A Pair of Top PowerRatings Stocks for Investors: AW, CLHB
Sometimes some of the most attractive stocks for investment can be found in some of the most unattractive places. And for many people, the field of waste management is about as unattractive as it gets.
But successful stock investing is hardly a beauty contest. And active investors know that many of the industries that we take for granted every day often consist of some of the most compelling investments. This is true of many industry groups, and is especially true of a field like waste management.
As such, it is of little surprise to see that the waste management industry group has earned an Industry PowerRating of 10. Remember that industries that receive our highest Industry PowerRating of 10 have been among the best industries for investors looking for quality stocks to add to their investment portfolios. We found in our historical testing that industries with PowerRatings of 10 have produced average annualized returns of more than 35% since 1995. This is more than double the average annualized return from the average industry group over the same time period.
And from this 10-rated industry, we have two stocks for investors to learn more about. Both stocks in today’s report have Long Term PowerRatings of 8. Our research, involving thousands of simulated stock trades between 1995 and 2007, indicates that stocks with Long Term PowerRatings of 8 have been both more reliable and better performers than the average stock.
What do we mean by “more reliable”? I use this term because Long Term PowerRatings stocks are more likely than the average stock to be higher in a year’s time. By “reliable” I am referring to the basic sense of assurance an active investor or long term position trader can have that a given stock is less likely than the average stock to be lower in value after a year. Reliability is a sort of basic requirement that separates, in my opinion, good investments from potentially poor ones.
How does the reliability of the 8-rated stock compare to that of the average stock? We found that stocks with Long Term PowerRatings of 8 have been higher one year later more than 74% of the time. By comparison, the average stock has been higher one year later less than 68% of the time.
In addition to being more reliable, stocks with high Long Term PowerRatings also have simply been better performers than the average stock based on our historical testing. We found, for example, that stocks with high Long Term PowerRatings of 8 have averaged gains of more than 17% after one year. The average stock, for its part, has tended to gain between 12-13% after one year.
Let’s meet the stocks.
Allied Waste
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AW |
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PowerRating) Long Term PowerRating 8
Allied Waste, with its dollar price of less than $15 as of this writing, is the kind of high Long Term PowerRating stock that a lot of investors will find attractive. Not only does Allied Waste have a good Long Term PowerRating of 8, but also the stock has managed to beat analyst earnings estimates for the past several quarters.
Allied Waste is an Arizona-based, non-hazardous, solid waste management company that serves residential, industrial and commercial clients. The company provides collection, transfer, recycling and waste disposal services.
Clean Harbors Inc.
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PowerRating) Long Term PowerRating 8
Clean Harbors Inc. beat analyst earnings estimates for the first quarter 2008, continuing a string of earnings beats that extends back to the second quarter of 2007. The company is based out of Massachusetts and operates a number of non-nuclear hazardous waste facilities in North America.
Clean Harbors has maintained a Long Term PowerRating of 8 for the past several weeks, ever since its PowerRating was upgraded from 7 to 8 back in late March. Since then, the stock’s price has advanced from the low 60s to the low 70s.
Looking for more long-term solutions to your investing problems? Don’t let the volatility of this market lead you to miss out on stocks you’ll be glad to have bought a year from now.
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David Penn is Senior Editor of PowerRatings.net.