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Wilmington, Massachusetts-based Charles River Laboratories International, Inc. (CRL) provides drug discovery, non-clinical development, and safety testing services. Valued at $9.5 billion by market cap, the company offers animal research models in research and development for new drugs, devices, and therapies, serving pharmaceutical and biotechnology companies, hospitals, and academic institutions worldwide.
Companies worth $2 billion or more are generally described as “mid-cap stocks,” and CRL fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the diagnostics & research industry. With a history dating back to 1947, the company is a leader in providing animal models for laboratory testing, solidifying its position as a one-stop-shop for pharmaceutical and biotechnology companies. CRL's reputation for quality and reliability has made it a trusted partner in the highly regulated pharmaceutical industry.
Despite its notable strength, CRL slipped 32.3% from its 52-week high of $275, achieved on Mar. 8. Over the past three months, CRL stock has declined 6.1%, outperforming the Health Care Select Sector SPDR Fund’s (XLV) 9.2% losses during the same time frame.
In the longer term, shares of CRL fell 10.2% over the past six months and dipped 22.1% over the past 52 weeks, underperforming XLV’s six-month losses of 4.7% and 2.3% returns over the last year.
To confirm the bearish trend, CRL has been trading below its 50-day moving average since early April, with some fluctuations. The stock is trading below its 200-day moving average since late May, experiencing some fluctuations.
On Nov. 6, CRL shares closed up more than 13% after reporting its Q3 results. Its adjusted EPS of $2.59 exceeded Wall Street expectations of $2.43. The company’s revenue was $1 billion, beating Wall Street forecasts of $977.2 million. CRL expects full-year adjusted EPS to be between $10.10 and $10.30.
In the competitive arena of diagnostics & research, Medpace Holdings, Inc. (MEDP) has taken the lead over CRL, showing resilience with 9.3% gains over the past 52 weeks. However, MEDP lagged behind the stock with a 19.6% dip over the past six months.
Wall Street analysts are cautious on CRL’s prospects. The stock has a consensus “Hold” rating from the 17 analysts covering it, and the mean price target of $213.73 suggests a potential upside of 14.8% from current price levels.
