Why Medpace (MEDP) Outpaced the Stock Market Today

Medpace (MEDP) closed at $352.01 in the latest trading session, marking a +0.32% move from the prior day. The stock’s performance was ahead of the S&P 500’s daily gain of 0.16%. Meanwhile, the Dow gained 0.86%, and the Nasdaq, a tech-heavy index, lost 0.38%.

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Coming into today, shares of the provider of outsourced clinical development services had gained 1.43% in the past month. In that same time, the Medical sector lost 5.3%, while the S&P 500 lost 2.2%.

Market participants will be closely following the financial results of Medpace in its upcoming release. The company plans to announce its earnings on February 10, 2025. On that day, Medpace is projected to report earnings of $2.97 per share, which would represent year-over-year growth of 20.73%. Meanwhile, the latest consensus estimate predicts the revenue to be $536.37 million, indicating a 7.62% increase compared to the same quarter of the previous year.

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Investors should also pay attention to any latest changes in analyst estimates for Medpace. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 has moved 0.81% higher. Right now, Medpace possesses a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Medpace has a Forward P/E ratio of 28.25 right now. This represents a premium compared to its industry’s average Forward P/E of 17.02.

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It’s also important to note that MEDP currently trades at a PEG ratio of 1.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. MEDP’s industry had an average PEG ratio of 1.41 as of yesterday’s close.

The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 39% of over 250 industries.

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