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Here's Why You Should Buy CRA International (CRAI) Stock Now

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CRA International, Inc. (CRAI - Free Report) performed well in the past year and has the potential to sustain the momentum. If you haven’t taken advantage of its 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 28.3% in the past year against the 28.7% plunge of the industry it belongs to.

Solid Rank & VGM Score: CRA International currently carries a Zacks Rank #2 (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 (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.

Zacks Investment Research
Image Source: Zacks Investment Research

Northward Estimate Revisions: Three estimates for 2022 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2022 earnings has moved up 9.2% in the past 60 days. The metric for 2023 earnings has moved up 3.7% in the past 60 days as well.

Positive Earnings Surprise History: CRA International 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 25.7%, on average.

Strong Growth Prospects: The Zacks Consensus Estimate for 2022 earnings is pegged at $6.16 per share, which reflects year-over-year growth of 12.2%. The company’s long-term expected earnings per share growth rate is at 14.3%.

Driving Factors: CRAI has diversified businesses with service offerings across areas of functional expertise, client base and geographical regions. Being proficient in multiple industries helps the company to meet varying client needs and offer other innovative services.

Further, 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 diversification in business helps the company to reduce its dependence on any specific market, industry or geographic area. It also increases the company’s ability to adapt to changing conditions.

We are impressed with CRA International’s consistent record of returning value to shareholders in the form of dividend and share repurchases. In 2021, 2020 and 2019, the company repurchased shares worth $44.9 million, $13.4 million and $18.1 million, respectively. It paid $8.29 million, $7.50 million and $6.54 million as dividends during 2021, 2020 and 2019, respectively.

Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business. These initiatives not only instill investors’ confidence but also positively impact earnings per share.

Other Stocks to Consider

Some other well-ranked stocks in the broader Zacks Business Services sector are Automatic Data Processing, Inc. (ADP - Free Report) and Clean Harbors, Inc. (CLH - Free Report) .

Automatic Data Processing carries a Zacks Rank #2, presently. ADP has a long-term earnings growth expectation of 12%.

ADP delivered a trailing four-quarter earnings surprise of 3.5%, on average.

Clean Harbors carries a Zacks Rank of 2 at present. CLH’s 2022 earnings surged 99.5% in the year over year.

CLH delivered a trailing four-quarter earnings surprise of 38.2%, on average.
 

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