Back to top

Image: Bigstock

Medpace (MEDP) Exceeds Market Returns: Some Facts to Consider

Read MoreHide Full Article

In the latest close session, Medpace (MEDP - Free Report) was up +1.55% at $326.03. The stock outpaced the S&P 500's daily gain of 0.48%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw an increase of 0.94%.

Heading into today, shares of the provider of outsourced clinical development services had gained 4.9% over the past month, outpacing the Medical sector's gain of 2.8% and lagging the S&P 500's gain of 5.13%.

Investors will be eagerly watching for the performance of Medpace in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 21, 2025. On that day, Medpace is projected to report earnings of $2.99 per share, which would represent year-over-year growth of 8.73%. Meanwhile, our latest consensus estimate is calling for revenue of $539.75 million, up 2.21% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.71 per share and revenue of $2.18 billion, indicating changes of +0.63% and +3.54%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Medpace. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Medpace holds a Zacks Rank of #3 (Hold).

In the context of valuation, Medpace is at present trading with a Forward P/E ratio of 25.26. Its industry sports an average Forward P/E of 16.21, so one might conclude that Medpace is trading at a premium comparatively.

We can additionally observe that MEDP currently boasts a PEG ratio of 5.79. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Medical Services industry stood at 1.47 at the close of the market yesterday.

The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% of all 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Medpace Holdings, Inc. (MEDP) - free report >>

Published in