Charles River Laboratories International, Inc. (CRL) $173.89
Charles River Laboratories finds itself at a crossroads, with its stock price hovering near a critical long-term support level, yet flashing overbought signals that demand investor caution.
52-wk High $228.88
📌 Investment Snapshot
- 💰 Trading at $173.89 with an $8.6B market cap, EPS at $-2.90.
- 📈 Q4 2025 revenue hit $994M, with EPS at $-5.57, indicating recent financial headwinds.
- 🔑 A perfect 100/100 Technical Confluence Score underscores strong underlying technical support, despite an overbought RSI.
- 🎯 Analysts maintain a ‘Buy’ consensus with a mean target of $199.07, suggesting 14.48% upside.
CRL currently trades at a critical juncture, resting on its 200-day moving average while flashing an overbought RSI of 68.8. Despite a perfect 100/100 Technical Confluence Score signaling robust underlying strength, the immediate overbought condition and recent price weakness suggest patience is warranted.
| 📍 Entry Zone | $163.30 – $171.66 | 🛑 Stop-Loss | $155.00 |
| 📋 Adjust If | A sustained break below $155.00 on above-average volume invalidates the current technical setup, signaling deeper downside. | ||
The Investment Case — Why Now?
Over the past 60-90 days, CRL has experienced a notable pullback, shedding 12.8% over three months, yet it now finds itself precisely at its 200-day moving average. This price action, coupled with a 100/100 Technical Confluence Score, suggests a potential inflection point where long-term support could hold, offering an attractive entry for patient investors.
However, the primary risk to this thesis lies in the overbought RSI and the recent negative EPS reported for Q4 2025. If the broader market sentiment shifts or if the upcoming earnings report fails to show a significant turnaround, CRL could easily breach its 200-day SMA, triggering further downside towards the Anchored VWAP and Volume Profile POC around the $156-$158 range.
🤔 Given the conflicting signals of strong technical support versus an overbought RSI, are you prepared to wait for a confirmed pullback before initiating a position?
🏢 Company Overview
| Detail | Value |
|---|---|
| Company | Charles River Laboratories International, Inc. |
| Ticker / Exchange | CRL / NYSE |
| Sector / Industry | Healthcare / Diagnostics & Research |
| CEO | James C. Foster |
| Founded / HQ | 1947 / Wilmington, MA |
📈 Price Action & Technicals
Golden Cross
Inside VA
A sell-side sweep at $171.93 on March 9, 2026, indicates recent institutional distribution below current price.
CRL’s current price of $173.89 sits precisely on its 200-day Simple Moving Average ($173.85), a critical support level often watched by institutional players. While the 50-day SMA ($176.73) remains above the 200-day, signaling a long-term bullish trend, the stock’s recent 12.8% decline over three months suggests a test of this key support.
The Relative Strength Index (RSI) at 68.8 screams overbought, indicating that the recent rally may be stretched and due for a pullback. Conversely, the MACD, with a value of -1.39 above its signal line of -4.26, confirms bullish momentum is building. The ADX at 44.3, with +DI significantly above -DI, further reinforces the presence of a strong underlying bullish trend.
Volume Profile analysis reveals the price is currently within the Value Area ($147.64-$181.49) but above the Point of Control ($156.11), suggesting buyers have pushed the price higher than where most volume traded. The Anchored VWAP from April 2025 at $157.58 also acts as a strong magnetic support, currently sitting 10.35% below the current price.
Recent liquidity sweeps show two sell-side events in early March, with the latest at $171.93, indicating institutional selling pressure that has been absorbed. Volume is running slightly below average at 0.93x, which could signal a lack of conviction behind the recent price action. The Bollinger Bands show the price near the upper band (82.6% percentile), reinforcing the overbought condition and suggesting a potential reversion to the mean.
🤔 With CRL at a crucial long-term support but showing overbought RSI, how much weight do you place on the perfect Technical Confluence Score for a potential bounce?
⚖ Peer P/E Comparison
| Ticker | Company | P/E (TTM) |
|---|---|---|
| CRL | Charles River Labs | N/A |
| LH | LabCorp | 18.5x |
| DGX | Quest Diagnostics | 16.2x |
| CTLT | Catalent | 25.1x |
| S&P 500 | Index Average | 21.0x |
💰 Earnings Deep Dive
| Period | Revenue | EPS | YoY |
|---|---|---|---|
| Q4 2025 | $994M | $-5.57 | N/A |
| Q3 2025 | $1.00B | $1.10 | N/A |
| Q2 2025 | $1.03B | $1.06 | N/A |
| Q1 2025 | $984M | $0.50 | N/A |
Charles River Laboratories generated $0.1B in Free Cash Flow in the latest quarter, demonstrating its ability to convert revenue into cash. The company did not report any share buybacks, suggesting a focus on operational reinvestment or debt management.
🚀 Growth Drivers — What Moves the Stock
- Biotech R&D Spending Rebound 🟢 Upside Surprise — Increased funding in the biotech sector directly translates to higher demand for CRL’s contract research and development services. A sustained rebound in venture capital and pharmaceutical R&D budgets could significantly boost CRL’s top line.
- Strategic Acquisitions & Partnerships 🟢 Upside Surprise — CRL has a history of strategic M&A to expand its service offerings and geographic reach. Future accretive acquisitions or key partnerships could unlock new revenue streams and market share, especially in specialized therapeutic areas.
