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Medpace (MEDP) Outperforms Broader Market: What You Need to Know

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Medpace (MEDP - Free Report) closed the most recent trading day at $568.36, moving +1.45% from the previous trading session. This change outpaced the S&P 500's 0.88% gain on the day. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 1.31%.

The stock of provider of outsourced clinical development services has fallen by 4.43% in the past month, lagging the Medical sector's gain of 1.2% and the S&P 500's gain of 2.48%.

Investors will be eagerly watching for the performance of Medpace in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.18, indicating a 13.9% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $681.17 million, up 26.94% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.79 per share and a revenue of $2.5 billion, representing changes of +17.1% and +18.68%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Medpace. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Medpace holds a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Medpace has a Forward P/E ratio of 37.88 right now. This signifies a premium in comparison to the average Forward P/E of 15.44 for its industry.

Investors should also note that MEDP has a PEG ratio of 2.11 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Medical Services industry had an average PEG ratio of 1.62.

The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 151, placing it within the bottom 39% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


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