Core Insights - The article compares two Medical Services stocks, Cencora (COR) and Medpace (MEDP), to determine which is more attractive for value investors [1] Valuation Metrics - Both COR and MEDP currently have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions for both companies [3] - COR has a forward P/E ratio of 18.30, while MEDP has a forward P/E of 33.85 [5] - COR's PEG ratio is 1.38, compared to MEDP's PEG ratio of 2.98, suggesting COR is expected to grow earnings at a more favorable rate [5] - COR has a P/B ratio of 25.49, while MEDP's P/B ratio is significantly higher at 77.18 [6] - Based on these valuation metrics, COR holds a Value grade of A, whereas MEDP has a Value grade of D, indicating that COR is currently the superior value option [6]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Medpace (MEDP) currently holding a Momentum Style Score of B [2][3] Group 2: Medpace Performance Metrics - Medpace has shown a 5.41% increase in shares over the past week, outperforming the Zacks Medical Services industry, which rose by 1.6% [5] - Over the past quarter, Medpace shares have risen by 55.26%, and by 18.27% in the last year, compared to the S&P 500's increases of 9.33% and 17.71% respectively [6] - The average 20-day trading volume for Medpace is 772,137 shares, indicating a bullish sign with rising stock prices [7] Group 3: Earnings Outlook - In the past two months, five earnings estimates for Medpace have increased, raising the consensus estimate from $12.71 to $13.99 [9] - For the next fiscal year, five estimates have also moved upwards, with no downward revisions during the same period [9] Group 4: Investment Recommendation - Considering the performance metrics and earnings outlook, Medpace is rated as a 2 (Buy) stock with a Momentum Score of B, making it a potential short-term investment opportunity [11]

Group 1 - Medpace, a clinical research organization based in Cincinnati, delivered an impressive performance in Q2 2025, which positively impacted the perception of the healthcare sector [1] - The company is recognized for its focus on sustainable business models, high cash generation, cash flow growth, strong balance sheets, and widening moats [1]

Group 1 - Medpace Holdings, Inc. (MEDP) has reached an important support level and is considered a good stock pick from a technical perspective due to a recent "golden cross" event [1] - A golden cross is a bullish technical chart pattern formed when a short-term moving average, such as the 50-day, crosses above a longer-term moving average like the 200-day, indicating potential for a bullish breakout [2] - The golden cross pattern consists of three stages: a downtrend followed by a crossover of moving averages, and finally an upward price movement [3] Group 2 - MEDP shares have increased by 34.3% over the past four weeks, and the company holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting a potential breakout [4] - The positive earnings outlook for MEDP is supported by five upward revisions in earnings estimates over the past 60 days, with no downward revisions, leading to an increase in the Zacks Consensus Estimate [4] - Investors are encouraged to monitor MEDP for further gains due to its key technical level and favorable earnings estimate revisions [5]

Core Viewpoint - Medpace (MEDP) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade suggest an improvement in Medpace's underlying business, which could lead to increased stock prices as investors respond positively [5][10]. - The Zacks Consensus Estimate for Medpace has increased by 8.3% over the past three months, with expected earnings of $13.99 per share for the fiscal year ending December 2025, indicating stability year-over-year [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, positioning Medpace among the best candidates for potential market-beating returns [9][10].

Group 1: Stock Highlights - Calix, Inc. (CALX) has a Zacks Rank 1 with a 25.6% increase in the current year earnings estimate over the last 60 days and a share price gain of 35.9% in the last three months compared to the S&P 500's 14.9% [1] - Medpace Holdings, Inc. (MEDP) also holds a Zacks Rank 1, with a 10.1% increase in the current year earnings estimate over the last 60 days and a share price gain of 46.1% in the last three months compared to the S&P 500's 14.9% [2] - West Pharmaceutical Services, Inc. (WST) maintains a Zacks Rank 1, with a 5.3% increase in the current year earnings estimate over the last 60 days and a share price gain of 23.4% in the last three months compared to the S&P 500's 14.9% [3] Group 2: Momentum Scores - Calix, Inc. has a Momentum Score of A, indicating strong momentum characteristics [1] - Medpace Holdings, Inc. also possesses a Momentum Score of A, reflecting its robust performance [2] - West Pharmaceutical Services, Inc. carries a Momentum Score of A, showcasing its positive momentum [3]

