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CRA International, Inc. that conducts business as Charles River Associates CRAI performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its massive share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at the company’s price trend reveals that its shares have surged 130.8% in the past year compared with 54.1% rise of the industry it belongs to.
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Solid Rank & VGM Score: Charles River currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Three estimates for 2021 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2021 earnings has moved up 18.1% 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 all of the trailing four quarters, delivering an earnings surprise of 52.5%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2021 earnings is pegged at $5.02, which reflects year-over-year growth of 50%. The stock’s long-term expected earnings per share (EPS) growth rate is at 15.5%.
Driving Factors: Charles River has a diversified business with service offerings across areas of functional expertise, client base and geographical regions. Being proficient in multiple industries helps the company meet varying client needs and offer other innovative services. The company gets to know about business strategies adopted across the world. This multidisciplinary set up enables it to bring experts from all fields under one platform.
The company operates through a global network of coordinated offices spread across North America and Europe. The company’s international presence provides it the opportunity to work with the world’s leading professionals on multiple issues. This helps the company enhance its knowledge base and areas of functional expertise.
In 2020, 2019 and 2018, the company repurchased shares worth $13.4 million, $18.1 million and $27.9 million, respectively. It paid out $7.39 million, $6.54 million and $5.78 million in dividends during 2020, 2019 and 2018, respectively. This reflects on the company’s commitment toward boosting shareholders’ value and underlines its confidence in its business.
Other Stocks to Consider
Some other top-ranked stocks worth considering in the broader Zacks Business Services sector are ManpowerGroup Inc. MAN, Equifax EFX and TransUnion TRU. All the stocks carry a Zacks Rank #2 (Buy).
The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Equifax and TransUnion is pegged at 24.2%, 15.2% and 22%, respectively.
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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report
Charles River Associates (CRAI) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
TransUnion (TRU) : Free Stock Analysis Report
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Zacks Investment Research