Latest news with #MEDP
Yahoo
15 hours ago
- Business
- Yahoo
Alvotech (ALVO): A Bull Case Theory
We came across a bullish thesis on Alvotech (ALVO) on M.V Cunha's Substack. In this article, we will summarize the bulls' thesis on ALVO. Alvotech (ALVO)'s share was trading at $10.37 as of 10th June. ALVO's trailing and forward P/E were 28.73 and 52.91 respectively according to Yahoo Finance. A scientist in a laboratory working on drug research. Alvotech is a vertically integrated biosimilars company focused on reducing global healthcare costs by developing more affordable versions of complex biologic drugs. With an asset-light commercialization strategy relying on global distribution partners, Alvotech retains R&D control while limiting upfront sales costs. Its proprietary Reykjavik-based facility, built for scale and flexibility, supports a diversified pipeline targeting high-value biologics like Humira and Stelara. Despite past delays in FDA approvals, the company is now gaining commercial traction, with AVT02 already launched across multiple geographies and AVT04's U.S. launch slated for Q4 2024. Financial momentum is building: adjusted operating cash flow turned positive in 2024, and Alvotech expects to reach free cash flow positive in 2025, enabling self-funding growth and potential deleveraging. However, the capital structure remains a key overhang, with over $1B in debt at a steep 12.4% interest rate weighing heavily on profitability. Execution risks also loom large — from regulatory hurdles and manufacturing concentration to limited product diversity and partner reliance. Valuation looks attractive on a long-term view: the stock trades at just ~3.75x projected 2028 EBITDA, and hitting its targets could imply a >30% IRR, even with dilution. Still, material weaknesses in internal controls and tariff risks add further complexity. While founder-CEO Róbert Wessman's significant ownership aligns interests, his attention is divided across ventures. For concentrated investors, the risk/reward may feel asymmetric, but for those with a wider net, Alvotech presents a high-upside, execution-dependent opportunity in one of healthcare's most important cost-saving frontiers. Previously, we summarized a on Medpace (MEDP), highlighting its capital-light model, high client retention, and durable biotech exposure. Similarly, Alvotech (ALVO) is seen as a biotech-driven healthcare play, but with a riskier, debt-laden profile and regulatory overhangs, making MEDP the steadier compounder while ALVO offers higher but less certain upside. Alvotech (ALVO) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held ALVO at the end of the first quarter which was 9 in the previous quarter. While we acknowledge the risk and potential of ALVO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
11-06-2025
- Business
- Yahoo
Medpace (MEDP) Exceeds Market Returns: Some Facts to Consider
The latest trading session saw Medpace (MEDP) ending at $305.90, denoting a +2.54% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.63%. Shares of the provider of outsourced clinical development services have depreciated by 4.91% over the course of the past month, underperforming the Medical sector's gain of 3.49% and the S&P 500's gain of 6.29%. The investment community will be paying close attention to the earnings performance of Medpace in its upcoming release. The company is predicted to post an EPS of $2.99, indicating an 8.73% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $539.75 million, indicating a 2.21% growth compared to the corresponding quarter of the prior year. MEDP's full-year Zacks Consensus Estimates are calling for earnings of $12.71 per share and revenue of $2.18 billion. These results would represent year-over-year changes of +0.63% and +3.54%, respectively. Investors should also take note of any recent adjustments to analyst estimates for Medpace. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Medpace presently features a Zacks Rank of #3 (Hold). Looking at its valuation, Medpace is holding a Forward P/E ratio of 23.47. For comparison, its industry has an average Forward P/E of 16.63, which means Medpace is trading at a premium to the group. Investors should also note that MEDP has a PEG ratio of 5.38 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Medical Services industry stood at 1.38 at the close of the market yesterday. The Medical Services industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 29% echelons of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
09-06-2025
- Business
- Yahoo
CON or MEDP: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Medical Services sector might want to consider either Concentra Group (CON) or Medpace (MEDP). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits. Concentra Group and Medpace are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CON has an improving earnings outlook. But this is only part of the picture for value investors. Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels. Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use. CON currently has a forward P/E ratio of 16.25, while MEDP has a forward P/E of 23.32. We also note that CON has a PEG ratio of 2.08. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MEDP currently has a PEG ratio of 5.35. Another notable valuation metric for CON is its P/B ratio of 9.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MEDP has a P/B of 14.36. Based on these metrics and many more, CON holds a Value grade of B, while MEDP has a Value grade of C. CON sticks out from MEDP in both our Zacks Rank and Style Scores models, so value investors will likely feel that CON is the better option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Concentra Group Holdings Parent, Inc. (CON) : Free Stock Analysis Report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
