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Medpace (MEDP) Stock Dips While Market Gains: Key Facts

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In the latest market close, Medpace (MEDP - Free Report) reached $354.65, with a -0.57% movement compared to the previous day. This change lagged the S&P 500's 0.03% gain on the day. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq increased by 0.2%.

The provider of outsourced clinical development services's stock has dropped by 9.01% in the past month, falling short of the Medical sector's gain of 2.67% and the S&P 500's gain of 1.54%.

The upcoming earnings release of Medpace will be of great interest to investors. The company's upcoming EPS is projected at $2.78, signifying a 25.23% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $540.49 million, up 9.74% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.66 per share and revenue of $2.13 billion, indicating changes of +31.31% and +13.16%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Medpace. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Medpace possesses a Zacks Rank of #3 (Hold).

Investors should also note Medpace's current valuation metrics, including its Forward P/E ratio of 30.6. Its industry sports an average Forward P/E of 22.05, so one might conclude that Medpace is trading at a premium comparatively.

One should further note that MEDP currently holds a PEG ratio of 1.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MEDP's industry had an average PEG ratio of 1.66 as of yesterday's close.

The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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