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Medpace (MEDP) Outpaces Stock Market Gains: What You Should Know

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Medpace (MEDP - Free Report) ended the recent trading session at $389.41, demonstrating a +0.79% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.11%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq gained 0.56%.

The the stock of provider of outsourced clinical development services has fallen by 1.59% in the past month, lagging the Medical sector's gain of 2.86% and the S&P 500's gain of 5.06%.

Market participants will be closely following the financial results of Medpace in its upcoming release. The company's earnings per share (EPS) are projected to be $2.52, reflecting a 30.57% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $529.73 million, up 14.94% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $11.29 per share and a revenue of $2.17 billion, demonstrating changes of +27.14% and +14.92%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Medpace. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.53% upward. Medpace currently has a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Medpace is at present trading with a Forward P/E ratio of 34.24. This expresses a premium compared to the average Forward P/E of 19.34 of its industry.

It's also important to note that MEDP currently trades at a PEG ratio of 1.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical Services industry held an average PEG ratio of 1.57.

The Medical Services industry is part of the Medical sector. With its current Zacks Industry Rank of 98, this industry ranks in the top 39% of all industries, numbering over 250.

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 to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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