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6 Reasons to Bet on Charles River Associates (CRAI) Stock

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Charles River Associates (CRAI - Free Report) performed well year to date and has the potential to carry the momentum forward. Therefore, if you have not taken advantage of the 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.

Share Price Performance: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. Charles River has gained 30.1% compared with the 28.7% growth of the Zacks S&P 500 composite.

Solid Rank: Charles River carries a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: Three estimates for 2019 moved north over the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2019 climbed 13.1%.

Positive Earnings Surprise History: Charles River has an impressive earnings surprise history. The company outpaced the consensus mark in three of the trailing four quarters, the average beat 18.3%.

Solid Prospects: The Zacks Consensus Estimate for 2019 earnings is pegged at $3.03, indicating year-over-year growth of 10.2%. Moreover, earnings are expected to register 9% growth in 2020. The stock has a long-term expected earnings growth rate of 13%.

Growth Factors: Charles River 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.

Charles River Associates Revenue (TTM)

The key areas of focus for this consulting services 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 the company’s commitment to create shareholders’ value and underline its confidence in its business.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Cardtronics , Global Payments (GPN - Free Report) and Mastercard (MA - Free Report) . While Cardtronics sports a Zacks Rank #1, Global Payments and Mastercard carry a Zacks Rank #2.

Long-term expected EPS (three to five years) growth rate for Global Payments, Mastercard and Cardtronics is 18.1%, 16% and 4%, respectively.

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