Charles River Laboratories International (NYSE:CRL) offers animal research models, principally purpose-bred rats, mice and other rodents required in research and development for new drugs, devices and therapies. It also manages drug trials.

The firm surprised the Street last month when it guided 2006 non-GAAP earnings per share to $2.15-$2.21 from a previous guidance of $2.12-$2.18. Analysts had been looking for $2.19. Management also guided 2007 non-GAAP EPS to $2.43-$2.53, versus consensus of $2.48. The stock's shares popped on the news and have since been defining a bullish "flag" consolidation pattern. Equities frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with two "strong buys", one "buy" and eight "holds". Analysts see a fourteen percent growth rate, through the next year. The CRL P/E ratio (21.57), PEG ratio (1.54), Price to Sales ratio (2.68), Price to Book ratio (1.86), Price to Cash Flow ratio (11.86) and Net Profit Margin (13.52%) compare favorably with industry, sector and S&P 500 averages.

The stock is one of those used to calculate the S&P 400 MidCap Index. Institutional investors hold about 95 percent of the outstanding shares. Over the past twelve months, CRL has traded between $33.73 and $51.50. A stop-loss of $38.00 could look good here. Note that the firm is next expected to report quarterly results in early February.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.