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Strength Seen in Medpace (MEDP): Can Its 3.5% Jump Turn into More Strength?

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Medpace (MEDP - Free Report) shares rallied 3.5% in the last trading session to close at $166.57. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.3% loss over the past four weeks.

Medpace scored a strong price rise driven by its encouraging fourth-quarter 2020 results, with adjusted earnings and revenues both surpassing the Zacks Consensus Estimate by 2.9% and 5.4%, respectively. Medpace’s 2021 revenue guidance that projects 16.1% to 26.9% growth over the year-ago figure also buoys optimism.

Price and Consensus

Price Consensus Chart for MEDP

This provider of outsourced clinical development services is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of +26.3%. Revenues are expected to be $265 million, up 14.8% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Medpace, the consensus EPS estimate for the quarter has been revised 2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on MEDP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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