Our buy recommendation today is expected to grow earnings by more than 26% this year. We are also selling two previous ideas.
Buy: CRA International, Inc. (CRAI)
From Upside
CRA International is expected to report June-quarter results on Aug. 7, with the three-analyst consensus calling for per-share profits of $0.93, up 16%. Revenue is projected to hit $138 million, up 12%. The company has topped consensus profit estimates in seven of the last eight quarters. Notably, March-quarter earnings surged 63% and exceeded Wall Street expectations by 66%—the largest surprise since 2017.
The stock’s Quadrix Overall score is 92, helped by an 88 in Earnings Estimates and 91 in Momentum.
Founded in 1965, CRA specializes in legal, business, and management consulting. The company is primarily retained for mergers and acquisitions, major product launches, capital investments, and complex litigation.
CRA is benefiting from improve operating efficiency and a growing workforce—areas we’ll scrutinize on upcoming earnings releases. In the March quarter, utilization reached 76%, up from 71% a year earlier. The consultant count hit 837, up 5%. The stock is a Best Buy.
Richard J. Moroney, CFA, Upside, upsidestocks.com, 800-233-5922, August 2021
Sell: Central Garden & Pet Company (CENT)
From Upside
Updated from Wall Street’s Best Digest 832, August 27, 2020
Central Garden & Pet is being downgraded to Sell. The specialty retailer is reasonably valued, reflected in a Value score of 72. But our enthusiasm for the stock has faded, partly because the company faces tough comparisons as it laps outsized revenue and earnings growth at the start of the pandemic.
Richard J. Moroney, CFA, Upside, upsidestocks.com, 800-233-5922, August 2021
Sell: H.B. Fuller Company (FUL)
From Upside
Updated from Wall Street’s Best Digest 841, May 20, 2021
We dropped coverage of H.B. Fuller because of its weak stock-price action and low Quadrix® scores. The stock has slumped 6% over the past three months, helping push the Performance score down to 27. The Overall score is 50, down from 89 at the end of March.
Richard J. Moroney, CFA, Upside, upsidestocks.com, 800-233-5922, August 2021