Does Medpace Holdings (MEDP) Have a Long Runway For Growth?

Madison Investments, an investment advisor, released its “Madison Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) returned 5.2% compared to the 8.5% increase for the Russell Midcap Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Madison Mid Cap Fund highlighted stocks such as Medpace Holdings, Inc. (NASDAQ:MEDP). Medpace Holdings, Inc. (NASDAQ:MEDP) is a clinical research-based drug and medical device development services provider. The one-month return of Medpace Holdings, Inc. (NASDAQ:MEDP) was 8.26%, and its shares gained 37.25% of their value over the last 52 weeks. On September 18, 2025, Medpace Holdings, Inc. (NASDAQ:MEDP) stock closed at $501.94 per share, with a market capitalization of $14.101 billion.

Madison Mid Cap Fund stated the following regarding Medpace Holdings, Inc. (NASDAQ:MEDP) in its second quarter 2025 investor letter:

“We added one new investment in the quarter, Medpace Holdings, Inc. (NASDAQ:MEDP). Medpace is a fast growing contract research organization (CRO), focused on providing clinical trial services to small biotech companies. The company is run by founder Dr. August Troendle, a true owner-operator who still owns 18% of the company. Over time, its concentration on small biotech customers has led to a differentiated and advanced set of expertise in the market, especially within the therapeutic areas of oncology and metabolic disorders. With only a ~5% share of the addressable market, the company has a long growth runway ahead. A weak biotech funding environment has caused growth to decelerate, causing valuation to compress to attractive levels.”

Medpace Holdings, Inc. (NASDAQ:MEDP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held Medpace Holdings, Inc. (NASDAQ:MEDP) at the end of the second quarter, consistent with the previous quarter. Medpace Holdings, Inc. (NASDAQ:MEDP) reported revenue of $603.3 million in the second quarter 2025, representing an increase of 14.2% year-over-year. While we acknowledge the risk and potential of Medpace Holdings, Inc. (NASDAQ:MEDP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Medpace Holdings, Inc. (NASDAQ:MEDP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Medpace Holdings, Inc. (NASDAQ:MEDP) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.