Medpace (MEDP 54.51%), a clinical contract research organization that manages drug development for pharmaceutical and biotech clients, reported its second quarter 2025 earnings on July 17, 2025. The company delivered GAAP results that topped both earnings and revenue forecasts, with GAAP revenue of $603.3 million versus the estimated $538.8 million and GAAP earnings per share (EPS) of $3.10 versus the expected $2.98. The period's robust GAAP figures outpaced analyst estimates. Overall, the quarter featured ...

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents the unaudited interim financial statements, management's analysis of financial condition and operations, market risk disclosures, and internal controls assessment [Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited financial statements for Q2 2025 reflect strong revenue growth, significant share repurchases, and reduced cash balances [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheet shows a significant decrease in cash and shareholders' equity due to share repurchases Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $46,330 | $669,436 | | Total current assets | $520,805 | $1,029,229 | | Total assets | $1,571,673 | $2,100,866 | | **Liabilities & Equity** | | | | Total current liabilities | $1,220,443 | $1,104,553 | | Total liabilities | $1,399,322 | $1,275,321 | | (Accumulated deficit) retained earnings | ($703,215) | $8,167 | | Total shareholders' equity | $172,351 | $825,545 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statements of operations show strong revenue and net income growth for both Q2 and year-to-date 2025 Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue, net | $603,311 | $528,104 | $1,161,881 | $1,039,148 | | Income from operations | $126,335 | $105,150 | $239,858 | $209,219 | | Net income | $90,260 | $88,351 | $204,855 | $190,942 | | Diluted EPS | $3.10 | $2.75 | $6.79 | $5.96 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statement indicates strong operating cash flow offset by substantial share repurchases Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $274,362 | $269,074 | | Net cash used in investing activities | ($16,007) | ($10,260) | | Net cash (used in) provided by financing activities | ($886,530) | $8,326 | | **(Decrease) Increase in Cash** | **($623,106)** | **$265,445** | - The primary use of cash in financing activities was **$912.8 million** for repurchases of common stock during the first six months of 2025[13](index=13&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail expanded share repurchase program, significant backlog, credit facility amendments, and key revenue drivers - The Board of Directors increased the stock repurchase program authorization to **$2.1 billion**. During the first six months of 2025, the company repurchased 2,947,275 shares for **$908.4 million**[17](index=17&type=chunk) - As of June 30, 2025, the company had approximately **$3.5 billion** of remaining performance obligations for active projects[33](index=33&type=chunk) - The company amended its credit facility, increasing the borrowing capacity to **$600.0 million** in April 2025, and subsequently decreasing it to **$10.0 million** in July 2025, with no debt outstanding as of June 30, 2025[38](index=38&type=chunk)[39](index=39&type=chunk) Revenue from Key Related Parties (in millions) | Related Party | Q2 2025 Revenue | Q2 2024 Revenue | YTD 2025 Revenue | YTD 2024 Revenue | | :--- | :--- | :--- | :--- | :--- | | CinRx Pharma | $15.1 | $7.3 | $26.8 | $13.6 | | LIB Therapeutics | $1.7 | $3.9 | $3.9 | $10.4 | Revenue by Therapeutic Area - Six Months Ended June 30 (in thousands) | Therapeutic Area | 2025 | 2024 | | :--- | :--- | :--- | | Oncology | $359,034 | $318,150 | | Metabolic | $295,888 | $209,941 | | Other | $213,898 | $220,832 | | Cardiology | $116,863 | $116,336 | | Central Nervous System | $116,030 | $90,655 | | AVAI | $60,168 | $83,234 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses revenue growth drivers, new business awards, backlog trends, and the impact of share repurchases on liquidity Key Performance Metrics (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net new business awards | $620.5 | $551.0 | $1,120.6 | $1,166.5 | - Backlog as of June 30, 2025, was **$2,873.6 million**, a decrease of **1.8%** from **$2,924.9 million** as of June 30, 2024. Approximately **$1,740.0 million to $1,760.0 million** of this backlog is expected to convert to revenue in the next twelve months[81](index=81&type=chunk) - Revenue increase for the three and six months ended June 30, 2025 was primarily driven by growth within the Metabolic, Oncology and Central Nervous System therapeutic areas[87](index=87&type=chunk) - Cash and cash equivalents decreased from **$669.4 million** at year-end 2024 to **$46.3 million** as of June 30, 2025, primarily due to repurchases of common stock[96](index=96&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its quantitative and qualitative disclosures about market risk compared to those described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - There have been no material changes to the company's market risk disclosures since the last Annual Report on Form 10-K[112](index=112&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025 - The Company's management, including the CEO and CFO, concluded that as of the end of the period, disclosure controls and procedures were effective in providing reasonable assurance[114](index=114&type=chunk) - No changes in internal control over financial reporting occurred during the second quarter of 2025 that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[116](index=116&type=chunk) [PART II — OTHER INFORMATION](index=28&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, and other disclosures [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in incidental legal proceedings in the ordinary course of business but does not expect their resolution to have a material adverse effect on its financial statements - The company is party to legal proceedings incidental to its business and does not believe the resolution of these matters is reasonably likely to have a material adverse effect on its financial statements[117](index=117&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) There have been no significant changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - No significant changes have occurred in the risk factors since the last Annual Report[118](index=118&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2025, the company repurchased 1,754,264 shares of its common stock for a total of $518.5 million Share Repurchases in Q2 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 1,198,556 | $294.00 | | May 2025 | 233,447 | $292.30 | | June 2025 | 322,261 | $303.88 | | **Total** | **1,754,264** | **$295.59** | - The company returned **$518.5 million** to shareholders through share repurchases in the second quarter of fiscal year 2025[120](index=120&type=chunk) [Defaults Upon Senior Securities](index=28&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None - None[122](index=122&type=chunk) [Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not applicable[123](index=123&type=chunk) [Other Information](index=29&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2025, no director or officer of the company adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[124](index=124&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed or furnished as part of the report, including amendments to loan documents, incentive plans, and officer certifications

