Press Release: Charles River Associates (Cra) To Participate In Noble Capital Markets Virtual Conference On February 4

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 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.

What Happened?

A number of stocks jumped in the afternoon session after President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies. 

The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off.Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Business Process Outsourcing & Consulting company CRA jumped 2.8%. Is now the time to buy CRA? Access our full analysis report here, it’s free.
• Electronic Components & Manufacturing company Flex jumped 4.1%. Is now the time to buy Flex? Access our full analysis report here, it’s free.
• IT Distribution & Solutions company ePlus jumped 2.6%. Is now the time to buy ePlus? Access our full analysis report here, it’s free.
• IT Distribution & Solutions company TD SYNNEX jumped 2.7%. Is now the time to buy TD SYNNEX? Access our full analysis report here, it’s free.

Zooming In On Flex (FLEX)

Flex’s shares are very volatile and have had 20 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 9 months ago when the stock gained 8.2% on the news that President Trump clarified that he had no intention of removing Federal Reserve Chair Jerome Powell, a statement that helped calm markets. 

Earlier remarks had sparked fears of political interference in decision making at the central bank. With Trump walking back his earlier comments, investors likely felt more assured that monetary policy decisions will continue to be guided by data, not drama. That kept the Fed's word credible, and more importantly, gave investors a steadier compass to figure out where rates and the markets were headed next. 

Adding to the positive news, the president made constructive comments on US-China trade talks, noting that the tariffs imposed on China were "very high, and it won't be that high. ... No, it won't be anywhere near that high. It'll come down substantially. But it won't be zero."Also, a key force at the center of the stock market's massive two-day rally was the frantic behavior of short sellers covering their losses. Hedge fund short sellers recently added more bearish wagers in both single stocks and securities tied to macro developments after the whipsaw early April triggered by President Donald Trump's tariff rollout and abrupt 90-day pause, according to Goldman Sachs' prime brokerage data. The increased short position in the market created an environment prone to dramatic upswings due to this artificial buying force. A short seller borrows an asset and quickly sells it; when the security decreases in price, they buy it back more cheaply to profit from the difference.

Flex is up 4.6% since the beginning of the year, and at $66.62 per share, it is trading close to its 52-week high of $72.08 from December 2025. Investors who bought $1,000 worth of Flex’s shares 5 years ago would now be looking at an investment worth $3,437.

What Happened?

Shares of economic consulting firm CRA International jumped 6.4% in the afternoon session after an analyst at Barrington Research raised the price target on the stock while maintaining an "Outperform" rating. 

The analyst, Kevin Steinke, increased the price target to $245.00 from a previous $239.00. This move signaled increased confidence in the company's performance. The positive sentiment was supported by expectations for the company's revenue to continue growing, driven primarily by its consulting and research services.

What Is The Market Telling Us

CRA’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 2 months ago when the stock gained 6.1% on the news that the company reported strong third-quarter financial results that beat expectations and raised its full-year guidance. 

The consulting firm posted revenue of $185.9 million, a 10.8% increase from the same period last year, surpassing analyst forecasts. Adjusted earnings per share came in at $2.06, which also topped Wall Street estimates. Building on this positive performance, the company slightly lifted its revenue outlook for the full year to a midpoint of $744 million, signaling confidence in its business prospects.

CRA is up 5.9% since the beginning of the year, and at $212.39 per share, has set a new 52-week high. Investors who bought $1,000 worth of CRA’s shares 5 years ago would now be looking at an investment worth $4,239.

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the business process outsourcing & consulting industry, including Genpact and its peers.

The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled consultants and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly.

The 8 business process outsourcing & consulting stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 6% on average since the latest earnings results.

Genpact

Originally spun off from General Electric in 2005 to provide business process services, Genpact is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions.

Genpact reported revenues of $1.29 billion, up 6.6% year on year. This print exceeded analysts’ expectations by 2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ constant currency revenue estimates and a beat of analysts’ EPS estimates.

Interestingly, the stock is up 24.4% since reporting and currently trades at $47.78.

Best Q3: CRA

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

CRA reported revenues of $185.9 million, up 10.8% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with a beat of analysts’ EPS and revenue estimates.

The market seems happy with the results as the stock is up 13.8% since reporting. It currently trades at $202.27.

Weakest Q3: Concentrix

With a team of approximately 450,000 employees across 75 countries, Concentrix designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Concentrix reported revenues of $2.48 billion, up 4% year on year, exceeding analysts’ expectations by 1%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS guidance for next quarter estimates.

As expected, the stock is down 27.8% since the results and currently trades at $39.70.

Read our full analysis of Concentrix’s results here.

FTI Consulting

With a team of experts deployed across 30+ countries to tackle complex business challenges, FTI Consulting is a global business advisory firm that helps organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, and regulatory matters.

FTI Consulting reported revenues of $956.2 million, up 3.3% year on year. This result surpassed analysts’ expectations by 1.2%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

FTI Consulting had the slowest revenue growth among its peers. The stock is up 9.7% since reporting and currently trades at $170.86.

Read our full, actionable report on FTI Consulting here, it’s free for active Edge members.

Exponent

With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries.

Exponent reported revenues of $137.1 million, up 9.6% year on year. This number topped analysts’ expectations by 4%. It was a very strong quarter as it also logged a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Exponent achieved the biggest analyst estimates beat among its peers. The stock is up 11.1% since reporting and currently trades at $74.21.

Read our full, actionable report on Exponent here, it’s free for active Edge members.