Casella Waste Hits New 52-Week High On Robust '16 Outlook

Shares of Casella Waste Systems, Inc. (NASDAQ:CWST) reached a new 52-week high of $12.85 during its trading session on Nov 25. This apex improved upon the last 52-week high of $12.75 on Nov 23.

Casella Waste Systems closed its trading session a tad lower at $12.77, yielding a solid year-to-date return of 113.5%. The trading volume for the session was 0.07 million shares. Earnings estimate revisions for 2016 and 2017 indicate Casella Waste Systems’ potential for further price appreciation.

Growth Drivers

Casella Waste Systems reported better-than-expected results in three of the last four quarters, while lagged estimates in one. In third-quarter 2016, the company’s earnings of 18 cents per share exceeded the Zacks Consensus Estimate of 10 cents by 80%. Positive pricing and cost-reduction efforts were primarily responsible for the rise in operating income in the quarter. The company’s share price has gained roughly 17.7% since the third-quarter results release on Nov 3.

For 2016, Casella Waste Systems increased its adjusted earnings before interest, tax, depreciation and amortization guidance to $116−$118 million range from the earlier projection of $115−$117 million. Also, the company anticipates normalized free cash to come within $22−$25 million range, up from $20−$24 million expected earlier. Revenue is predicted to come within the upper end of the previously provided guidance range of $550−$560 million.

Currently, Casella Waste Systems has an Earnings ESP (the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate) of +12.50% for 2016 and +8.57% for 2017. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Estimate Revisions Show Potency

Over the last 30 days, the Zacks Consensus Estimate for Casella Waste Systems grew 14.3% to 8 cents per share for 2016 and 29.6% to 35 cents per share for 2017. These estimates represent year-over-year growth of 123% for 2016 and 350.5% for 2017.

With a market capitalization of $530 million, Casella Waste Systems currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector include ACCO Brands Corporation (NYSE:ACCO) , CECO Environmental Corp. (NASDAQ:CECE) and Vertex Energy, Inc. (NASDAQ:VTNR) . While ACCO Brands sports a Zacks Rank #1 (Strong Buy), both CECO Environmental and Vertex Energy carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ACCO Brands Corporation posted an average positive earnings surprise of 23.93% in the last four quarters. Also, the earnings estimates for 2016 and 2017 have been revised upward over the past 60 days.

CECO Environmental’s earnings estimates for 2016 and 2017 have been revised upward in the last 60 days. Also, the company has a positive average earnings surprise of 12.28% for the last four quarters.

Vertex Energy has a positive average earnings surprise of 27.12% for the last four quarters. Also, its bottom-line estimates improved for 2016 and 2017 over the last 60 days.

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