Medpace Holdings, Inc. (MEDP): A Bull Case Theory

We came across a bullish thesis on Medpace Holdings, Inc.  on Rocky&Turner’s Substack by James Emanuel. In this article, we will summarize the bulls’ thesis on MEDP. Medpace Holdings, Inc. 's share was trading at $475.51 as of August 29^th. MEDP’s trailing and forward P/E were 35.33 and 34.84 respectively according to Yahoo Finance.

Medpace Holdings (Nasdaq: MEDP) is a Cincinnati-based Contract Research Organization (CRO) that has established itself as a high-quality, well-managed player in the pharmaceutical and biotech R&D sector. Unlike typical pharma companies, which face high capital intensity and binary outcomes in drug development, Medpace offers investors a “picks and shovels” exposure, providing critical services for clinical trials and generating predictable, recurring revenue regardless of individual drug success. Its full-service, vertically integrated model—covering every aspect of clinical trials from data collection to core laboratories and imaging—differentiates it from peers and creates a sustainable competitive advantage.

Medpace predominantly serves small to mid-sized biotech firms, allowing it to avoid concentration risk and build deep, high-touch client relationships. Leveraging proprietary technology like the ClinTrak system and AI-enabled imaging analysis, the company enhances efficiency, reduces variability, and accelerates trial timelines, while maintaining low costs and passing savings to clients. Its operational model, combined with a disciplined capital allocation strategy focused on organic growth and opportunistic share repurchases, has enabled strong financial performance, with double-digit organic growth, high margins, and industry-leading return on invested capital.

Founder and CEO August Troendle’s nearly 33-year tenure ensures stability, deep institutional knowledge, and alignment with shareholders, supported by a long-tenured executive team. Despite near-term headwinds from constrained biotech funding and macroeconomic pressures, Medpace is poised to gain market share as weaker competitors struggle, while its global expansion into Phase III trials and international markets positions it for long-term growth. For investors, Medpace offers a compelling way to participate in the growth of the biotech sector through a resilient, capital-light, and high-margin business with multiple levers for shareholder value creation.

Previously we covered a bullish thesis on Medpace Holdings, Inc. by Compound & Fire in May 2025, which highlighted the company's full-service CRO model, strong financials, proprietary technology, and disciplined capital allocation. The company's stock price has appreciated approximately by 55% since our coverage. The thesis still stands as Medpace remains a resilient, high-quality compounder. James Emanuel shares a similar view but emphasizes recurring revenue and founder-led stability.

Medpace Holdings, Inc.  is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held MEDP at the end of the first quarter which was 42 in the previous quarter. While we acknowledge the potential of MEDP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.