Clean Harbors, Inc. (NYSE:CLH), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$178 at one point, and dropping to the lows of US$156. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Clean Harbors' current trading price of US$167 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Clean Harbors's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for Clean Harbors
What Is Clean Harbors Worth?
Good news, investors! Clean Harbors is still a bargain right now. According to my valuation, the intrinsic value for the stock is $236.71, but it is currently trading at US$167 on the share market, meaning that there is still an opportunity to buy now. What's more interesting is that, Clean Harbors's share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What kind of growth will Clean Harbors generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. Though in the case of Clean Harbors, it is expected to deliver a relatively unexciting earnings growth of 4.9%, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for the company, at least in the near term.
What This Means For You
Are you a shareholder? Even though growth is relatively muted, since CLH is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you've been keeping an eye on CLH for a while, now might be the time to make a leap. Its future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy CLH. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
If you want to dive deeper into Clean Harbors, you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 2 warning signs with Clean Harbors, and understanding these should be part of your investment process.
If you are no longer interested in Clean Harbors, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
