Charles River Laboratories: Stay The Course

Summary:

- Charles River's stock has underperformed the S&P 500 so far in 2019.

- I believe that Charles River is well-positioned for 2020 and beyond, and the company's recent operating results tell the same story.

- Long-term shareholders should consider staying the course because, in my opinion, CRL shares will outperform the broader market over the next 18-24 months.

Charles River Laboratories' ($CRL) stock has not performed well so far in 2019, as CRL shares have underperformed the broader market by almost 4 percentage points over the last 9-plus months.

I, however, believe that the underperformance has created a long-term buying opportunity because, in my opinion, Charles River's most recent operating results, especially from a revenue standpoint, show that this Contract Research Organization ("CRO") company is well-positioned for 2020 and beyond.