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With a market cap of $19.2 billion, Labcorp Holdings Inc. (LH) is a leading global life sciences company specializing in diagnostic testing and drug development services. The Burlington, North Carolina-based company provides comprehensive healthcare solutions, including laboratory testing, clinical trials, and research support, serving clients in various industries worldwide.
Companies valued at $10 billion or more are classified as "large-cap" stocks. Labcorp Holdings fits right into this category, showcasing its substantial scale, stability, and leadership in the healthcare and diagnostics sector. Its market leadership stems from its expansive diagnostic testing capabilities, robust clinical trial services, and strong global presence. The company leverages cutting-edge technology and an extensive network to deliver reliable, high-quality testing solutions to healthcare providers and patients.
LH shares are trading 7.5% below their 52-week high of $247.99, which they hit on Nov. 11. The stock has gained 4% over the past three months, underperforming the S&P 500 Index’s ($SPX) 5.4% returns over the same time frame.
In the longer term, LH has soared 10.3% over the past six months, while SPX has surged 10.9%. LH’s shares have gained 2.4% over the past 52 weeks compared to SPX's 27% rally.
LH has been trading above its 200-day moving average since late October. However, the stock has been trading under its 50-day moving average recently.
On Oct. 24, shares of LH climbed 4.6% after its better-than-expected Q3 earnings release. The company reported an adjusted EPS of $3.50, marking a nearly 3.6% increase from the previous year and exceeding Wall Street’s expectations of $3.48. Revenue rose by 7.2% year-over-year to $3.28 billion, surpassing the consensus estimate of $3.26 billion. The growth was driven by strong performance in the diagnostics laboratories segment.
Highlighting the contrast in performance, rival Quest Diagnostics Incorporated (DGX) has outperformed LH with a 12.2% gain over the past year.
Analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 16 analysts in coverage. The mean price target is $264.56, suggesting a premium of 15.3% to its current levels.
