Clean Harbors Inc (CLH): Cleanliness is Next to Godliness

Veolia Environnement Ve SA (ADR) (NYSE:VE) provides water services, waste management, energy services, and both industrial and public transportation services. They are located in 77 countries including the United States, giving them a major worldwide presence. Veolia is much like Waste Management, but also has a natural disaster relief program like Clean Harbors, posing a threat. They specialize in cleanup after hurricanes, tornadoes, floods, and the other areas Clean Harbors specializes in. I see Veolia as the top competitor to Clean Harbors, but neither company will be able to put the other out of business.

Clean Harbors is currently trading around 26.5 times earnings and 18.4 times forward earnings. With the Hurricane Sandy relief ongoing, I believe Clean Harbors can increase their 2013 outlook and send shares higher. However, when there is a dry spell of natural disasters Clean Harbor’s (NYSE:CLH) earnings take a hit. This stock is currently down over 17.5% in the last 52 weeks, so there is definitely plenty of room to run. I see this one reaching $60 per share in 2013, and have therefore made an outperform call on CAPS. Clean Harbors is a BUY.

The article Cleanliness is Next to Godliness originally appeared on Fool.com and is written by Joseph Solitro.

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