Reasons to Keep Clean Harbors Shares in Your Investment Portfolio

Clean Harbors Inc. Outperforms Industry in Recent Trading

Over the last month, Clean Harbors Inc. (CLH) shares have seen a notable increase of 8.9%, surpassing the industry’s average growth of 3.7%.

Financial Outlook and Growth Projections

Looking ahead to the first quarter of 2026, Clean Harbors is anticipated to post a 3.7% year-over-year rise in earnings. For the full years 2026 and 2027, earnings are forecasted to climb by 10.3% and 10.9%, respectively. Revenue is also projected to grow, with estimates of a 3.5% increase in 2026 and a 4.6% rise in 2027.

Key Drivers Behind CLH’s Success

Several factors are fueling Clean Harbors’ revenue expansion, including heightened industrial activity, more stringent environmental regulations, and a growing emphasis on corporate sustainability. The company meets this demand by offering a comprehensive suite of services, such as hazardous waste management, emergency response, industrial cleaning, maintenance, and recycling, serving a wide range of industries.

Revenue Performance

Strategic Acquisitions and Expansion

Clean Harbors continues to grow through targeted acquisitions. The purchase of HEPACO has strengthened its Environmental Services division, while acquiring Noble Oil Services has expanded its oil collection operations in the southeastern United States. Recently, CLH announced an agreement to acquire environmental businesses from Depot Connect International for approximately $130 million.

Strong Financial Position

At the close of the fourth quarter of 2025, Clean Harbors reported a current ratio of 2.33, significantly above the industry average of 1. This robust liquidity position indicates the company’s ability to comfortably meet its short-term financial commitments.

Shareholder Value Initiatives

The company has demonstrated its commitment to shareholders through substantial share buybacks, repurchasing $2.5 billion in 2025, $55.2 million in 2024, $51.1 million in 2023, and $50.2 million in 2022. These actions reflect management’s confidence in the business and help reinforce investor trust.

Potential Drawback

One consideration for investors is that Clean Harbors does not pay quarterly cash dividends. This may be less appealing to those seeking regular dividend income, as returns are dependent solely on stock price appreciation, which can fluctuate.

Zacks Rank and Alternative Investment Options

Currently, Clean Harbors holds a Zacks Rank #3 (Hold).

Investors interested in the broader Business Services sector may consider these higher-ranked alternatives:

• Coherent Corp. (COHR): Zacks Rank #2 (Buy), with a long-term earnings growth projection of 29.9%. The company has delivered an average earnings surprise of 7.7% over the past four quarters.
• Deluxe (DLX): Also holding a Zacks Rank #2, Deluxe is expected to achieve 12% long-term earnings growth and has posted a four-quarter average earnings surprise of 15.6%.

Top Stock Picks from Zacks

Zacks’ research team has identified five stocks with the potential to double in value in the coming months. Among these, the Director of Research, Sheraz Mian, highlights a standout pick—a lesser-known satellite communications company poised for significant growth as the space industry expands toward a trillion-dollar market. Analysts predict a major revenue surge in 2025. While not every top pick is guaranteed to succeed, this stock could outperform previous winners like Hims & Hers Health, which soared by 209%.

Additional Resources