- Drug Development Pipeline Growth 🟡 Priced In — A robust global drug development pipeline, particularly in areas like gene therapy, cell therapy, and oncology, drives demand for preclinical and clinical research services. CRL is well-positioned to capitalize on these long-term trends.
🤔 Considering the recent negative EPS, how confident are you that these growth drivers can translate into improved profitability in the near term?
🏦 Smart Money & Institutional Positioning
13F Holdings
| Institution | Shares (K) |
|---|---|
| Vanguard Group Inc | 5,887 |
| Blackrock Inc. | 3,754 |
| Invesco Ltd. | 2,696 |
| Allspring Global Investments Holdings, LLC | 1,995 |
| State Street Corporation | 1,871 |
Holdings reflect most recent 13F (45-day lag).
Insider Transactions
| Name | Title | Date | Type | Shares |
|---|---|---|---|---|
| FOSTER JAMES C | Chief Executive Officer | Mar 2, 2026 | Sale | 16,796 |
| GIRSHICK BIRGIT | Chief Operating Officer | Mar 4, 2026 | Sale | 328 |
| LAPLUME JOSEPH W | Officer | Mar 3, 2026 | Sale | 25 |
| MINTZ MARK | Chief Technology Officer | Jan 30, 2026 | Sale | 1,797 |
Short Interest
| Short % Float | Days to Cover |
|---|---|
| 0.1% | 3.1 |
⚠ Key Risk Factors
~5-10% revenue hit
~10-15% revenue hit
~2-5% margin erosion
~3-7% margin erosion
🎯 Guidance & Wall Street View
| High Target | Mean Target | Low Target | Analysts | Consensus |
|---|---|---|---|---|
| $265.0 | $199.07 | $155.0 | 14 | Buy |
| Firm | Rating | Target | Date | Action |
|---|---|---|---|---|
| UBS | Neutral | Feb 25, 2026 | Maintains | |
| TD Cowen | Buy | Feb 20, 2026 | Maintains | |
| Mizuho | Neutral | Feb 20, 2026 | Maintains | |
| Barclays | Overweight | Feb 19, 2026 | Maintains |
The analyst consensus points to a ‘Buy’ rating for CRL, reflecting optimism despite recent price weakness. The mean target of $199.07 suggests a 14.48% upside from current levels, with a wide range between the high of $265.0 and a low of $155.0, indicating varying degrees of conviction among firms.
📊 Bull vs Bear — Probability-Weighted Scenarios
🐂 Bull Case
- A strong rebound in biotech funding fuels increased R&D spending, directly benefiting CRL’s contract services.
- Successful integration of recent acquisitions and expansion into high-growth therapeutic areas drives market share gains and margin expansion.
📊 Base Case
Our base case assumes CRL navigates current macro headwinds with steady operational execution. We expect a gradual recovery in R&D spending, allowing CRL to maintain its market position and deliver modest revenue growth. Profitability will stabilize after the recent EPS dip, aligning with analyst consensus.
🐻 Bear Case
- Persistent high interest rates and a prolonged slowdown in biotech funding severely impact client demand and contract volumes.
- Intensified competition and unforeseen operational challenges lead to margin compression and a failure to recover from recent negative EPS.
🎯 Investor Action Plan — By Profile
Swing traders should avoid CRL for now. The overbought RSI and recent sell-side sweeps suggest a pullback is imminent. Wait for a clear break above $178.00 on strong volume, or a confirmed bounce from the $163-$171 FVG zone, before considering an entry.
Position investors should wait for CRL to cool off. The ideal entry window lies within the bullish FVG zone of $163.30-$171.66. Scale into a position if the stock tests this area with signs of buyer accumulation, setting a stop-loss below the VP POC at $155.00.
Long-term investors with conviction in CRL’s fundamental story should wait for a more favorable entry. While the stock is at SMA200 support, the overbought RSI signals near-term weakness. Consider initiating a small position if CRL dips into the $160-$170 range, building out the position on further weakness towards the Anchored VWAP at $157.58.
❓ Investor FAQ — People Also Ask
Q: Why is CRL’s RSI overbought despite recent price declines?
CRL’s RSI of 68.8 indicates that the stock has experienced a strong upward price movement over the past 14 periods, pushing it into overbought territory. This often happens after a significant dip, where a quick rebound can trigger the overbought signal even if the price is still well below its 52-week high, as seen with CRL’s -24.0% from its high.
Q: What does the 100/100 Technical Confluence Score mean for CRL?
A perfect 100/100 Technical Confluence Score signals an exceptionally strong alignment of multiple technical indicators, including VWAP, Volume Profile, Liquidity Sweeps, ADX/DMI, and FVG. This suggests robust underlying support and bullish momentum, indicating that while a short-term pullback is likely due to the overbought RSI, the long-term technical structure remains highly favorable for a rebound.
Q: Should the negative EPS in Q4 2025 be a major concern?
The negative EPS of $-5.57 in Q4 2025 is certainly a concern, contrasting sharply with positive EPS in prior quarters. This indicates a significant hit to profitability. Investors should closely monitor the upcoming earnings report on April 25, 2026, for signs of a turnaround or further deterioration, as sustained negative EPS could undermine the long-term investment thesis.
📊 How has the stock moved since this analysis?
📋 Disclaimer
This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. All data is as of April 05, 2026.
All active positions and their real-time performance are tracked on our Investment Log.
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