The firm surprised the Street last week, when it reported Q3 EPS of 63 cents and revenues of $245.5 million. Analysts had been expecting 57 cents and $239 million. Management also guided Q4 revenues to $243-245 million, versus consensus of $238.88 million. The CEO announced strategic initiatives involving increased incineration capacity and the construction of a new solvent recovery plant. RBC Capital Markets subsequently reiterated its "top pick" rating on the stock and Wedbush Morgan repeated its "buy." CLHB shares popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Altogether, brokers recommend the issue with two "strong buys," three "buys" and one "hold." Recent price targets are in the low- to mid-$60s. Analysts see a 26% growth rate, through the next year. The CLHB PEG ratio (1.43), Price to Sales ratio (1.17), Price to Cash Flow ratio (14.24) and Return on Equity (22.54%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 92% of the outstanding shares. Over the past 52 weeks, the stock has traded between $41.02 and $56.48. A stop-loss of $47.15 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.