LHLabcorp Holdings Inc. demonstrates strong fundamental performance with consistent earnings growth and a solid balance sheet. While thematic tailwinds in healthcare diagnostics are present, current technical indicators suggest a potential for short-term consolidation. Recommended for investors seeking long-term stability and growth in the healthcare sector.
Labcorp benefits from several positive thematic trends in healthcare, including the increasing demand for diagnostic testing and personalized medicine. However, the competitive landscape and evolving healthcare policies present some challenges.
Labcorp exhibits robust financial health, characterized by improving profitability, consistent revenue generation, and a manageable debt level. Strong free cash flow and effective revenue-to-profit conversion further bolster its fundamental strength.
Labcorp's stock exhibits a mixed technical picture. While long-term moving averages suggest an uptrend, short-term indicators like RSI and MACD point towards potential overbought conditions and a possible consolidation phase.
| Factor | Score |
|---|---|
| Healthcare Diagnostics Demand | 85 |
| Personalized Medicine & Genetics | 75 |
| Healthcare Policy & Reimbursement | 55 |
| Competition in Lab Services | 65 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 75 |
| Growth | 80 |
| Balance Sheet Health | 70 |
| Cash Flow | 85 |
| Earnings Consistency | 88 |
| Factor | Score |
|---|---|
| Trend Analysis | 70 |
| Momentum | 60 |
| Volume Confirmation | 65 |
| Support & Resistance | 60 |
| MACD | 55 |
Consistent Earnings Beat
The company has consistently beaten earnings per share (EPS) estimates for the past four quarters, with surprises ranging from 1.31% to 7.53%.
Reasonable Price-to-Sales Ratio
The trailing Price-to-Sales (P/S) ratio of 2.2 is below the industry average and suggests that the company's sales are currently undervalued relative to its share price.
Elevated Price-to-Earnings Ratio
The trailing P/E ratio of 42.2 is significantly higher than the company's historical averages and the broader market, suggesting potential overvaluation.
Slowing Revenue Growth
While revenue increased year-over-year, the rate of growth has decelerated from 18.1% in 2021 to 5.7% in 2024, indicating a potential slowdown in business expansion.
July 2025
24
Next Earnings Date
H: $4.27
A: $4.12
L: $4.04
H: 3.58B
A: 3.55B
L: 3.52B
August 2025
28
Ex-Dividend Date
September 2025
11
Next Dividend Date
Labcorp Holdings Inc. provides laboratory services. It operates through two segments, Diagnostics Laboratories and Biopharma Laboratory Services. The company offers various tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid, PAP, hemoglobin A1C, prostate-specific antigens, sexually transmitted diseases, hepatitis C, vitamin D, microbiology cultures and procedures, and alcohol and other substance-abuse tests. It also provides specialty testing services comprising gene-based and esoteric testing; advanced tests target specific diseases; services related to anatomic pathology/oncology, cardiovascular disease, coagulation, diagnostic genetics, endocrinology, infectious disease, women's health, pharmacogenetics, parentage and donor testing, occupational testing services, medical drug monitoring services, chronic disease programs, and kidney stone prevention tests; and health and wellness services to employers and managed care organizations (MCOs). In addition, the company offers online and mobile applications that enable patients to check offerings, schedule PSC visits, check-in upon PSC arrival, complete documentation, access tests and test results, and manage their accounts; online applications for providers, MCOs, and accountable care organizations; specimen collection services; and drug development, medical device, and companion diagnostic development solutions, as well as support for crop protection and chemical testing. It serves pharmaceutical, biotechnology, medical device, and diagnostics companies; and MCOs, employer plans, other health insurance providers, governments, physician, large provider organizations, other healthcare providers, hospitals and health systems, patients and consumers, crop protection and chemical companies, academic institutions, independent clinical laboratories, and retailers. The company was founded in 1995 is headquartered in Burlington, North Carolina.
284.51 USD
The 39 analysts offering 1 year price forecasts for LH have a max estimate of 323.00 and a min estimate of 248.00.