Core Viewpoint - The article emphasizes the importance of value investing and highlights Labcorp (LH) as a strong value stock opportunity based on various financial metrics [2][4][7] Company Analysis - Labcorp (LH) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4] - The Forward P/E ratio for LH is 15.79, which is lower than the industry average of 18.23, suggesting that LH may be undervalued [4] - LH's Forward P/E has fluctuated between 12.57 and 17.15 over the past 12 months, with a median of 14.37 [4] - The PEG ratio for LH is 1.88, which is lower than the industry average of 2.07, indicating favorable growth expectations relative to its price [5] - LH's PEG has ranged from 1.41 to 1.88 in the past year, with a median of 1.59 [5] - The P/B ratio for LH is 2.35, significantly lower than the industry average of 4.47, further supporting the notion of undervaluation [6] - Over the past 52 weeks, LH's P/B has varied between 2.04 and 2.52, with a median of 2.33 [6] - Overall, the financial metrics suggest that Labcorp is likely undervalued, making it an attractive investment opportunity [7]

Labcorp Holdings Inc. (LH) , or Labcorp, is targeting high-growth areas as part of its expansion. By partnering with health systems and regional local laboratories, the company is leveraging science and innovation to lead in important therapeutic areas. Moreover, the LaunchPad initiative is contributing to strong margin performance. Yet, the adverse macroeconomic impacts and currency fluctuations may dent its growth.In the past year, this Zacks Rank #3 (Hold) stock has risen 1.3% compared with the 1.2% grow ...

Company Overview - Labcorp has entered into a comprehensive strategic agreement with Graves Gilbert Clinic, the largest physician-owned medical group in South-Central Kentucky, aiming to reduce costs, improve access, and reinforce their position as a high-value care provider in the region [9] - The company has a market capitalization of $19.19 billion and is expected to grow earnings by 7.1% on a 0.7% improvement in revenues, according to the Zacks Consensus Estimate [14] - Labcorp has surpassed earnings estimates in each of the trailing four quarters, with an average beat of 2.87% [14] Strategic Collaborations and Acquisitions - Labcorp has established strategic collaborations with local and regional health systems, enhancing services for patients and providers [1] - The company has an extensive pipeline of potential hospital and local laboratory acquisitions, presenting ample opportunities for growth [2] - Labcorp recently acquired select assets of MAWD Pathology Group's clinical and women's health testing businesses and finalized the acquisition of select outreach laboratory services from Ballad Health, aiming to enhance access to comprehensive, high-quality laboratory services [19] Market Performance and Industry Prospects - Labcorp shares have gained 1.1% since the announcement of the strategic agreement with Graves Gilbert Clinic on Dec. 19, finishing at $229.49 [2] - In the past three months, Labcorp shares have gained 3.4% compared with the industry's 1.2% rise [6] - The global clinical laboratory services market was valued at $233.24 billion in 2023 and is expected to grow at a compound annual rate of 3.5% through 2030 [4] - Market growth is driven by factors such as the increasing burden of chronic diseases and the growing demand for early diagnostic tests, as well as rapid advancements in data management and sample preparation [17] Product Development and Innovation - Labcorp announced the commercial availability of its new H5 bird flu molecular test in the United States, developed with support from the CDC to increase access and testing capacity amid a multistate outbreak of the H5N1 virus in poultry and dairy cows [5] Industry Comparisons - Penumbra (PEN), Haemonetics (HAE), and Phibro Animal Health (PAHC) are better-ranked stocks in the broader medical space, each carrying a Zacks Rank 2 (Buy) [7] - Phibro Animal Health's fiscal 2025 earnings per share estimates have increased 1.9% to $1.62 in the past 30 days, with shares surging 85.6% in the past year compared with the industry's 11.3% rise [8] - Haemonetics' fiscal 2025 earnings per share estimates have remained constant at $4.59 in the past 30 days, with shares dropping 10.9% in the past year against the industry's growth of 11.3% [18]

