<!-- HTML_TAG_START -->NasdaqGS:CRAI Earnings and Revenue Growth December 22nd 2024<!-- HTML_TAG_END -->
CRA International, Inc. (NASDAQ:CRAI), might not be a large cap stock, but it saw a decent share price growth of 11% on the NASDAQGS over the last few months. While good news for shareholders, the company has traded much higher in the past year. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Today we will analyse the most recent data on CRA International’s outlook and valuation to see if the opportunity still exists.
Check out our latest analysis for CRA International
Great news for investors – CRA International is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $267.94, but it is currently trading at US$185 on the share market, meaning that there is still an opportunity to buy now. However, given that CRA International’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. CRA International’s earnings over the next few years are expected to increase by 24%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
Are you a shareholder? Since CRAI is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on CRAI for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy CRAI. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
