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Valued at a market cap of $7.3 billion, Charles River Laboratories International, Inc. (CRL) provides drug discovery, non-clinical development, and safety testing services worldwide. Headquartered in Wilmington, Massachusetts, the company operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing).
Companies valued between $2 billion and $10 billion are generally classified as “mid-cap stocks," and Charles River Laboratories fits this criterion perfectly. The company helps pharmaceutical and biotechnology companies, government agencies, and leading academic institutions around the globe accelerate their research and drug development efforts by providing essential products and services.
Charles River Laboratories' stock has dropped 41.6% from its 52-week high of $254.15. Shares of CRL have decreased 11.1% over the past three months, underperforming the S&P 500 Index’s ($SPX) 5.6% rise.
Longer term, CRL stock has dipped 19.6% on a YTD basis, whereas the SPX has risen 3.6%. Additionally, shares of Charles River Laboratories have declined 29.3% over the past 52 weeks, significantly lagging behind the SPX's 11.8% return over the same time frame.
The stock has been trading below its 50-day and 200-day moving averages since August last year. Yet, it has risen above its 50-day moving average since mid-May.
CRL stock jumped 18.7% following the release of its better-than-expected Q1 2025 earnings on May 7. Although revenue declined 2.7% year-over-year to $984.2 million due to weakness across all segments, it still surpassed consensus estimates. Its operating margin improved to 19.1% from 18.5%, supported by cost savings from restructuring efforts. Its adjusted EPS grew 3.1% from the year-ago quarter to $2.34, also surpassing the Wall Street expectations.
Looking ahead, the company raised its 2025 adjusted EPS guidance to a range of $9.30 to $9.80, reflecting stronger net bookings in the DSA segment.
In contrast, Labcorp Holdings Inc. (LH) has surpassed CRL stock. Shares of LH have soared 14.5% on a YTD basis and 26.2% over the past 52 weeks.
Despite CRL's underperformance, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 15 analysts covering it, and it is currently trading below the mean price target of $158.64.
