12 Best Waste Management Stocks to Invest In Now

4. Clean Harbors, Inc. (NYSE:CLH)

Number of Hedge Fund Investors: 44

Clean Harbors, Inc. (NYSE:CLH) is included among the Best Waste Management Stocks. It is an environmental and industrial service provider. It delivers parts cleaning and environmental services to commercial, industrial, and automotive customers. Its business units are Environmental Services and Safety-Kleen Sustainability Solutions. The majority of the company’s revenue comes from the Environmental Services division.

The firm is the leader in hazardous waste management, with significant entry hurdles, 90% recurring revenue, and great pricing power. Clean Harbors, Inc. (NYSE:CLH)’s competitive advantage consists of owning EPA-approved landfills, high-capacity incinerators, and exclusive contracts for emergency response and industrial services.

In Q4 2024, Clean Harbors, Inc. (NYSE:CLH) reported solid consolidated results, exceeding Street expectations with a 10% EBITDA growth in 2024. It had record sales, adjusted EBITDA, and adjusted free cash flow throughout the year. The Environmental Services division outperformed expectations, increasing revenue by 9% and adjusted EBITDA by 11%. The successful introduction of the Kimball Incinerator in Nebraska improved North American capacity by 12%.

The company launched its Total PFAS solution and performed successful PFAS incineration testing, expecting significant market growth. It is in a good position for strategic expansion prospects because of its low leverage and solid $790 million cash balance.

​​Risks include cost inflation, margin pressure, and volatility in the Safety-Kleen area, but Clean Harbors, Inc. (NYSE:CLH) has the potential for long-term success.

Bell Global Equities Fund stated the following regarding Clean Harbors, Inc. (NYSE:CLH) in its Q4 2024 investor letter:

“The other new name introduced to the portfolio was Clean Harbors, Inc. (NYSE:CLH), the largest hazardous waste company in North America. We expect Clean Harbors’ demand to grow a little faster than GDP as environmental regulations continue to tighten and the scarcity value of their landfill and incinerator assets allows them to consistently raise prices. Additionally, the onshoring of manufacturing and their Total PFAS solution act as further growth drivers. We initiated the position based on these robust fundamentals, coupled with our belief that the market has yet to fully appreciate the value of these assets and services, a view supported by recent private market transaction prices.”