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Medpace (MEDP) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest market close, Medpace (MEDP - Free Report) reached $343.38, with a -1.65% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.76%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq lost 1.2%.

The the stock of provider of outsourced clinical development services has risen by 2.85% in the past month, lagging the Medical sector's gain of 8.26% and overreaching the S&P 500's gain of 2.71%.

The investment community will be closely monitoring the performance of Medpace in its forthcoming earnings report. The company is scheduled to release 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%. Our most recent consensus estimate is calling for quarterly revenue of $536.37 million, up 7.62% from the year-ago period.

Investors should also pay attention to any latest changes in analyst estimates for Medpace. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. As of now, Medpace holds a Zacks Rank of #2 (Buy).

With respect to valuation, Medpace is currently being traded at a Forward P/E ratio of 28.11. This expresses a premium compared to the average Forward P/E of 17.74 of its industry.

Also, we should mention that MEDP has a PEG ratio of 1.79. 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 1.72 as of yesterday's close.

The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 149, finds itself in the bottom 41% echelons of all 250+ industries.

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

You can find more information on all of these metrics, and much more, on Zacks.com.


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