From Nasdaq: 2025-02-14 05:47:00

Charles River Laboratories International, Inc. continues to grow in its DSA segment, offering drug discovery and safety testing services. Despite macroeconomic challenges, the company’s RMS segment sees growth in all regions. However, the stock has dropped 37.5% in the past year compared to industry and S&P 500 performance.

With a market cap of $7.87 billion, Charles River has surpassed earnings estimates in the last four quarters. The company benefits from being the largest provider of outsourced drug discovery services globally, with strategic collaborations driving growth. Yet, margin pressure and competition pose challenges for the company’s profitability and market position.

Charles River’s RMS segment shows promise, with strong growth in insourcing solutions. Revenues for small models are increasing globally, especially in China and Europe. However, macroeconomic pressures and acquisition costs impact margins. The company faces stiff competition in the global market, affecting its market cap and profitability.

Analysts estimate a 2.5% decrease in Charles River’s 2024 revenues, with an earnings estimate of $10.16 per share. In the medical space, stocks like Boston Scientific, Veracyte, and Phibro Animal Health show promise. Boston Scientific has a Zacks Rank #1, while Veracyte and Phibro Animal Health hold Zacks Rank #1 and #2, respectively, indicating strong growth potential.



Read more at Nasdaq: Is Now the Right Time to Hold on to Charles River Stock?