Wasatch Global Investors, an asset management company, released its third-quarter 2025 “Wasatch Small Cap Growth Strategy” investor letter. A copy of the letter can be downloaded here. US small-cap equities rallied strongly in the third quarter. The Fed Reserve’s interest rate cut supported the rally. However, the fund-Investor Class struggled to keep up with the rally and ended the period down -3.17% vs. 12.19% gain for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings t ...

Giverny Capital Asset Management, LLC, an investment management company, recently published its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The portfolio generated good results in the third quarter and returned 6.78% compared to 8.12% for the S&P 500. YTD, the fund returned 12.57% compared to 14.83% for the index. Additionally, you can review the fund’s top 5 holdings to see its best picks for 2025. In its third-quarter 2025 investor letter, Giverny Capital Asset Manage ...

We came across a bullish thesis on Medpace Holdings, Inc. on Archive Invest’s Substack by Felix. In this article, we will summarize the bulls’ thesis on MEDP. Medpace Holdings, Inc.'s share was trading at $592.46 as of November 28th. MEDP’s trailing and forward P/E were 41.40 and 37.17  respectively according to Yahoo Finance. Copyright: dolgachov / 123RF Stock Photo Medpace Holdings, Inc. provides clinical research-based drug and medical device development services in North America, Europe, and Asia. M ...

Core Insights - BrightSpring Health Services, Inc. (BTSG) is currently rated as a Strong Buy (1) by Zacks, while Medpace (MEDP) holds a Buy (2) rating, indicating a more favorable outlook for BTSG in terms of earnings revisions [3]. Valuation Metrics - BTSG has a forward P/E ratio of 30.98, significantly lower than MEDP's forward P/E of 40.02, suggesting that BTSG may be undervalued relative to MEDP [5]. - The PEG ratio for BTSG is 0.58, indicating a more attractive valuation when considering expected EPS growth, compared to MEDP's PEG ratio of 2.22 [5]. - BTSG's P/B ratio stands at 3.43, while MEDP's P/B ratio is considerably higher at 56.77, further supporting the notion that BTSG is a better value option [6]. Value Grades - Based on the analysis of various valuation metrics, BTSG has received a Value grade of B, whereas MEDP has a Value grade of D, highlighting BTSG's superior position in terms of value investment potential [6].

Core Insights - Madison Mid Cap Fund's Class I returned 1.9% in Q3 2025, underperforming the Russell Midcap Index which increased by 5.3% [1] - Information Technology was the leading sector in performance for both the quarter and year-to-date [1] Company Performance - Medpace Holdings, Inc. (NASDAQ:MEDP) had a one-month return of -3.15% but gained 73.55% over the last 52 weeks, closing at $586.16 per share with a market capitalization of $17.047 billion on November 20, 2025 [2] - Medpace reported revenue of $659.9 million in Q3 2025, marking a year-over-year increase of 23.7% [4] Investment Insights - Medpace was one of the top five contributors to the Madison Mid Cap Fund's performance in Q3 2025, with shares rising due to better-than-expected Q2 results and strong revenue and bookings growth [3] - Despite the potential of Medpace as an investment, the company is not among the 30 most popular stocks among hedge funds, with 42 hedge fund portfolios holding its shares at the end of Q2 2025, unchanged from the previous quarter [4]

Group 1 - Nvidia's performance is driving futures higher, indicating strong market sentiment [1] - Medpace Holdings is currently trading at $590.18, showing a 0.75% increase and a 31% rise in its stock analysis [1] - Medpace is finding support at the 21-day Relative Strength line, just below its highs, with a Composite Rating of 99/99 and an Industry Group Ranking of 12 out of 197 [1] Group 2 - Major indexes experienced a fall but bounced off lows, with Nvidia, RTX, Medpace, and Alnylam being key stocks to watch [2] - Medpace's stock jumped following a strong quarterly performance, which included a guidance hike [4] - The healthcare sector is seeing significant growth, with stocks like Hims & Hers leading among 15 growth stocks [4]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Medpace (MEDP) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10] Group 1: Earnings Growth - Medpace has a historical EPS growth rate of 32%, with projected EPS growth of 17.1% for the current year, surpassing the industry average of 15.7% [4] - The importance of double-digit earnings growth is emphasized as a key indicator of strong company prospects and potential stock price gains [3] Group 2: Cash Flow Growth - Medpace's year-over-year cash flow growth stands at 40.3%, significantly higher than the industry average of -1.2%, indicating robust financial health [5] - The company's annualized cash flow growth rate over the past 3-5 years is 26%, compared to the industry average of 7.7%, showcasing its superior performance [6] Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Medpace, with the Zacks Consensus Estimate for the current year increasing by 5.3% over the past month [8] - The correlation between earnings estimate revisions and near-term stock price movements supports the stock's potential for growth [7]

