Canada markets close in 5 hours 35 minutes
  • S&P/TSX

    20,490.49
    +87.83 (+0.43%)
     
  • S&P 500

    4,452.86
    -2.62 (-0.06%)
     
  • DOW

    35,042.55
    +244.55 (+0.70%)
     
  • CAD/USD

    0.7913
    +0.0009 (+0.12%)
     
  • CRUDE OIL

    75.47
    +1.49 (+2.01%)
     
  • BTC-CAD

    54,993.28
    -16.93 (-0.03%)
     
  • CMC Crypto 200

    1,082.85
    -18.67 (-1.70%)
     
  • GOLD FUTURES

    1,754.00
    +2.30 (+0.13%)
     
  • RUSSELL 2000

    2,269.63
    +21.55 (+0.96%)
     
  • 10-Yr Bond

    1.4750
    +0.0150 (+1.03%)
     
  • NASDAQ

    14,955.04
    -92.66 (-0.62%)
     
  • VOLATILITY

    18.45
    +0.70 (+3.94%)
     
  • FTSE

    7,059.46
    +7.98 (+0.11%)
     
  • NIKKEI 225

    30,240.06
    -8.75 (-0.03%)
     
  • CAD/EUR

    0.6757
    +0.0017 (+0.25%)
     

Will Clean Harbors (CLH) Beat Estimates Again in Its Next Earnings Report?

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Clean Harbors (CLH), which belongs to the Zacks Waste Removal Services industry.

When looking at the last two reports, this environmental services company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 65.90%, on average, in the last two quarters.

For the most recent quarter, Clean Harbors was expected to post earnings of $0.26 per share, but it reported $0.42 per share instead, representing a surprise of 61.54%. For the previous quarter, the consensus estimate was $0.37 per share, while it actually produced $0.63 per share, a surprise of 70.27%.

Price and EPS Surprise

For Clean Harbors, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Clean Harbors has an Earnings ESP of +18.71% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 4, 2021.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Clean Harbors, Inc. (CLH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting