Drilling Down Into Covanta Holding Corporation (CVA)

Covanta Holding Corporation (NYSE:CVA) is an interesting player in the Industrial Goods space, with a focus on Waste Management. The stock has been active on the tape, currently trading at $15.95, up from yesterday’s close by -1.54%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Covanta Holding Corporation (CVA) currently trades with a market capitalization of $2.07B. That value represents a market adjusting for revenues that have been falling by -0.20% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CVA, the company currently has $113.00M of cash on the books, which is offset by $2.70B current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $16.62M over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of 0.12 on a per share basis this quarter. Perhaps, that suggests something about why 76.50% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Covanta Holding Corporation recorded a 52-week high of 17.75. It is now trading 1.55 off that level. The stock is trading 15.26 its 50-day moving average by -0.94. The stock carved out a 52-week low down at 12.48.

In recent action, Covanta Holding Corporation (CVA) has made a move of +3.91% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 7.24, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. That suggests something of the likelihood of a short squeeze in shares of CVA.

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