Medpace (MEDP) closed the most recent trading day at $447.09, moving +2.06% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.54%. Elsewhere, the Dow saw an upswing of 0.03%, while the tech-heavy Nasdaq depreciated by 1.18%.
The provider of outsourced clinical development services's shares have seen a decrease of 26.73% over the last month, not keeping up with the Medical sector's loss of 0.62% and the S&P 500's gain of 0.58%.
The upcoming earnings release of Medpace will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3.74, reflecting a 1.91% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $694.24 million, up 24.29% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $17.07 per share and a revenue of $2.81 billion, demonstrating changes of +11.71% and +11%, respectively, from the preceding year.
Any recent changes to analyst estimates for Medpace should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 2.66% higher within the past month. Medpace is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Medpace's current valuation metrics, including its Forward P/E ratio of 25.67. This signifies a premium in comparison to the average Forward P/E of 16.26 for its industry.
It's also important to note that MEDP currently trades at a PEG ratio of 2.1. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Medical Services industry stood at 1.69 at the close of the market yesterday.
The Medical Services industry is part of the Medical sector. With its current Zacks Industry Rank of 150, this industry ranks in the bottom 39% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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