Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 12 Sep, 24 | MEDP | Buy | USD 344.94 | USD 365.0 | USD 390.0 | 7 days | 13.1% |
Data Powered by EOD Historical Data (“EODHD”).
Medpace Holdings, Inc. provides clinical research-based drug and medical device development services in North America, Europe, and Asia. The company offers a suite of services supporting the clinical development process from Phase I to Phase IV in various therapeutic areas. It provides clinical development services to the pharmaceutical, biotechnology, and medical device industries; and development plan design, coordinated central laboratory, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, and post-marketing clinical support services. In addition, the company offers bio-analytical laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. Medpace Holdings, Inc. was founded in 1992 and is based in Cincinnati, Ohio.
Enhanced Bottom Line Performance: Net Margin of 20.1% in Q1 FY24 vs Industry Median of 2.2%
Improving Liquidity: Current Ratio of 0.78x in Q1 FY24 vs 0.42x in Q1 FY23
Operating Inefficiency: Asset Turnover of 0.30x in Q1 FY24 vs 0.32x in Q1 FY23
Higher Cash Cycle: 44.2 Days in Q1 FY24 vs 43.1 Days in Q1 FY23
Dependency on Contract Renewals, Regulatory Compliance and Quality Control, Project Execution Risks, Client and Revenue Concentration, R&D and Innovation Risks, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 344.94 | 280.0 | 365.0 | 390.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
On the daily chart for MEDP, the stock price is currently trading above key support levels, suggesting a potential for a reversal and upward movement. The 14-day Relative Strength Index (RSI) is recovering from oversold conditions, which could signal a possible bounce back towards its neutral midpoint. However, the stock is still trading below the 21-day Simple Moving Average (SMA), which could serve as a resistance level. Important resistance levels to monitor are 365 and 390, whereas support levels to watch are 310 and 280.
As per the above-mentioned technical indicators analysis, a ‘Buy’ rating has been given to Medpace Holdings Inc (NASDAQ: MEDP) at the closing market price of USD 344.94 as of 12 September 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Diagnostics & Research
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| MEDP Medpace Holdings Inc |
1.12 0.33% | 339.29 | 40.09 | 36.90 | 6.49 | 21.89 | 6.43 | 33.42 |
| TMO Thermo Fisher Scientific Inc |
2.26 0.38% | 597.71 | 34.71 | 23.87 | 4.62 | 4.43 | 5.29 | 20.89 |
| DHR Danaher Corporation |
0.75 0.28% | 269.56 | 29.09 | 28.01 | 5.67 | 3.20 | 6.00 | 19.09 |
| IDXX IDEXX Laboratories Inc |
-0.79 0.17% | 474.14 | 49.99 | 45.66 | 11.29 | 27.85 | 11.46 | 34.46 |
| IQV IQVIA Holdings Inc |
1.72 0.76% | 228.44 | 37.82 | 19.68 | 2.76 | 7.20 | 3.61 | 17.03 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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