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CRA International Inc (CRAI): Will The Growth Last?

Based on the latest analyst predictions, CRA International Inc (NASDAQ:CRAI) is estimated to sizably grow its earnings by 42.75% in the upcoming three years. With the recent EPS being $1.422, expected growth will push the upcoming EPS to $2.029. I am going to look at the latest data on CRAI to assess whether this expected growth is reasonable. View our latest analysis for CRA International

Exciting times ahead?

CRAI is covered by 2 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $1.422 to $2.029 in a few years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 42.75% over the next few years. During the same time and net income is predicted to slightly grow from $12M to $17M in the next couple of years, roughly staying around the same level. However, margins look rather unappealing at the current levels of revenue and earnings.

NasdaqGS:CRAI Past Future Earnings Oct 27th 17
NasdaqGS:CRAI Past Future Earnings Oct 27th 17

Is this similar growth to the past?

The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. CRAI’s earnings growth the past couple of years was 24.67% which indicates that the company’s past performance will continue to persist into the future. This means CRAI has already proven its capacity to grow at a robust rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.

Next Steps:

For CRAI, there are three essential aspects you should further examine:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

2. Valuation: What is CRAI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CRAI is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of CRAI? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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