Considering Medpace Holdings' robust EPS estimate of
12.94 for next year, the stock might be a promising buy if you're looking for growth potential. However, with a Total Risk Alpha of -0.07, it's wise to keep an eye on market fluctuations that could present a buying opportunity during a potential March dip.
Main Ideas
Medpace Holdings is currently valued at $346.25 per share, with moderate growth expectations. The stock has a Beta of 0.88, suggesting it could offer diversification benefits in a portfolio. This means Medpace's returns are somewhat aligned with market movements, likely rising or falling with the broader market. Presently, the stock has a slightly negative expected return of -0.022%. It's important to review Medpace's value at risk and examine the relationship between its Jensen Alpha and skewness. This analysis can help determine whether past performance trends might reoccur in the near future.
The performance of Medpace Holdings in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Medpace Holdings'
stock prices. When investing in Medpace Holdings, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Medpace Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Medpace Holdings carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is Medpace Holdings's Liquidity
Medpace Holdings
financial leverage refers to using borrowed capital as a funding source to finance Medpace Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Medpace Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Medpace Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Medpace Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Medpace Holdings's total debt and its cash.
What do experts say about Medpace?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusIs Medpace Holdings valued sensibly by the market?
Medpace Holdings maintains a total of 31.08 Million
outstanding shares. The majority of Medpace Holdings
outstanding shares are owned by
institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Medpace Holdings to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Medpace Holdings. Please pay attention to any change in the institutional holdings of Medpace Holdings as this could imply that something significant has changed or is about to change at the company.
Also note that almost one million two hundred fifty-five thousand six hundred ninety-seven invesors are currently shorting Medpace Holdings expressing very little confidence in its future performance.
| 2022 | 2023 | 2024 | 2025 (projected) |
Gross Profit | 432.4M | 524.5M | 603.2M | 633.3M | Total Revenue | 1.5B | 1.9B | 2.2B | 2.3B |
Ownership Breakdown
| Insiders18.5% | Institutions85.54% |
| Retail Investors | -4.04 |
| Insiders | 18.5 |
| Institutions | 85.54 |
"Buy low, sell high" is a mantra that resonates with investors, and it might be particularly relevant when considering Medpace Holdings. With a PEG ratio of 1.72, the stock seems to be fairly valued, suggesting that any potential dip in March could present a buying opportunity. Medpace, operating in the Diagnostics & Research industry, boasts a robust EPS estimate of 12.29 for the current year, indicating strong earnings potential. Despite a relatively low current ratio of 0.41, which might raise liquidity concerns, the company's solid net income of 282.81 million and a healthy operating income of 336.8 million underscore its financial stability. Investors should weigh these factors carefully to determine if a strategic entry point is on the horizon..
Medpace Holdings is projected to stay under $361 in March
Medpace Holdings is experiencing reduced volatility, with its semi-variance dropping to 6.56. This indicates that the stock's price swings might become less dramatic, potentially offering a more stable investment environment. As the market expects Medpace Holdings to stay below $361 in March, this reduced volatility could make it appealing to investors looking for steadier returns amid market uncertainties. As of February 10th, Medpace Holdings has a Risk Adjusted Performance of 0.0694, a downside deviation of 2.79, and a mean deviation of 1.64. The technical analysis model allows you to examine the current technical drivers of Medpace Holdings and understand their interconnections, alongside fundamental indicators.
Our Final Perspective on Medpace Holdings
When is the right time to buy or sell Medpace Holdings? Buying stocks such as Medpace Holdings isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Medpace as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Medpace Holdings.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Medpace Holdings. Please refer to our
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