canadian dollar volatility could pressure reported results and increase earnings variability.
Absence of Dividend Makes Stock Unattractive: CLH does not offer quarterly dividends. Investors therefore depend on share-price appreciation for returns, which is not guaranteed. This makes the shares less suitable for investors seeking recurring cash income.
Clean Harbors has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
A couple of better-ranked stocks in the broader Business Services sector are Bright Horizons Family Solutions Inc. BFAM and CBIZ, Inc. CBZ.
Bright Horizons Family Solutions carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 13.9%.
BFAM delivered a trailing four-quarter earnings surprise of 7.6%, on average.
CBIZ also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 11.6%.
CBZ beat earnings estimates in three of the last four quarters and missed once, with an average earnings surprise of 8.9%.
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This article originally published on Zacks Investment Research (zacks.com).