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Medpace (MEDP) Ascends While Market Falls: Some Facts to Note

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In the latest trading session, Medpace (MEDP - Free Report) closed at $350.37, marking a +1.83% move from the previous day. The stock's change was more than the S&P 500's daily loss of 1.46%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq lost 3.07%.

Heading into today, shares of the provider of outsourced clinical development services had gained 0.86% over the past month, lagging the Medical sector's gain of 1.84% and the S&P 500's gain of 1.08% in that time.

The upcoming earnings release of Medpace will be of great interest to investors. The company's earnings report is expected on February 10, 2025. The company is forecasted to report an EPS of $2.97, showcasing a 20.73% upward movement from the corresponding quarter of the prior year. 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.

Investors should also pay attention to any latest changes in analyst estimates for Medpace. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Medpace is carrying a Zacks Rank of #2 (Buy).

With respect to valuation, Medpace is currently being traded at a Forward P/E ratio of 27.7. This denotes a premium relative to the industry's average Forward P/E of 17.43.

Investors should also note that MEDP has a PEG ratio of 1.76 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. The Medical Services was holding an average PEG ratio of 1.56 at yesterday's closing price.

The Medical Services industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 37% of over 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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