Medpace (MEDP) closed at $466.79 in the latest trading session, marking a +1.94% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.26%. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.97%.
Prior to today's trading, shares of the provider of outsourced clinical development services had gained 9.73% outpaced the Medical sector's gain of 3.5% and the S&P 500's gain of 0.23%.
Analysts and investors alike will be keeping a close eye on the performance of Medpace in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $4.08, marking a 31.61% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $678.51 million, showing a 12.47% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.04 per share and a revenue of $2.79 billion, signifying shifts of +11.52% and +10.32%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Medpace. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Medpace is carrying a Zacks Rank of #3 (Hold).
Investors should also note Medpace's current valuation metrics, including its Forward P/E ratio of 26.87. This denotes a premium relative to the industry average Forward P/E of 15.47.
We can additionally observe that MEDP currently boasts a PEG ratio of 2.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Medical Services industry was having an average PEG ratio of 1.44.
The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 112, finds itself in the top 46% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Medpace Holdings, Inc. (MEDP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).