Latest news with #MEDP
Yahoo
16 hours ago
- Business
- Yahoo
Why Is Medpace (MEDP) Stock Rocketing Higher Today
What Happened? Shares of clinical research company Medpace Holdings (NASDAQ:MEDP) jumped 49.3% in the morning session after the company reported strong second-quarter financial results and raised its full-year guidance. The company announced its second-quarter results, revealing revenue of $603.3 million, a 14.2% increase from the prior-year period. Earnings per share also grew, coming in at $3.10. Following the strong performance, Medpace raised its full-year 2025 revenue forecast to a range of $2.42 billion to $2.52 billion. It also increased its earnings per share guidance for the year to a range of $13.76 to $14.53. This positive outlook, which surpassed previous forecasts, appeared to fuel significant investor optimism. Medpace, which provides services for all phases of clinical drug development, was scheduled to host a conference call to discuss the results. Is now the time to buy Medpace? Access our full analysis report here, it's free. What Is The Market Telling Us Medpace's shares are quite volatile and have had 17 moves greater than 5% over the last year. But moves this big are rare even for Medpace and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 3 months ago when the stock dropped 11.2% on the news that the company reported first-quarter 2025 earnings with high expectations heading into the quarter, dampening the otherwise decent results. A key concern was the 19% decline in net new bookings. Also, the drop in the book-to-bill ratio to 0.90x further suggested future bookings were slowing, which might explain why investors didn't cheer louder. On a positive note, Medpace blew past analysts' organic revenue and EPS expectations and it lifted its full-year revenue guidance. Zooming out, we think this quarter featured some important positives. However, the market seemed to be hoping for more. Medpace is up 42.1% since the beginning of the year, and at $475.57 per share, has set a new 52-week high. Investors who bought $1,000 worth of Medpace's shares 5 years ago would now be looking at an investment worth $4,315. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Medpace (NASDAQ:MEDP) Reports Strong Q2, Stock Jumps 46%
Clinical research company Medpace Holdings (NASDAQ:MEDP) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 14.2% year on year to $603.3 million. The company's full-year revenue guidance of $2.47 billion at the midpoint came in 13% above analysts' estimates. Its GAAP profit of $3.10 per share was 3.5% above analysts' consensus estimates. Is now the time to buy Medpace? Find out in our full research report. Medpace (MEDP) Q2 CY2025 Highlights: Revenue: $603.3 million vs analyst estimates of $542 million (14.2% year-on-year growth, 11.3% beat) EPS (GAAP): $3.10 vs analyst estimates of $3.00 (3.5% beat) Adjusted EBITDA: $130.5 million vs analyst estimates of $117 million (21.6% margin, 11.5% beat) The company lifted its revenue guidance for the full year to $2.47 billion at the midpoint from $2.19 billion, a 12.8% increase EPS (GAAP) guidance for the full year is $14.15 at the midpoint, beating analyst estimates by 11% EBITDA guidance for the full year is $530 million at the midpoint, above analyst estimates of $473.7 million Operating Margin: 20.9%, up from 19.9% in the same quarter last year Free Cash Flow Margin: 23.6%, up from 19.6% in the same quarter last year Organic Revenue rose 14.2% year on year, in line with the same quarter last year Market Capitalization: $8.96 billion Company Overview Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Medpace's sales grew at an impressive 20.4% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Medpace's annualized revenue growth of 15.5% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. Medpace also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Medpace's organic revenue averaged 15.7% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Medpace reported year-on-year revenue growth of 14.2%, and its $603.3 million of revenue exceeded Wall Street's estimates by 11.3%. Looking ahead, sell-side analysts expect revenue to decline by 2.4% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Medpace has managed its cost base well over the last five years. It demonstrated solid profitability for a healthcare business, producing an average operating margin of 19.4%. Analyzing the trend in its profitability, Medpace's operating margin rose by 2.8 percentage points over the last five years, as its sales growth gave it operating leverage. The company's two-year trajectory shows its performance was mostly driven by its recent improvements. These data points are very encouraging and shows momentum is on its side. In Q2, Medpace generated an operating margin profit margin of 20.9%, up 1 percentage points year on year. This increase was a welcome development and shows it was more efficient. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Medpace's EPS grew at an astounding 36.7% compounded annual growth rate over the last five years, higher than its 20.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of Medpace's earnings can give us a better understanding of its performance. As we mentioned earlier, Medpace's operating margin expanded by 2.8 percentage points over the last five years. On top of that, its share count shrank by 21.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. In Q2, Medpace reported EPS at $3.10, up from $2.75 in the same quarter last year. This print beat analysts' estimates by 3.5%. Over the next 12 months, Wall Street expects Medpace's full-year EPS of $13.45 to shrink by 8.1%. Key Takeaways from Medpace's Q2 Results We were impressed by how significantly Medpace blew past analysts' expectations across all key metrics this quarter. We were also excited it lifted its full-year guidance. Zooming out, we think this was a solid print. The stock traded up 46% to $451 immediately following the results. Indeed, Medpace had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-06-2025
