Medpace (MEDP) closed the most recent trading day at $492.09, moving +1.05% from the previous trading session. This change outpaced the S&P 500's 0.21% gain on the day. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.45%.
Heading into today, shares of the provider of outsourced clinical development services had gained 12.12% over the past month, outpacing the Medical sector's gain of 5.47% and the S&P 500's gain of 3.07%.
The upcoming earnings release of Medpace will be of great interest to investors. On that day, Medpace is projected to report earnings of $3.49 per share, which would represent year-over-year growth of 15.95%. Alongside, our most recent consensus estimate is anticipating revenue of $640.76 million, indicating a 20.14% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $13.99 per share and revenue of $2.46 billion, which would represent changes of +10.77% and +16.83%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Medpace. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Medpace is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Medpace is presently trading at a Forward P/E ratio of 34.81. This indicates a premium in contrast to its industry's Forward P/E of 16.58.
It's also important to note that MEDP currently trades at a PEG ratio of 3.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical Services was holding an average PEG ratio of 1.53 at yesterday's closing price.
The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Medpace Holdings, Inc. (MEDP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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