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Valued at a market cap of $10.6 billion, Charles River Laboratories International, Inc. (CRL) provides drug discovery, non-clinical development, and safety testing services. The Wilmington, Massachusetts-based company provides essential products and services to help pharmaceutical and biotechnology companies, government agencies, and leading academic institutions accelerate their research and drug development efforts.
Companies valued at $10 billion or more are generally described as “large-cap” stocks, and Charles River Laboratories fits this criterion perfectly. The company has 150 facilities, operates in 21 countries, and employs more than 21,000 people worldwide. It provides support in various fields, including fundamental research, drug discovery, safety and efficacy, clinical support, and manufacturing.
Shares of CRL are trading 25.2% below their 52-week high of $275, which they reached on Mar. 8. The pharmaceutical company has declined 2.8% over the past three months, lagging behind the broader Dow Jones Industrials Average’s ($DOWI) 7.5% gain over the same time frame.
In the longer term, CRL stock is down nearly 13% on a YTD basis, significantly lagging behind DOWI’s 11.6% gains. Moreover, shares of CRL have gained 3.1% over the past 52 weeks, underperforming DOWI’s 22.1% returns over the same time frame.
To confirm its bearish trend, CRL has been trading below its 200-day and 50-day moving average since early August.
On Aug. 7, shares of CRL fell 12.6% following its Q2 earnings release, primarily due to the company’s lowered full-year 2024 revenues and earnings guidance. It expects full-year earnings between $9.90 and $10.20 per share. CRL reported earnings of $2.80 per share, which surpassed Wall Street estimates of $2.39. Moreover, its revenue matched the street forecast of $1.03 billion.
CRL has also lagged behind its rival, IQVIA Holdings Inc. (IQV), which gained 17.9% over the past 52 weeks and 4.6% on a YTD basis.
Despite CRL’s underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $221 suggests a premium of 7.4% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
