Medpace (MEDP) Advances But Underperforms Market: Key Facts

Medpace (MEDP) ended the recent trading session at $395.95, demonstrating a +0.52% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.95%.

Heading into today, shares of the provider of outsourced clinical development services had gained 0.16% over the past month, lagging the Medical sector's gain of 1.49% and the S&P 500's gain of 3.71% in that time.

The investment community will be paying close attention to the earnings performance of Medpace in its upcoming release. The company is expected to report EPS of $2.52, up 30.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $529.73 million, up 14.94% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.29 per share and a revenue of $2.17 billion, representing changes of +27.14% and +14.92%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Medpace. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Medpace possesses a Zacks Rank of #2 (Buy).

Investors should also note Medpace's current valuation metrics, including its Forward P/E ratio of 34.91. Its industry sports an average Forward P/E of 18.95, so one might conclude that Medpace is trading at a premium comparatively.

It's also important to note that MEDP currently trades at a PEG ratio of 1.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Medical Services industry stood at 1.49 at the close of the market yesterday.

The Medical Services industry is part of the Medical sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Zacks’ Top 3 Hydrogen Stocks

Demand for clean hydrogen energy is projected to reach $500 billion by 2030 and grow 5-FOLD by 2050. Want in? Zacks has targeted 3 diversified titans that could lead the way to becoming hydrogen powerhouses.

One has crushed the market over the past 25 years – up +2,400% to +380%.

Another already has capital commitments of $15 billion for low carbon hydrogen products through 2027 alone.

Our third pick soared to 52-week highs in Q4 2023 and has raised its dividend every year for over a decade.

See Stocks Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.