CRA International (CRAI): Assessing Valuation After Earnings Beat, Guidance Raise, and Dividend Hike

CRA International delivered a strong set of third-quarter results, with both revenue and earnings surpassing expectations. The company raised its full-year outlook and boosted its quarterly dividend by 16%, moves that highlight management’s positive view of future performance.

See our latest analysis for CRA International.

CRA International’s upbeat earnings and dividend hike have sparked renewed investor interest, pushing the share price up 3.7% in a single day and signaling strong momentum. While the stock’s 1-year total shareholder return is a modest 2.5%, its returns over three and five years—66% and 367% respectively—underscore the company’s ability to deliver for long-term investors, even in periods of near-term volatility.

If CRA’s blend of stability and growth appeals to you, now could be the perfect time to broaden your search and discover fast growing stocks with high insider ownership

With shares trading well below analyst price targets and the business delivering consistent growth, the big question now is whether CRA International represents a compelling value, or if the company’s strong outlook is already reflected in the current share price.

Most Popular Narrative: 22.9% Undervalued

With CRA International’s fair value set at $239.50, substantially above the last close of $184.70, there is a sizeable upside baked into the most widely followed valuation narrative. This view leans on the company’s future growth catalysts and pricing power currently recognized by industry watchers.

Rising regulatory complexity and global M&A activity are fueling demand for CRA's specialized advisory services, supporting sustained growth and premium pricing. Investments in talent, technology, and leadership position CRA to capture high-value opportunities in dynamic markets, driving long-term margin and revenue expansion.

Read the complete narrative.

Want to uncover the logic behind that valuation gap? The most watched narrative hints at ambitious revenue growth, margin shifts, and a bold profit multiple. Which variable plays the biggest part in justifying this target? Find out which hidden drivers make or break CRA’s future value story.

Result: Fair Value of $239.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent talent retention challenges or a major slowdown in global M&A activity could undermine CRA International’s robust outlook and growth narrative.

Find out about the key risks to this CRA International narrative.

Build Your Own CRA International Narrative

If you’d like to look at the numbers from your own angle and challenge the prevailing narrative, you can easily create your perspective in just a few minutes, then Do it your way

A great starting point for your CRA International research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Don’t miss the next breakout opportunity and give your portfolio an edge. Let Simply Wall Street’s powerful screeners help you spot what others overlook.

• Upgrade your income potential and target companies offering attractive yields by starting with these 24 dividend stocks with yields > 3%.
• Tap into the next big wave in healthcare with exclusive insights from these 34 healthcare AI stocks, which merge artificial intelligence and medical innovation.
• Capture momentum in emerging tech by seizing early opportunities found among these 3582 penny stocks with strong financials that show financial strength and growth.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com