Core Viewpoint - Medpace, a US contract research organization (CRO) providing clinical research outsourcing services primarily to small and mid-sized biotech companies, reported strong financial results, leading to a significant surge in its stock price [1][4]. Financial Performance - Revenue for Q2 reached $603.3 million, a year-over-year increase of 14.2%, surpassing analyst expectations of $542 million, and up from a 9.3% growth in Q1 [5]. - The diluted earnings per share (EPS) for Q2 was $3.10, reflecting a 12.7% year-over-year increase, exceeding the expected $3.00, with Q1 showing a 14.7% growth [5]. - EBITDA for Q2 was $130.5 million, up 16.2% year-over-year, with an EBITDA margin of 21.6%, compared to a 2.6% increase in Q1 [5]. Performance Guidance - For 2025, Medpace projects revenue between $2.42 billion and $2.52 billion, an increase from the previous guidance of $2.14 billion to $2.24 billion [7]. - The expected diluted EPS for 2025 is between $13.76 and $14.53, up from the prior guidance of $12.26 to $13.04 [7]. - EBITDA guidance for 2025 is set between $515 million and $545 million, revised from the previous range of $462 million to $492 million [7]. Market Reaction - Following the earnings report, Medpace's stock price jumped over 44% at the opening and reached a peak increase of 62.3% during early trading, marking the largest single-day gain since its IPO nearly nine years ago [1][4]. - The surge in Medpace's stock also positively impacted other CRO stocks, with Iqvia Holdings rising nearly 20%, ICLR PLC increasing over 10%, and Charles River Laboratories International also seeing a rise of over 10% [4]. Analyst Sentiment - Despite the strong performance, analysts from Jefferies remain cautious about the CRO industry, noting that Medpace's success may be an exception rather than a trend, citing concerns over reduced funding and extended decision-making cycles in the industry [9].

Group 1 - Medpace (NASDAQ: MEDP) reported its Q2 2025 financial results on July 21, 2025, exceeding expected earnings guidance for the quarter [2] - The company has raised its full-year 2025 revenue guidance, indicating positive growth prospects [2]