Charles River(US:CRL) ZACKS·2026-01-06 18:00Core Viewpoint - Charles River Laboratories (CRL) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Charles River reflects an improved earnings outlook, which is expected to positively impact its stock price [4][6]. Impact of Earnings Estimate Revisions - There is a strong correlation between changes in earnings estimates and near-term stock price movements, with institutional investors using these estimates to determine fair value [5][7]. - For Charles River, rising earnings estimates and the rating upgrade indicate an improvement in the company's underlying business, likely leading to higher stock prices [6]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - The upgrade to Zacks Rank 2 places Charles River in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10][11]. Earnings Estimate for Charles River - Charles River is expected to earn $10.22 per share for the fiscal year ending December 2025, with a 1.1% increase in the Zacks Consensus Estimate over the past three months [9].