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Medpace (MEDP) Moves 3.3% Higher: Will This Strength Last?

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Medpace (MEDP - Free Report) shares rallied 3.3% in the last trading session to close at $193.91. 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 5.7% gain over the past four weeks.

The stock scored a strong price increase driven by the optimism surrounding the company’s solid second-quarter 2021 results. Earnings per share exceeded the Zacks Consensus Estimate by 8.2% while revenues surpassed the estimate mark by 2.6%. The bullish full-year 2021 revenue guidance also raises investors’ confidence. For the full year, Medpace expects revenue growth in the range of 19.9% to 24.2% over 2020.

This provider of outsourced clinical development services is expected to post quarterly earnings of $1.07 per share in its upcoming report, which represents a year-over-year change of -5.3%. Revenues are expected to be $292.8 million, up 27.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Medpace, the consensus EPS estimate for the quarter has been revised 0.9% 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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