Here's Why You Should Hold on to Charles River Stock Now

ACN CRAI BAH SPGI

CRA International, Inc. that conducts business as Charles River Associates (CRAI - Free Report) has an impressive Growth Score of B. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.

CRA’s long-term (five years) earnings growth is pegged at 13%. Earnings for 2019 and 2020 are expected to grow 10.2% and 9%, respectively.

The company’s shares have gained 37.6% over the past year, outperforming the 32.9% growth of the industry it belongs to.

Factors Aiding the Stock

CRA has a strong international presence that enables it to work with world’s leading professionals on multiple aspects. This helps the company to enhance its knowledge base and areas of functional expertise, and contributes significantly to top-line growth.

The key areas of focus for the company are generating balanced and profitable growth across the organization through optimum organic and inorganic means, strengthening client relationships and simplifying internal processes. These activities augur well for its long-term growth.

A consistent track record of dividend payout and share repurchase indicates CRA’s commitment to create shareholders’ value and underline confidence in its business.

Some Risks

CRA remains vulnerable to foreign exchange risk. Currency exchange rates had a negative impact of $1.1 million on its revenues in the third quarter of 2019. Seasonality weighs on the company’s top line. Billable hours are less during the third and fourth quarters as a large number of consultants are on vacations.

Zacks Rank & Stocks to Consider

CRA currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector are S&P Global (SPGI - Free Report) , Accenture (ACN - Free Report) and Booz Allen Hamilton (BAH - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected EPS (three to five years) growth rate for S&P Global, Accenture and Booz Allen is 10%, 10.3% and 13%, respectively.

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