Latest news with #Medpace
Yahoo
a day ago
- Business
- Yahoo
What Makes Medpace (MEDP) a New Strong Buy Stock
Medpace (MEDP) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time. Therefore, the Zacks rating upgrade for Medpace basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock. Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Medpace imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher. Harnessing the Power of Earnings Estimate Revisions As empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions. The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> . Earnings Estimate Revisions for Medpace This provider of outsourced clinical development services is expected to earn $13.99 per share for the fiscal year ending December 2025, which represents no year-over-year change. Analysts have been steadily raising their estimates for Medpace. Over the past three months, the Zacks Consensus Estimate for the company has increased 8.3%. Bottom Line Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term. You can learn more about the Zacks Rank here >>> The upgrade of Medpace to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term. 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 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
7 days ago
- Business
- Yahoo
West Pharmaceutical Services (WST) Q2 Earnings Report Preview: What To Look For
Healthcare products company West Pharmaceutical Services (NYSE:WST) will be announcing earnings results this Thursday morning. Here's what you need to know. West Pharmaceutical Services beat analysts' revenue expectations by 2% last quarter, reporting revenues of $698 million, flat year on year. It was a very strong quarter for the company, with a solid beat of analysts' EPS estimates and full-year revenue guidance beating analysts' expectations. Is West Pharmaceutical Services a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting West Pharmaceutical Services's revenue to grow 3.4% year on year to $725.9 million, a reversal from the 6.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.51 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. West Pharmaceutical Services has missed Wall Street's revenue estimates four times over the last two years. Looking at West Pharmaceutical Services's peers in the life sciences tools & services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Medpace delivered year-on-year revenue growth of 14.2%, beating analysts' expectations by 11.3%, and IQVIA reported revenues up 5.3%, topping estimates by 1.2%. Medpace traded up 54.6% following the results. Read our full analysis of Medpace's results here and IQVIA's results here. Investors in the life sciences tools & services segment have had steady hands going into earnings, with share prices flat over the last month. West Pharmaceutical Services is up 1.1% during the same time and is heading into earnings with an average analyst price target of $278.84 (compared to the current share price of $219). 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. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
7 days ago
- Business
- Yahoo
Why Are Fortrea (FTRE) Shares Soaring Today
What Happened? Shares of clinical research company Fortrea Holdings (NASDAQ:FTRE) jumped 24.1% in the afternoon session after positive earnings reports from industry peers lifted the entire contract research organization sector. The rally was sparked by strong second-quarter results from two major players in the space, IQVIA and Medpace, which both reported earnings and revenue that beat analyst expectations. Medpace, in particular, surged after significantly raising its full-year guidance for revenue and earnings. This wave of good news from competitors boosted investor confidence across the sector, leading to gains for other contract research organizations (CROs) like Fortrea. A CRO provides outsourced research and development services to the pharmaceutical and biotechnology industries. Fortrea is scheduled to report its own second-quarter financial results on August 6, 2025. Is now the time to buy Fortrea? Access our full analysis report here, it's free. What Is The Market Telling Us Fortrea's shares are extremely volatile and have had 53 moves greater than 5% over the last year. But moves this big are rare even for Fortrea and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 4 days ago when the stock dropped 9.2% as several negative developments weighed on the sector. Weakness in managed care providers was a significant factor, with companies like Elevance Health and Humana seeing declines due to an analyst downgrade and a lost lawsuit regarding Medicare bonus payments, respectively. Additionally, some pharmaceutical and biotech companies experienced sharp drops following unfavorable news; for instance, Sarepta Therapeutics plunged after a report indicated another patient death tied to its experimental gene therapy, and GSK's blood cancer drug dosage was voted against by the FDA advisory committee. Broader market sentiment, including concerns about rising costs and inadequate pricing for 2025 plans among health insurers, also contributed to the downward pressure on healthcare equities. Fortrea is down 68.9% since the beginning of the year, and at $5.80 per share, it is trading 79.2% below its 52-week high of $27.88 from July 2024. Investors who bought $1,000 worth of Fortrea's shares at the IPO in June 2023 would now be looking at an investment worth $192.69. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
22-07-2025
- Business
- Yahoo
Thermo Fisher (TMO) Reports Q2: Everything You Need To Know Ahead Of Earnings
Life sciences company Thermo Fisher (NYSE:TMO) will be announcing earnings results this Wednesday before the bell. Here's what investors should know. Thermo Fisher beat analysts' revenue expectations by 1.3% last quarter, reporting revenues of $10.36 billion, flat year on year. It was a mixed quarter for the company, with a narrow beat of analysts' organic revenue estimates but a slight miss of analysts' operating income estimates. Is Thermo Fisher a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Thermo Fisher's revenue to grow 1.4% year on year to $10.69 billion, a reversal from the 1.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.24 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Thermo Fisher has missed Wall Street's revenue estimates three times over the last two years. Looking at Thermo Fisher's peers in the life sciences tools & services segment, only Medpace has reported results so far. It beat analysts' revenue estimates by 11.3%, delivering year-on-year sales growth of 14.2%. Read our full analysis of Medpace's earnings results here. Debates around the economy's health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the life sciences tools & services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.1% on average over the last month. Thermo Fisher is up 3.7% during the same time and is heading into earnings with an average analyst price target of $546.08 (compared to the current share price of $414.99). 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. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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
21-07-2025
- 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
