The stock of CRA International, Inc., which conducts business as Charles River Associates CRAI, has gained a whopping 53% over the past year, significantly outperforming the 32% growth of the industry it belongs to and the 28% return of the Zacks S&P 500 composite.
Let’s take a look at the factors that make the stock an attractive pick.
Solid Rank & VGM Score: CRAI currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or #2 (Buy), offer the best investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
Charles River Associates Price
Charles River Associates price | Charles River Associates Quote
Northward Estimate Revisions: Three 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 9% in the past 60 days.
Positive Earnings Surprise History: Charles Riverhas 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 23.5%.
Strong Growth Prospects: The Zacks Consensus Estimate for Charles River’s 2024 earnings is pegged at $6.75, which implies 23.6% year-over-year growth. Moreover, earnings are expected to register an 8.4% increase in 2025.
Driving Factors: Commitment to shareholder returns makes Charles Rivera 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 the company’s commitment to create value for shareholders and underline its confidence in its business.
Charles River's current ratio (a measure of liquidity) at the end of the second quarter of 2024 was 1.07, lower than 1.16 in the preceding quarter. Although declined sequentially, 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 Genpact G and Jamf JAMF.
Genpact carries a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 8.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
G delivered a trailing four-quarter earnings surprise of 6.9%, on average.
Jamf currently carries a Zacks Rank of 2. The company has a long-term earnings growth expectation of 57%. JAMF delivered a trailing four-quarter earnings surprise of 15.7%, on average.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Charles River Associates (CRAI) : Free Stock Analysis Report
Genpact Limited (G) : Free Stock Analysis Report
Jamf Holding Corp. (JAMF) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
