Technical’s Trade-of-the-Week: Casella Waste Systems Inc. (CWST)

By Tech_Spec
11-August-2018 9:06:03 PM

This week’s Trade-of-the-Week comes from the industrial sector of NASDAQ, waste and disposal sub-section.  Though the fundamentals are not overly impressive, there is no denying the upside strength of this stock.  Since 2015, CWST has been on a solid upward trend advancing almost 600%!  The recent breakout is just another part of the primary trend.  The 1st target is $32.90 and then ultimately to $36.00.

Casella Waste Systems, Inc., together with its subsidiaries, operates as a vertically-integrated solid waste services company in the northeastern United States. The company operates through Eastern Region, Western Region, Recycling, and Other segments. It offers resource management services primarily in the areas of solid waste collection and disposal, transfer, recycling, and organics services to residential, commercial, municipal, and industrial customers. The company provides a range of non-hazardous solid waste services, including collections, transfer stations, material recovery facilities, and disposal facilities. It also processes and markets recyclable metals, aluminum, plastics, and paper and corrugated cardboard, as well as recyclables purchased from third-parties.

Key Fundamentals:

Trailing P/E: 40.88, Forward P/E: 36.12, EPS: 0.71

PEG: 10.98, Beta: 1.05

P/S: 1.98, P/B: N/A

Profit Margin: 4.79%, Operating Margin: 7.90%

ROA: 4.97%


Quarterly Earnings Growth (YoY): 7.60%

Current Ratio: 1.01

Key Technicals:

Recently broke out of a 7-month consolidation

New 52-week high, New all-time high

Buying momentum (RSI) is near an overbought level

Buying volume is increasing

Above the rising 50-week m/a, 1st support level is $27.50

The target is $32.90

Suggested buying approach: As CWST is nearly overbought, buy a half position now.  If the stock pulls back over the next few weeks, wait until there is conformation of support and then add to the position.  Always use a 3% trailing stop.







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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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