Covanta Holding is Holding Steady on Stock Price This Year



Covanta Holding’s stock price

Before summing up our analysis of Covanta Holding Corporation (CVA), let’s have a look at the performance of its stock price since the beginning of 2015.

Covanta Holding Corporation (CVA) has underperformed the broader market since the beginning of 2015. While the broad-based SPDR S&P 500 (SPY) index has risen by 3.4% since the beginning of the year until June 24, 2015, CVA has remained largely steady, posting marginal 0.2% returns. But if you include dividends, CVA’s total return would be higher than stock returns but still lower than broad market returns.

While CVA stock fell during the early part of the year, it did recover. Another fall came after the company’s disappointing 1Q15 results, which were largely weaker than analysts’ expectations. The stock has been able to recover after that as well.

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Peer performance

Waste Connections (WCN) has been the best performer in the sector so far in 2015. WCN stock price has risen more than 8%, going up steadily during 1Q15. The stock fell after the company’s 1Q15 results, but it recovered, as you can see in the above graph. WCN is the only major stock in the sector that is outperforming the broad market.

Stericycle (SRCL) has posted 3.1% returns since the beginning of 2015. Part of the early gains posted by the company were erased after the earnings miss of 1Q15.

Republic Services (RSG) has been trading in a narrow range since the beginning of the year. It has lost around 1.1% through June 24.

Waste Management (WM) has been on a losing streak in 2Q15, more than offsetting its early gains. The stock has fallen 7.5% since the start of the year.


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