20 Most Profitable Stocks of the Last 20 Years

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

20-Year Annualized Return: 27.45% 

Clean Harbors, Inc. (NYSE:CLH) provides environmental, energy, and industrial services throughout North America.

Clean Harbors, Inc. (NYSE:CLH) achieved a 5% increase in revenue to $1.38 billion in Q1 2024, from $1.31 billion in the same period last year. This growth was driven prominently by a robust 10% expansion in Environmental Services. Income from operations rose to $125.5 million, up from $121.0 million in Q1 2023, indicating improved operational efficiency and cost management.

Net income for the quarter amounted to $69.8 million, resulting in earnings per share of $1.29. Adjusted EBITDA also saw a healthy uptick, growing by 7% to reach $230.1 million with a solid margin of 16.7%. In Q1 2024, Clean Harbors completed the $400 million acquisition of HEPACO, enhancing its field services capabilities with a focus on expanding revenue synergies, particularly in the rail industry. Clean Harbors launched a “Total PFAS Solution” to address PFAS contamination needs, projecting significant revenue growth in this sector. Their plans include investing $65 million in a Nebraska incinerator and $20 million to expand its Baltimore facility, aiming to strengthen operational capabilities and market presence.

In Q1 2024, there were around 42 hedge fund holders in the company, up from 32 in the previous quarter. Select Equity Group held the largest position in the company with 1,945,494 shares worth $391,647,397. Analysts are bullish on Clean Harbors with a strong buy rating from 10 stock analysts. The 10 analysts covering Clean Harbors stock have an average 12-month price target of $216.4, ranging from $184 to $240. This suggests an average downside potential of approximately 3.53% from the current stock price of $224.31.