Reasons Why You Should Hold Charles River Stock in Your Portfolio

Charles River Associates CRAI has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 14.97%.

The company’s fourth-quarter 2025 earnings are expected to increase 1% year over year. Its 2025 and 2026 earnings are projected to rise 8.2% and 7.3%, respectively. Revenues are anticipated to grow 8.3% in 2025 and 3% in 2026.

Charles River Associates Price and EPS Surprise

Charles River Associates price-eps-surprise | Charles River Associates Quote

Factors That Bode Well for CRAI

Charles River Associates strengthened its Antitrust & Competition Economics Practice by appointing Margaret (Peggy) Loudermilk, former Assistant Chief of the Economic Regulatory Section at the U.S. Department of Justice Antitrust Division, as Vice President, thereby reinforcing its regulatory and litigation expertise amid intensifying global antitrust scrutiny.

Loudermilk brings extensive experience in merger reviews, cartel investigations and complex civil matters, strengthening CRAI’s capabilities in digital market competition as well as horizontal and vertical theories of harm. Her appointment positions the firm to capitalize on rising demand for high-level economic analysis and expert testimony as regulators tighten enforcement standards across jurisdictions.

Charles River Associates expanded its Forensic Services Practice, enhancing its capabilities in cyber breach investigations, regulatory inquiries and complex litigation support. The firm deepened its expertise in e-Discovery and digital forensics and strengthened its ability to manage high-stakes, technology-driven disputes. By broadening its forensic technology and investigative capabilities, CRAI positioned itself to capture rising demand for cybercrime response, forensic accounting, and regulatory support as digital and compliance risks continue to intensify.

The uptick in demand drove Charles River Associates to deliver a 10.8% year-over-year increase in third-quarter fiscal 2025 revenue to $185.9 million, despite a 1% decline in headcount and utilization of 77%. This reflected healthier underlying operations.

Moreover, the company returned $7.2 million to shareholders through dividends and buybacks in the third-quarter of 2025. CRAI has consistently returned value to shareholders through dividends and share repurchases. The company paid dividends of $9.6 million, $10.8 million and $12.3 million, while repurchasing shares worth $27.6 million, $31.4 million and $33.3 million in 2022, 2023, and 2024, respectively. This consistency instills investors’ confidence in the company.

CRAI: Key Risks to Watch

CRAI posted a current ratio of 0.9 in the third quarter of 2025, lower than the industry average of 1.19. A current ratio below one often suggests that a company may not be well-positioned to meet its short-term obligations.

Moreover, the company faces risks from macroeconomic uncertainty, including tariff pressures and changes in government policies that could raise input costs or delay infrastructure and public-sector projects. Trade tensions and shifting spending priorities may slow contract awards, while elevated labor costs could further pressure margins and temper growth.

CRAI’s Zacks Rank and Stocks to Consider

CRAI currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some top-ranked stocks for investors’ consideration are Robert Half Inc. RHI and Maximus MMS.

Robert Half currently carries a Zacks Rank of 2 (Buy). RHI has an expected earnings growth rate of 19.6% and 53.2% for 2026 and 2027.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

RHI has a mixed earnings surprise history as it has surpassed the Zacks Consensus Estimate in two of the trailing four quarters, met once, and missed once in the remaining, delivering an average miss of 10.9%.

Maximus carries a Zacks Rank of 2. MMS has an expected earnings growth rate of 14.4% and 1.2% for fiscal 2026 and 2027.

The company has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 25.5%.

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This article originally published on Zacks Investment Research (zacks.com).

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