In the latest trading session, Medpace (MEDP) closed at $306.80, marking a -1.39% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.8% for the day. On the other hand, the Dow registered a gain of 0.94%, and the technology-centric Nasdaq increased by 0.97%.
Heading into today, shares of the provider of outsourced clinical development services had gained 5.9% over the past month, outpacing the Medical sector's gain of 3.12% and the S&P 500's gain of 5.12%.
Market participants will be closely following the financial results of Medpace in its upcoming release. The company plans to announce its earnings on July 21, 2025. The company's upcoming EPS is projected at $2.99, signifying a 8.73% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $539.75 million, up 2.21% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $12.71 per share and a revenue of $2.18 billion, demonstrating changes of +0.63% and +3.54%, respectively, from the preceding year.
Any recent changes to analyst estimates for Medpace should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Medpace currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Medpace is currently exchanging hands at a Forward P/E ratio of 24.48. This expresses a premium compared to the average Forward P/E of 15.75 of its industry.
One should further note that MEDP currently holds a PEG ratio of 5.61. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Medical Services was holding an average PEG ratio of 1.37 at yesterday's closing price.
The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 67, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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