- Business
- Yahoo
Alvotech (ALVO): A Bull Case Theory
We came across a bullish thesis on Alvotech (ALVO) on M.V Cunha's Substack. In this article, we will summarize the bulls' thesis on ALVO. Alvotech (ALVO)'s share was trading at $10.37 as of 10th June. ALVO's trailing and forward P/E were 28.73 and 52.91 respectively according to Yahoo Finance. A scientist in a laboratory working on drug research. Alvotech is a vertically integrated biosimilars company focused on reducing global healthcare costs by developing more affordable versions of complex biologic drugs. With an asset-light commercialization strategy relying on global distribution partners, Alvotech retains R&D control while limiting upfront sales costs. Its proprietary Reykjavik-based facility, built for scale and flexibility, supports a diversified pipeline targeting high-value biologics like Humira and Stelara. Despite past delays in FDA approvals, the company is now gaining commercial traction, with AVT02 already launched across multiple geographies and AVT04's U.S. launch slated for Q4 2024. Financial momentum is building: adjusted operating cash flow turned positive in 2024, and Alvotech expects to reach free cash flow positive in 2025, enabling self-funding growth and potential deleveraging. However, the capital structure remains a key overhang, with over $1B in debt at a steep 12.4% interest rate weighing heavily on profitability. Execution risks also loom large — from regulatory hurdles and manufacturing concentration to limited product diversity and partner reliance. Valuation looks attractive on a long-term view: the stock trades at just ~3.75x projected 2028 EBITDA, and hitting its targets could imply a >30% IRR, even with dilution. Still, material weaknesses in internal controls and tariff risks add further complexity. While founder-CEO Róbert Wessman's significant ownership aligns interests, his attention is divided across ventures. For concentrated investors, the risk/reward may feel asymmetric, but for those with a wider net, Alvotech presents a high-upside, execution-dependent opportunity in one of healthcare's most important cost-saving frontiers. Previously, we summarized a on Medpace (MEDP), highlighting its capital-light model, high client retention, and durable biotech exposure. Similarly, Alvotech (ALVO) is seen as a biotech-driven healthcare play, but with a riskier, debt-laden profile and regulatory overhangs, making MEDP the steadier compounder while ALVO offers higher but less certain upside. Alvotech (ALVO) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held ALVO at the end of the first quarter which was 9 in the previous quarter. While we acknowledge the risk and potential of ALVO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
11-06-2025
- Business
- Yahoo
Medpace (MEDP) Exceeds Market Returns: Some Facts to Consider
The latest trading session saw Medpace (MEDP) ending at $305.90, denoting a +2.54% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.63%. Shares of the provider of outsourced clinical development services have depreciated by 4.91% over the course of the past month, underperforming the Medical sector's gain of 3.49% and the S&P 500's gain of 6.29%. The investment community will be paying close attention to the earnings performance of Medpace in its upcoming release. The company is predicted to post an EPS of $2.99, indicating an 8.73% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $539.75 million, indicating a 2.21% growth compared to the corresponding quarter of the prior year. MEDP's full-year Zacks Consensus Estimates are calling for earnings of $12.71 per share and revenue of $2.18 billion. These results would represent year-over-year changes of +0.63% and +3.54%, respectively. 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Medpace presently features a Zacks Rank of #3 (Hold). Looking at its valuation, Medpace is holding a Forward P/E ratio of 23.47. For comparison, its industry has an average Forward P/E of 16.63, which means Medpace is trading at a premium to the group. Investors should also note that MEDP has a PEG ratio of 5.38 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 average PEG ratio for the Medical Services industry stood at 1.38 at the close of the market yesterday. The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 29% echelons 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. Be sure to follow all of these stock-moving metrics, and many more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
09-06-2025
- Business
- Yahoo
CON or MEDP: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical Services sector might want to consider either Concentra Group (CON) or Medpace (MEDP). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits. Concentra Group and Medpace are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CON has an improving earnings outlook. But this is only part of the picture for value investors. Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels. Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use. CON currently has a forward P/E ratio of 16.25, while MEDP has a forward P/E of 23.32. We also note that CON has a PEG ratio of 2.08. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MEDP currently has a PEG ratio of 5.35. Another notable valuation metric for CON is its P/B ratio of 9.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MEDP has a P/B of 14.36. Based on these metrics and many more, CON holds a Value grade of B, while MEDP has a Value grade of C. CON sticks out from MEDP in both our Zacks Rank and Style Scores models, so value investors will likely feel that CON is the better option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Concentra Group Holdings Parent, Inc. (CON) : Free Stock Analysis Report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
