Does Medpace Holdings (MEDP) Have a Long Runway For Growth?

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) returned 5.2% compared to the 8.5% increase for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Madison Mid Cap Fund highlighted stocks such as Medpace Holdings, Inc. (NASDAQ:MEDP). Medpace Holdings, Inc. (NASDAQ:MEDP) is a clinical research-based drug and medical device development services provider. The one-month return of Medpace Holdings, Inc. (NASDAQ:MEDP) was 8.26%, and its shares gained 37.25% of their value over the last 52 weeks. On September 18, 2025, Medpace Holdings, Inc. (NASDAQ:MEDP) stock closed at $501.94 per share, with a market capitalization of $14.101 billion.

Madison Mid Cap Fund stated the following regarding Medpace Holdings, Inc. (NASDAQ:MEDP) in its second quarter 2025 investor letter:

"We added one new investment in the quarter, Medpace Holdings, Inc. (NASDAQ:MEDP). Medpace is a fast growing contract research organization (CRO), focused on providing clinical trial services to small biotech companies. The company is run by founder Dr. August Troendle, a true owner-operator who still owns 18% of the company. Over time, its concentration on small biotech customers has led to a differentiated and advanced set of expertise in the market, especially within the therapeutic areas of oncology and metabolic disorders. With only a ~5% share of the addressable market, the company has a long growth runway ahead. A weak biotech funding environment has caused growth to decelerate, causing valuation to compress to attractive levels."

Medpace Holdings, Inc. (NASDAQ:MEDP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Medpace Holdings, Inc. (NASDAQ:MEDP) at the end of the second quarter, consistent with the previous quarter. Medpace Holdings, Inc. (NASDAQ:MEDP) reported revenue of $603.3 million in the second quarter 2025, representing an increase of 14.2% year-over-year. While we acknowledge the potential of Medpace Holdings, Inc. (NASDAQ: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.

In another article, we covered Medpace Holdings, Inc. (NASDAQ:MEDP) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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