Core Viewpoint - A rotation in investor interest is occurring, moving from high-flying tech stocks to undervalued healthcare stocks, driven by strong earnings and emerging uptrends in the healthcare sector [1]. Group 1: Healthcare Sector Overview - The healthcare sector is experiencing a surge, with several stocks showing strong momentum and favorable rankings on Benzinga's Momentum scores [2]. - Investors are increasingly favoring healthcare stocks due to their strong earnings performance and technical indicators suggesting upward trends [1]. Group 2: Cardinal Health Inc. - Cardinal Health (NYSE:CAH) has a market cap of $48 billion and has consistently generated over $50 billion in sales each quarter since Q1 2023, primarily from generic and branded drug sales [4]. - The stock has increased over 70% year-to-date, with a significant 15% jump following a Q3 earnings report that exceeded consensus expectations by more than 16% [6]. Group 3: Guardant Health Inc. - Guardant Health (NASDAQ:GH) specializes in oncology diagnostics and reported a record revenue of $265 million, reflecting over 38% year-over-year growth [9]. - The stock has shown strong momentum, with a significant increase following better-than-expected earnings results [9]. Group 4: Abivax SA - Abivax (NASDAQ:ABVX) focuses on chronic inflammatory diseases and has seen its stock rise nearly 600% in a single session following positive Phase 3 clinical trial results [10]. - The stock has continued to rise, with a 60% increase over the last three months and a consensus Buy rating from analysts [12]. Group 5: Medpace Holdings Inc. - Medpace (NASDAQ:MEDP) provides clinical trial services and has experienced a stock increase of over 75% year-to-date, driven by strong earnings performance [13]. - The company reported Q3 revenue growth of more than 23% year-over-year, exceeding expectations and indicating strong future prospects [15]. Group 6: Elanco Animal Health Inc. - Elanco Animal Health (NYSE:ELAN) develops healthcare products for pets and farm animals, with shares up 76% this year due to solid earnings [16]. - The company raised its full-year guidance following strong sales growth in both its Pet Health and Farm Animal divisions [18]. Group 7: GeneDx Holdings Corp. - GeneDx Holdings (NASDAQ:WGS) specializes in exome and genome testing and has recently turned a profit, with a market cap approaching $4 billion [19]. - The company has raised guidance for total revenue and adjusted gross margins, indicating strong growth potential [19].

Core Insights - U.S. stocks experienced a rally in Q3, supported by the Federal Reserve's interest rate cut and steady economic data, with the Russell Midcap® Growth Index increasing by 2.78% [3][17] - The Wasatch U.S. Select Fund underperformed, declining by -1.93%, primarily due to concentrated holdings in stocks that faced slower revenue growth [3][4][17] Fund Performance Analysis - The Fund's performance was negatively impacted by a few concentrated stock holdings that reported slower revenue growth, leading to significant declines in their stock prices [4][6] - The investment strategy focuses on high-quality, long-duration growth companies, which faced headwinds as low-quality stocks gained favor in the market [7] Key Detractors - BellRing Brands, Inc. (BRBR) was the largest detractor, with concerns over competition in the protein shake category; however, the long-term outlook remains positive due to category growth potential [8] - Shift4 Payments, Inc. (FOUR) faced stock price declines despite solid organic revenue growth, attributed to macroeconomic concerns and investor sentiment following its acquisition of Global Blue [9] - Inspire Medical Systems, Inc. (INSP) was sold during the quarter after management downgraded guidance due to delays in product rollout, raising execution concerns [10] Top Contributors - Medpace Holdings, Inc. (MEDP) was the top contributor, with strong revenue and earnings growth, raising full-year guidance despite a slowdown in biotech funding [11] - Fabrinet (FN) benefited from strong product adoption, particularly in data centers linked to AI, although the investment is not solely based on AI themes [12] - Nova Ltd. (NVMI) also contributed positively, with a strong track record in semiconductor manufacturing, benefiting from increasing complexity in the industry [13] Future Outlook - The Fund remains committed to its investment philosophy, focusing on high-quality growth companies despite recent underperformance [14] - The fundamentals of the companies within the Fund are encouraging, with strong earnings growth expected to drive return potential over a three- to five-year horizon [15]

Core Insights - BrightSpring Health Services, Inc. (BTSG) is currently rated as a Strong Buy (1) while Medpace (MEDP) is rated as a Buy (2), indicating a more favorable earnings outlook for BTSG [3] - Value investors utilize various traditional metrics to identify undervalued stocks, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Valuation Metrics - BTSG has a forward P/E ratio of 30.66, compared to MEDP's forward P/E of 40.04, suggesting that BTSG may be undervalued relative to MEDP [5] - The PEG ratio for BTSG is 0.58, indicating a more attractive growth valuation compared to MEDP's PEG ratio of 2.71 [5] - BTSG's P/B ratio stands at 3.23, significantly lower than MEDP's P/B ratio of 56.81, further supporting the argument for BTSG's better valuation [6] Conclusion - Given the stronger estimate revision activity and more attractive valuation metrics, BTSG is positioned as the superior investment option for value investors at this time [7]