Clean Harbors (CLH) Soars 3.16% on Safety Record, Margin Goals

Clean Harbors (CLH) shares surged 3.16% intraday, marking a two-day winning streak with a total gain of 2.07%. The stock price reached its highest level since February 2025, reflecting strong market momentum.

The strategy of buying CLH shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 4.77% annualized return. The maximum drawdown of 16.93% during this period highlighted the strategy's vulnerability during market downturns. Overall, the strategy showed resilience with a Sharpe ratio of 0.29, indicating a reasonable risk-adjusted return.

Clean Harbors has been focusing on safety, achieving a record low Total Recordable Incident Rate in the first quarter of 2025. This commitment to safety, along with the company's strategic goal of reaching a consolidated margin of 22% by 2027, has likely bolstered investor confidence and contributed to the recent stock price gains.

Despite the positive developments, there are indications of bearish sentiment among investors. The short percent of float for Clean Harbors has increased by 28.69%, which could potentially impact the stock price negatively in the near term. This rise in short interest suggests that some investors are betting against the company, possibly due to concerns about its ability to meet its financial targets or other market uncertainties.

BMO Capital Markets recently reduced their price target for Clean Harbors from $284.00 to $270.00. This adjustment could influence investor expectations and potentially affect the stock price. However, it is important to note that price targets are just one factor among many that investors consider when making decisions about a stock.

Clean Harbors has set ambitious financial targets for 2025, including achieving $1.18 billion in adjusted EBITDA. The company is also focusing on the kimball ramp-up and pricing initiatives, which could positively influence the stock price if these targets are met. Investors will be closely watching the company's progress towards these goals in the coming months.