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Reasons Why You Should Bet on Charles River (CRAI) Stock Now
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The stock of CRA International, Inc., which conducts business as Charles River Associates (CRAI - Free Report) , has gained a whopping 75% over the past year, significantly outperforming the 8% decline of the industry it belongs to and the 26% growth of the Zacks S&P 500 composite.
Let’s take a look at the factors that make the stock an attractive pick.
Solid Rank: Charles River currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Four estimates for 2024 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for CRAI’s 2024 earnings has moved up 5.3% in the past 60 days.
Positive Earnings Surprise History: Charles River has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average earnings surprise of 19.1%.
Strong Growth Prospects: The Zacks Consensus Estimate for Charles River’s 2024 earnings is pegged at $6.19, which implies 13.4% year-over-year growth. Moreover, earnings are expected to register a 9.1% increase in 2025.
Driving Factors: Commitment to shareholder returns makes Charles River a reliable way for investors to compound wealth over the long term. In 2023, 2022, and 2021, the company repurchased shares worth $24.8 million, $27.6 million and $44.9 million, respectively. It paid $10.8 million, $9.58 million, and $8.29 million as dividends during 2023, 2022 and 2021, respectively. Such moves indicate its commitment to creating value for shareholders and underline its confidence in its business.
Charles River's current ratio (a measure of liquidity) at the end of first-quarter 2024 was 1.16, higher than 1.12 in the preceding quarter and 1.02 at the end of the year-ago quarter. Acurrent ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
Booz Allen Hamilton has a Zacks Rank of 2 at present. BAH has a long-term earnings growth expectation of 14%. It delivered a trailing four-quarter earnings surprise of 12.5%, on average.
SPX Technologies, Inc. currently flaunts a Zacks Rank of 1. It has a long-term earnings growth expectation of 18%. SPXC delivered a trailing four-quarter earnings surprise of 13.9%, on average.
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Reasons Why You Should Bet on Charles River (CRAI) Stock Now
The stock of CRA International, Inc., which conducts business as Charles River Associates (CRAI - Free Report) , has gained a whopping 75% over the past year, significantly outperforming the 8% decline of the industry it belongs to and the 26% growth of the Zacks S&P 500 composite.
Let’s take a look at the factors that make the stock an attractive pick.
Solid Rank: Charles River currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Four estimates for 2024 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for CRAI’s 2024 earnings has moved up 5.3% in the past 60 days.
Positive Earnings Surprise History: Charles River has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average earnings surprise of 19.1%.
Strong Growth Prospects: The Zacks Consensus Estimate for Charles River’s 2024 earnings is pegged at $6.19, which implies 13.4% year-over-year growth. Moreover, earnings are expected to register a 9.1% increase in 2025.
Driving Factors: Commitment to shareholder returns makes Charles River a reliable way for investors to compound wealth over the long term. In 2023, 2022, and 2021, the company repurchased shares worth $24.8 million, $27.6 million and $44.9 million, respectively. It paid $10.8 million, $9.58 million, and $8.29 million as dividends during 2023, 2022 and 2021, respectively. Such moves indicate its commitment to creating value for shareholders and underline its confidence in its business.
Charles River's current ratio (a measure of liquidity) at the end of first-quarter 2024 was 1.16, higher than 1.12 in the preceding quarter and 1.02 at the end of the year-ago quarter. A current ratio of more than 1 often indicates that the company will be easily paying off its short-term obligations.
Zacks Rank and Other Stocks to Consider
A couple of other top-ranked stocks from the broader Zacks Business Services sector are Booz Allen Hamilton (BAH - Free Report) and SPX Technologies, Inc. (SPXC - Free Report) .
Booz Allen Hamilton has a Zacks Rank of 2 at present. BAH has a long-term earnings growth expectation of 14%. It delivered a trailing four-quarter earnings surprise of 12.5%, on average.
SPX Technologies, Inc. currently flaunts a Zacks Rank of 1. It has a long-term earnings growth expectation of 18%. SPXC delivered a trailing four-quarter earnings surprise of 13.9%, on average.