Have you been paying attention to shares of CRA International (CRAI)? Shares have been on the move with the stock up 10.3% over the past month. The stock hit a new 52-week high of $208.38 in the previous session. CRA International has gained 104.9% since the start of the year compared to the 24.6% move for the Zacks Business Services sector and the 20.1% return for the Zacks Consulting Services industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 31, 2024, CRA reported EPS of $1.77 versus consensus estimate of $1.58 while it beat the consensus revenue estimate by 0.55%.

For the current fiscal year, CRA is expected to post earnings of $7.03 per share on $676.16 million in revenues. This represents a 28.75% change in EPS on an 8.36% change in revenues. For the next fiscal year, the company is expected to earn $7.40 per share on $697.78 million in revenues. This represents a year-over-year change of 5.3% and 3.2%, respectively.

Valuation Metrics

CRA may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

CRA has a Value Score of B. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 28.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 26.1X. On a trailing cash flow basis, the stock currently trades at 21.7X versus its peer group's average of 20.7X. Additionally, the stock has a PEG ratio of 1.8. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, CRA currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.