At the latest market close, Medpace (MEDP) hit $443, up +1.84% from the previous day. The stock outperformed the S&P 500, which gained 0.55% on the day. Meanwhile, the Dow gained 0.62% and the tech-heavy Nasdaq added 0.63%.
Heading into today, shares of the outsourced clinical development services provider had gained 10.38% over the past month, while the Healthcare sector had gained 0.19%, while the S&P 500 had gained 4.28% in that same time period.
Market participants will be keeping a close eye on Medpace’s upcoming financial results. The company is scheduled to release its earnings on July 22, 2024. In that report, analysts expect Medpace to post earnings of $2.52 per share, which would represent year-over-year growth of 30.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $529.73 million, up 14.94% from the same period last year.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.29 per share and revenue of $2.17 billion, which would represent increases of +27.14% and +14.92%, respectively, from the prior year.
Additionally, investors should also note any recent revisions to analyst estimates for Medpace. These recent revisions tend to reflect changing near-term business trends. With this in mind, positive estimate revisions can be viewed as a sign of optimism for the company’s business outlook.
Empirical research shows that these estimate revisions are directly correlated with future stock price movements, and to take advantage of this, we have developed the Zacks Rank, a proprietary model which takes these estimate revisions into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a proven, outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained stagnant. Medpace currently has a Zacks Rank #2 (Buy).
Looking at valuation, Medpace has a Forward P/E ratio of 38.55, which marks a premium compared to its industry’s average Forward P/E ratio of 19.68.
It’s also important to note that MEDP currently has a PEG ratio of 2.15. The PEG ratio is similar to the commonly-used P/E ratio, but this metric also incorporates the company’s expected earnings growth rate. As of yesterday’s market close, the average PEG ratio in the Medical Services industry was 1.53.
The Medical Services industry is a part of the Healthcare sector. This group has a Zacks Industry Rank of #102, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the vitality of our particular industry groups by calculating the average Zacks Rank of the individual stocks included in the groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to monitor all of these indicators and more impacting stocks through the coming trading sessions using Zacks.com.
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Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report
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