Spotting Winners: Clean Harbors (NYSE:CLH) And Waste Management Stocks In Q4

Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Clean Harbors (NYSE:CLH) and its peers.

Waste management companies can possess licenses permitting them to handle hazardous materials. Furthermore, many services are performed through contracts and statutorily mandated, non-discretionary, or recurring, leading to more predictable revenue streams. However, regulation can be a headwind, rendering existing services obsolete or forcing companies to invest precious capital to comply with new, more environmentally-friendly rules. Lastly, waste management companies are at the whim of economic cycles. Interest rates, for example, can greatly impact industrial production or commercial projects that create waste and byproducts.

The 9 waste management stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 1.2%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.5% since the latest earnings results.

Clean Harbors (NYSE:CLH)

Established in 1980, Clean Harbors (NYSE:CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.

Clean Harbors reported revenues of $1.43 billion, up 6.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations.

“Our fourth-quarter results were in line with our expectations as our Environmental Services (ES) segment capped a record 2024 with a robust performance, including the 11th consecutive quarter of year-over-year margin growth,” said Mike Battles, Co-Chief Executive Officer.Clean Harbors Total Revenue

Unsurprisingly, the stock is down 14.4% since reporting and currently trades at $193.67.

Is now the time to buy Clean Harbors? Access our full analysis of the earnings results here, it’s free.

Best Q4: Casella Waste Systems (NASDAQ:CWST)

Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ:CWST) offers waste management services for businesses, residents, and the government.

Casella Waste Systems reported revenues of $427.5 million, up 18.9% year on year, outperforming analysts’ expectations by 2.3%. The business had a satisfactory quarter with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.

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Casella Waste Systems Total Revenue

Casella Waste Systems achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 6.4% since reporting. It currently trades at $113.65.

Is now the time to buy Casella Waste Systems? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Quest Resource (NASDAQ:QRHC)

Recycling corporate waste to help companies be more sustainable, Quest Resource (NASDAQ:QRHC) is a provider of waste and recycling services.

Quest Resource reported revenues of $69.97 million, flat year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

As expected, the stock is down 35.1% since the results and currently trades at $2.51.

Read our full analysis of Quest Resource’s results here.

Waste Connections (NYSE:WCN)

Operating a network of municipal solid waste landfills in the U.S. and Canada, Waste Connections (NYSE:WCN) is North America's third-largest waste management company providing collection, disposal, and recycling services.

Waste Connections reported revenues of $2.26 billion, up 11% year on year. This print topped analysts’ expectations by 0.8%. Zooming out, it was a mixed quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ EPS estimates.

The stock is up 1.1% since reporting and currently trades at $191.80.

Read our full, actionable report on Waste Connections here, it’s free.

Perma-Fix (NASDAQ:PESI)

Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services.

Perma-Fix reported revenues of $14.7 million, down 35.3% year on year. This result lagged analysts' expectations by 6.9%. It was a disappointing quarter as it also logged a significant miss of analysts’ EBITDA and EPS estimates.

Perma-Fix had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $7.23.

Read our full, actionable report on Perma-Fix here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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