Shares of
Charles River Associates
CRAI
have returned 44% over the past year, outperforming 34.7% growth of the
industry
it belongs to in the said time frame.
Image Source: Zacks Investment Research
Let’s delve into factors that have contributed to the company’s price performance:
Consecutive Earnings & Revenue Beat
Charles River reported better-than-expected earnings and revenue performance in four of the last five quarters. While improvement in operational performance has been aiding the company’s bottom line, strength across its Antitrust & Competition Economics, Auctions & Competitive Bidding, Energy, Financial Economics, Intellectual Property, Labor & Employment, Marakon, and Risk, Investigations & Analytics practices benefited the top line.
Solid International Presence
Charles River 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 enhance its knowledge base and areas of functional expertise. The majority of the company’s clients are multinational firms facing complicated issues. We believe that Charles River’s international operations help expand its geographic footprint and contribute significantly to the top line
Diversified Business Model
Charles River has a diversified business with service offerings across areas of functional expertise, client base and geographical regions. Being proficient in multiple industries helps the company 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 numerous fields under one platform. The diversification in its business helps reduce the company’s dependence on any specific market, industry or geographic area. It also increases the company’s ability to adapt to changing conditions.
Zacks Rank and Stocks to Consider
Charles River 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
Business Services
sector that investors may consider are
Cross Country Healthcare (
CCRN
),
Accenture (
ACN
) and
Republic Services
RSG
. While Cross Country Healthcare and Accenture sport a Zacks Rank #1, Republic Services carries a Zacks Rank #2 (Buy).
Cross Country Healthcare has an expected earnings growth rate of 447.8% for the current year. The company has delivered a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 144% in the past year. The company has a long-term earnings growth of 21.5%.
Accenture has an expected earnings growth rate of 19.7% for the current year. The company has delivered a trailing four-quarter earnings surprise of 5.3%, on average.
Accenture’s shares have surged 38.9% in the past year. The company has a long-term earnings growth of 10%.
Republic Services has an expected earnings growth rate of 10.7% for the current year. The company has delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Republic Services’ shares have surged 37.2% in the past year. The company has a long-term earnings growth of 10.9%.
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