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Charles River Laboratories International, Inc. (CRL) Hit a 52 Week High, Can the Run Continue?

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A strong stock as of late has been Charles River Laboratories (CRL - Free Report) . Shares have been marching higher, with the stock up 11.3% over the past month. The stock hit a new 52-week high of $208.69 in the previous session. Charles River has gained 4.4% since the start of the year compared to the 5.4% gain for the Zacks Medical sector and the 10% return for the Zacks Medical Services industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 5, 2025, Charles River reported EPS of $2.43 versus consensus estimate of $2.32.

For the current fiscal year, Charles River is expected to post earnings of $10.72 per share on $4.01 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $11.54 per share on $4.07 in revenues. This represents a year-over-year change of 4.92% and 1.53%, respectively.

Valuation Metrics

Charles River may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

Charles River has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 19.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.1X. On a trailing cash flow basis, the stock currently trades at 9.6X versus its peer group's average of 11.1X. Additionally, the stock has a PEG ratio of 6.23. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Charles River currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Charles River meets the list of requirements. Thus, it seems as though Charles River shares could have potential in the weeks and months to come.

How Does CRL Stack Up to the Competition?

Shares of CRL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is BrightSpring Health Services, Inc. (BTSG - Free Report) . BTSG has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of F.

Earnings were strong last quarter. BrightSpring Health Services, Inc. beat our consensus estimate by 11.11%, and for the current fiscal year, BTSG is expected to post earnings of $1.40 per share on revenue of $12.71 billion.

Shares of BrightSpring Health Services, Inc. have gained 13.7% over the past month, and currently trade at a forward P/E of 28.12X and a P/CF of 20.98X.

The Medical Services industry may rank in the bottom 67% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for CRL and BTSG, even beyond their own solid fundamental situation.


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