Charles River Laboratories International (CRL) is Expected to Gain as Industry Growth Resumes

Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. The equity portfolio returned 4.67% in the second quarter compared to 10.94% for the S&P 500 Index. An underweight in technology stocks and an overweight in value and mid-cap stocks led to the underperformance of the fund. The fixed income portfolio returned 1.97% compared to 1.21% for the Bloomberg U.S. Aggregate Bond Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Oakmark Equity and Income Fund highlighted stocks such as Charles River Laboratories International, Inc. (NYSE:CRL). Charles River Laboratories International, Inc. (NYSE:CRL) offers drug discovery, non-clinical development, and safety testing services that operate through Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing) segments. The one-month return of Charles River Laboratories International, Inc. (NYSE:CRL) was 8.96%, and its shares lost 30.47% of their value over the last 52 weeks.  On July 14, 2025, Charles River Laboratories International, Inc. (NYSE:CRL) stock closed at $158.04 per share with a market capitalization of $7.762 billion.

Oakmark Equity and Income Fund stated the following regarding Charles River Laboratories International, Inc. (NYSE:CRL) in its second quarter 2025 investor letter:

“Charles River Laboratories International, Inc. (NYSE:CRL) is the world’s leading provider of research models and other services for preclinical research and drug development. In our view, the company has a wide competitive moat which enables consistently high returns on capital. It also has a history of strong organic growth due to increases in biopharma R&D spending, market share gains and an ongoing trend toward outsourcing preclinical R&D. Near-term cyclical headwinds and concerns over research model alternatives have weighed on sentiment, providing us an opportunity to purchase shares at an unusually low multiple of current earnings. We believe the company is well-positioned to benefit when industry growth returns to normal and has other opportunities to unlock shareholder value, particularly through their recently announced strategic review. We were happy to purchase shares well below our estimate of intrinsic value.”

In another article, we covered Charles River Laboratories International, Inc. (NYSE:CRL) and shared Polen US SMID Company Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.