Is It Time To Consider Buying Charles River Laboratories International, Inc. (NYSE:CRL)?

Let's talk about the popular Charles River Laboratories International, Inc. (NYSE:CRL). The company's shares received a lot of attention from a substantial price increase on the NYSE over the last few months. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine Charles River Laboratories International’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for Charles River Laboratories International

What's The Opportunity In Charles River Laboratories International?

According to our valuation model, Charles River Laboratories International seems to be fairly priced at around 14% below our intrinsic value, which means if you buy Charles River Laboratories International today, you’d be paying a fair price for it. And if you believe that the stock is really worth $240.68, then there’s not much of an upside to gain from mispricing. So, is there another chance to buy low in the future? Given that Charles River Laboratories 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 an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What kind of growth will Charles River Laboratories International generate?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 24% over the next couple of years, the future seems bright for Charles River Laboratories International. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? CRL’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on CRL, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Charles River Laboratories International, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for Charles River Laboratories International and we think they deserve your attention.

If you are no longer interested in Charles River Laboratories International, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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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.