Medpace (MEDP) closed the latest trading day at $568.36, moving +1.45% from the previous trading session. This change outpaced the S&P 500’s gain of 0.88% on the day. Meanwhile, the Dow Jones saw a 0.38% rise, and the tech-dominated Nasdaq saw a 1.31% increase.
The stock of outsourced clinical development providers fell 4.43% in the past month, lagging the Medical sector’s gain of 1.2% and the S&P 500’s gain of 2.48%.
Investors will be eagerly watching Medpace’s performance in its upcoming earnings disclosure. The company is expected to post EPS of $4.18, indicating growth of 13.9% compared to the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $681.17 million, up 26.94% from the year-ago period.
For the full fiscal year, our Zacks Consensus Estimates are projecting earnings of $14.79 per share and revenue of $2.5 billion, which would represent changes of +17.1% and +18.68%, respectively, from the prior year.
Investors may also notice recent changes to analyst estimates for Medpace. Recent revisions tend to reflect the latest near-term business trends. Thus, upward revisions in estimates express analysts’ positivity towards a business’s operations and its ability to generate earnings.
Research suggests that these estimate revisions are directly related to near-term stock price momentum. Investors can benefit from this by using the Zacks Rank. This model takes these estimate changes into account and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 ranked stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projections remained stagnant. As of now, Medpace carries a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that Medpace has a forward P/E ratio of 37.88 right now. This demonstrates a premium compared to its industry’s average Forward P/E of 15.44.
Investors should also note that MEDP has a PEG ratio of 2.11 at the moment. 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. At the end of yesterday’s trading, the average price peg ratio for the medical services sector reached 1.62.
The medical services industry is part of the medical sector. Presently, this industry carries a Zacks Industry Rank of 151, putting it in the bottom 39% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% of ranked industries outperform the bottom half by a factor of 2 to 1.
Be sure to harness Zacks.com to stay on top of all of these stock conversion metrics, among others, in the following trading sessions.
Want the latest recommendations from Zacks Investment Research? Download the 7 best stocks for the next 30 days. Click to get this free report
