Covanta Holding’s CVA focus on developing and commercializing new technology, systematic capital expenditure and efforts to reduce long-term costs of ash disposal will be its key tailwinds.We recently issued an updated research report on this currently Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The company has a trailing four-quarter earnings surprise of 75.05%, on average.What’s Driving the Stock?Over the past several years, Covanta Holding has been investing substantially in the purchase of property, plant and equipment to enhance its infrastructure and serve its customers efficiently. These investments will enable the company to increase safety and reliability of its Energy-from-Waste projects to provide solutions for solid waste and recyclable household wastes.During the first three quarters of 2020, the majority of waste and service revenues were related to residential waste generation, which were unaffected by the pandemic. Moreover, to strengthen and enhance its existing operations, the company is commercializing new technologies like recycling of wastes, innovating alternative waste treatment processes, effecting combustion and emission controls as well as recycling, reusing or disposing the waste.Further, to minimize its long-term ash disposal expense and maintain more sustainability while creating new revenue-earning opportunities, the company has been developing its first total ash processing system for sometime now.Moreover, in 2019, it invested $56 million in different growth projects. It aims to pump $30 million into different endeavors during 2020 to expand its current activities. This includes $15 million worth investments in consolidating international business.WoesStringent laws and regulations in the United States and rising debt levels are headwinds to the stock. Also, non-renewal and possibility of contract cancellations might hinder growth.Price PerformanceShares of Covanta Holding have gained 42.7% in the past six months, outperforming the industry’s rise of 17.3%.Other Stocks to ConsiderA few other stocks worth considering from the same sector are Ameresco, Inc. AMRC, CNOOC Limited CEO and Global Partners LP GLP, all carrying the same Zacks Rank as Covanta Holding at present.Ameresco has a long-term (three-five years) earnings growth rate of 17.50%. The company delivered an earnings surprise of 68.56%, on average, in the last four quarters.The Zacks Consensus Estimate for CNOOC’s 2020 earnings has been revised 1.7% upward over the past 60 days. The company has a long-term earnings growth rate of 6.65%.The Zacks Consensus Estimate for Global Partners’ 2020 earnings has moved 14.8% north over the past 60 days. It delivered an earnings surprise of 214.64%, on average, in the trailing four quarters.Looking for Stocks with Skyrocketing Upside?Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.See the pot stocks we're targeting >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNOOC Limited (CEO): Free Stock Analysis Report Global Partners LP (GLP): Free Stock Analysis Report Ameresco, Inc. (AMRC): Free Stock Analysis Report Covanta Holding Corporation (CVA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research