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Why You Should Hold CRA International (CRAI) In Portfolio

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CRA International, Inc. (CRAI - Free Report) is benefiting from a strong global presence and investor-friendly steps.

CRAI’s 2023 revenues are expected to improve 4% from the year-ago reported figures. Shares of CRAI have surged 33.9% in the past year against the 7.2% plunge of the industry it belongs to.

Zacks Investment Research
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Factors That Augur Well

CRA International 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 to enhance its knowledge base and areas of functional expertise.

The majority of CRAI’s clients are multinational firms facing complicated issues. We believe that the company’s international operations help expand its geographic footprint and contribute significantly to the top line.

We are impressed with CRA International’s consistent record of returning value to shareholders in form of dividends 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 in 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.

Some Risks

CRA International’s current ratio at the end of third-quarter 2022 was pegged at 1.11, lower than the current ratio of 1.17 reported at the end of the previous quarter. Decreasing current ratio is not desirable as it indicates that the company may have problems meeting its short-term debt obligations.

Zacks Rank and Stocks to Consider

CRA International currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Paychex, Inc. (PAYX - Free Report) and The Interpublic Group of Companies, Inc. (IPG - Free Report) .

Paychex carries a Zacks Rank #2 (Buy) at present. PAYX has a long-term earnings growth expectation of 7.5%.

Paychex delivered a trailing four-quarter earnings surprise of 5.9%, on average.

Interpublic currently sports a Zacks Rank #1. IPG has a long-term earnings growth expectation of 4.61%.

IPG delivered a trailing four-quarter earnings surprise of 8.2%, on average.
 


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