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Medpace (MEDP) Laps the Stock Market: Here's Why

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Medpace (MEDP - Free Report) closed the most recent trading day at $343.05, moving +1.57% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.9%. Meanwhile, the Dow gained 0.81%, and the Nasdaq, a tech-heavy index, added 1.22%.

The provider of outsourced clinical development services's shares have seen a decrease of 2.78% over the last month, surpassing the Medical sector's loss of 4.05% and falling behind the S&P 500's gain of 3.15%.

Market participants will be closely following the financial results of Medpace in its upcoming release. The company plans to announce its earnings on October 21, 2024. In that report, analysts expect Medpace to post earnings of $2.78 per share. This would mark year-over-year growth of 25.23%. Simultaneously, our latest consensus estimate expects the revenue to be $540.49 million, showing a 9.74% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.64 per share and a revenue of $2.13 billion, indicating changes of +31.08% and +13.03%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Medpace. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% lower. Medpace is currently a Zacks Rank #4 (Sell).

With respect to valuation, Medpace is currently being traded at a Forward P/E ratio of 29.01. This represents a premium compared to its industry's average Forward P/E of 20.24.

It's also important to note that MEDP currently trades at a PEG ratio of 1.76. 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. The Medical Services industry currently had an average PEG ratio of 1.76 as of yesterday's close.

The Medical Services industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 178, positioning it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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