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Burlington, North Carolina-based Labcorp Holdings Inc. (LH) is a provider of laboratory services. It offers various tests, such as blood chemistry analyses, urinalyses, thyroid, PAP, substance abuse, and many more. With a market cap of $20.9 billion, Labcorp Holdings operates through Diagnostics Laboratories and Biopharma Laboratory Services segments.
While the healthcare major has lagged behind the broader market over the past year, it has notably outperformed in 2025. LH stock has gained 14.7% over the past 52 weeks and soared 9.6% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 17.6% returns over the past year and 1.7% gains in 2025.
Zooming in further, Labcorp has also outperformed the Health Care Select Sector SPDR Fund’s (XLV) marginal 16 basis point drop over the past year and 7.3% gains on a YTD basis.
Labcorp’s stock observed a marginal 90 basis point drop after the release of its mixed Q4 results on Feb. 6. Driven by robust organic and inorganic growth in revenues, Labcorp’s overall topline soared 9.8% year-over-year to $3.3 billion, exceeding the Street’s expectations. However, due to higher cost of sales, the company reported a 16 basis point contraction in gross margin to 26.9% and due to an 11.7% surge in SG&A expenses Labcorp’s adjusted operating margin also experienced a notable contraction. Nonetheless, its adjusted net income increased by a modest 2.9% year-over-year to $290.4 million and its adjusted EPS of $3.45 surpassed the Street’s expectations by 1.5%.
On a more positive note, Labcorp’s CEO Adam Schechter expects the company to deliver strong growth and margin expansion across both its segments in 2025.
For the current fiscal 2025, ending in December, analysts expect Labcorp to report a 9.9% year-over-year growth in adjusted EPS to $16.01. Furthermore, the company has a robust earnings surprise history. Labcorp has surpassed the Street’s bottom-line expectations in each of the past four quarters.
Among the 16 analysts covering the LH stock, the consensus rating is a “Strong Buy.” That’s based on 12 “Strong Buy” and four “Hold” ratings.
This configuration is notably more bullish than three months ago when the stock had a consensus “Moderate Buy” rating overall and only 10 analysts gave “Strong Buy” recommendations.
On Feb. 10, Piper Sandler analyst David Westenberg reiterated a “Hold” rating on LH, while setting a price target of $260.
LH’s mean price target of $273.06 represents an 8.6% premium to current price levels, while its street-high target of $293 indicates a 16.5% upside potential.
