Medpace Holdings is Tuesday's selection for IBD 50 Stocks To Watch as shares recently broke out of an early-stage base to hit an all-time high of 501.30.
Medpace stock gapped up and cleared a cup base after the company reported second-quarter earnings on July 22. They are in the 5% buy zone above a buy point of 459.77, according to IBD MarketSurge. Its relative strength line rose sharply after the stock's breakout. The RS line is edging higher.
The strong action after earnings has helped the health care stock's 50-day moving average cross above its 200-day moving average — a bullish chart signal that is known as a "golden cross".
Earnings grew 13% to $3.10 per share during the June-ended quarter. Sales growth picked up from the prior quarter and grew 14% annually to $603.3 million. For the full year, the company's sales outlook stood at $2.47 billion, showing 17% growth at the midpoint.
Earnings growth has been steady, ranging between 8% and 49% over the past eight quarters. Revenue grew between 8% and 28% during the same period.
Analysts Raise Estimates For Medpace Stock
Medpace Holdings provides research and development services for clinical trials that pharmaceutical, medical devices and biotechnology companies run.
Analysts see profits rising 10% in 2025 and have earnings estimates of $13.92 per share for the full year. In 2026, earnings estimates of $15.46 per share indicate 11% in profit growth.
Investor's Business Daily ranks Medpace Holdings first in the medical research equipment and services group, according to IBD Stock Checkup. Demand for the stock is strong, going by its Up/Down Volume Ratio of 1.3.
Institutional support is also a positive point to note. The health care stock holds an Accumulation/Distribution Rating of B. The rating measures the price and volume of the stock over the past 13 weeks. Funds own 66% of outstanding shares.
The stock also holds a strong Composite Rating of 93 and Earnings Per Share Rating of 95. Shares have outperformed 92% of other stocks in the Investor's Business Daily database over the past 52 weeks. Its Relative Strength Rating has improved from 23 three months ago.
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