2 Reasons to Watch CRAI and 1 to Stay Cautious

CRA currently trades at $213.96 and has been a dream stock for shareholders. It’s returned 258% since January 2021, more than tripling the S&P 500’s 77% gain. The company has also beaten the index over the past six months as its stock price is up 22.5% thanks to its solid quarterly results.

Is now still a good time to buy CRAI? Or are investors being too optimistic? Find out in our full research report, it’s free.

Why Does CRAI Stock Spark Debate?

Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ:CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy.

Two Positive Attributes:

1. Long-Term Revenue Growth Shows Strong Momentum

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, CRA grew its sales at a solid 8.3% compounded annual growth rate. Its growth surpassed the average business services company and shows its offerings resonate with customers.

2. Outstanding Long-Term EPS Growth

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

CRA’s EPS grew at an astounding 20.9% compounded annual growth rate over the last five years, higher than its 8.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

One Reason to be Careful:

Free Cash Flow Margin Dropping

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

As you can see below, CRA’s margin dropped by 9.5 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. CRA’s free cash flow margin for the trailing 12 months was 3.9%.

Final Judgment

CRA’s positive characteristics outweigh the negatives, and with its shares beating the market recently, the stock trades at 23.9× forward P/E (or $213.96 per share). Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.