Here's Why Investors Must Add CLH Stock in Their Portfolios Now

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Here's Why Investors Must Add CLH Stock in Their Portfolios Now

Shares of Clean Harbors CLH have jumped 25.1% over the past year against the industry’s 15.8% decline.

What Makes Clean Harbors Stock an Attractive Pick?

Solid Rank:  CLH currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.

Northward Estimate Revisions:  Three estimates for 2026 moved north in the past 60 days, versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2026 earnings has moved up 3.7% in the past 60 days.

Strong Growth Prospects:  The Zacks Consensus Estimate for CLH’s 2026 earnings is pegged at $8.38 per share, reflecting 15.1% year-over-year growth. Earnings are expected to register a 10% increase in 2027.

Expertise in Hazardous Waste Disposal: CLH’s expertise in hazardous waste disposal and environmental cleanup is highly sought in the manufacturing, healthcare and energy sectors. The company gains from long-term service contracts, providing recurring revenues and stable cash flows. CLH’s top line has increased at a compound annual growth rate of 11.5% from 2020 to 2025.

Robust Liquidity Profile: CLH's current ratio at the end of the first quarter of 2026 was 2.34, higher than the industry average of 1.08. A current ratio of more than 1 often indicates that the company will be able to easily pay off its short-term obligations. The times interest earned ratio of 4.82X has been coming down over the past year, and stands close to the industry’s 4.93X, suggesting no trouble in servicing.

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Active Share Repurchases: CLH consistently returns value to its shareholders in the form of share repurchases. In 2022, the company had share repurchases of $50.2 million. The amount increased to $51.1 million, $55.2 million and $250 million in 2023, 2024 and 2025, respectively. Such actions underline the company’s confidence in business and help enhance investors’ confidence in the stock by positively impacting the bottom line.

Other Stocks to Consider

Some other top-ranked stocks from the broader Zacks Business Services sector are Enpro Inc. NPO and FactSet Research Systems FDS, each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Enpro has a long-term earnings growth expectation of 15%. NPO delivered a trailing four-quarter earnings surprise of 2%, on average.

FactSet Research Systems has a long-term earnings growth expectation of 6.5%. FDS delivered a trailing four-quarter earnings surprise of 0.4%, on average.

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FactSet Research Systems Inc. (FDS): Free Stock Analysis Report
 
Clean Harbors, Inc. (CLH): Free Stock Analysis Report
 
Enpro Inc. (NPO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research