Company Overview - Labcorp has a market capitalization of $19 41 billion and an earnings yield of 6 3%, which is favorable compared to the industry's 4 9% yield [3] - The company surpassed earnings estimates in each of the trailing four quarters, with an average beat of 2 87% [3] - Labcorp shares have risen 9 1% in the past six months, outperforming the industry's 1 3% decline [10] New Product Launch - Labcorp announced the commercial availability of its new H5 bird flu molecular test in the United States, developed in collaboration with the CDC [1] - The test uses PCR technology and a specific reagent to detect H5 virus genetic material, with results reported to patients and physicians [5] - The launch is timely given a multistate outbreak of H5 bird flu in poultry and dairy cows, with several human cases identified in U S dairy and poultry workers [4] Strategic Collaborations and Acquisitions - Labcorp's partnership with the CDC on the H5 bird flu test builds on previous collaborations for testing emerging viruses like Zika, SARS-CoV-2, and mpox [6] - The company is acquiring select assets of MAWD Pathology Group to expand its laboratory services and testing capabilities in Kansas City and surrounding areas [9] Industry Prospects - The global poultry diagnostics market was valued at $772 4 million in 2023 and is projected to grow at a CAGR of 9 8% through 2030 [7] - Growth is driven by increasing prevalence of poultry diseases and technological advancements in diagnostic tools [7] Stock Performance and Rankings - Labcorp shares fell 2% following the announcement of the new test, closing at $226 31 [2] - The company currently carries a Zacks Rank 3 (Hold) [11] - Better-ranked stocks in the medical space include Penumbra (PEN), Haemonetics (HAE), and Phibro Animal Health (PAHC), each with a Zacks Rank 2 (Buy) [11]

Company Overview - Labcorp Holdings, Inc. (LH) has entered into an agreement to acquire select assets of MAWD Pathology Group's clinical and women's health testing businesses, with the transaction expected to close in early 2025 [1] - The acquisition aims to enhance access to high-quality laboratory services and expanded testing capabilities in the Kansas City region [4] Stock Performance - Following the acquisition announcement, Labcorp shares dipped nearly 1%, closing at $229.62, but the company has a promising pipeline of potential acquisitions that could drive growth [2] - Over the past six months, Labcorp shares have increased by 11.3%, outperforming the industry average rise of 0.5% [9] Financial Outlook - Labcorp has a market capitalization of $19.41 billion, with earnings expected to grow by 7.1% and revenues improving by 0.7% according to the Zacks Consensus Estimate [3] - The company has consistently surpassed earnings estimates in the past four quarters, with an average beat of 2.87% [3] Industry Context - The global clinical laboratory services market was valued at $233.24 billion in 2023 and is projected to grow at a compound annual growth rate of 3.5% through 2030, driven by the increasing burden of chronic diseases and demand for early diagnostic tests [6] - Advancements in data management and sample preparation are expected to further boost market growth during the forecast period [6] Recent Developments - Labcorp has recently finalized its acquisition of select outreach laboratory services from Ballad Health to enhance laboratory service access in the Appalachian region [8] - The company has also acquired assets from Lab Works, an independent clinical laboratory in Birmingham, AL, in November 2024 [8]

New test supports public health preparedness efforts and testing infrastructure amid multistate outbreak of H5 bird flu in poultry and dairy cows BURLINGTON, N.C., Dec. 17, 2024 /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, announced today the commercial availability of its new H5 bird flu molecular test to aid in the diagnosis of human infection with H5 bird flu. The test is available in the United States to physicians to order for patients suspect ...

Research to be presented in a joint poster session with Labcorp at the 2024 San Antonio Breast Cancer SymposiumBOSTON and BURLINGTON, N.C., Nov. 26, 2024 /PRNewswire/ -- Outcomes4Me Inc., the developer of the first and only end-to-end, actionable cancer platform, announced today it has been selected to present the results of a biomarker awareness study, conducted with Labcorp, a global leader of innovative and comprehensive laboratory services, at the prestigious 2024 San Antonio Breast Cancer Symposium (SA ...

Julia Wang Named Chief Financial Officer Beginning December 2, 2024BURLINGTON, N.C., Nov. 19, 2024 /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, announced today that Executive Vice President and Chief Financial Officer (CFO) Glenn Eisenberg will retire from the company and Julia Wang will join on December 2, 2024, as Executive Vice President and Chief Financial Officer. Mr. Eisenberg will remain at Labcorp as Special Advisor to the CEO through April ...

Labcorp Holdings Inc. (LH) , or Labcorp, is positioning itself for sustained growth with a series of strategic acquisitions and partnerships. With a growing emphasis on cell and gene therapy, the company aims to become a preferred development lab by leveraging its drug development expertise, scientific prowess and pharma relationships. The LaunchPad initiative also nears its targeted goal, which is highly promising. However, adverse macroeconomic impacts and currency fluctuations may dent the company’s grow ...

Revenue Performance - Revenues for the nine months ended September 30, 2024, were $9,679.5 million, an increase of 6.0% from $9,128.3 million during the same period in 2023[89]. - Total revenues for the three months ended September 30, 2024, were $3,282.0 million, an increase of 7.4% over $3,056.8 million in the third quarter of 2023[90]. - Dx revenues for the three months ended September 30, 2024, were $2,553.5 million, an increase of 8.9% over $2,344.7 million in the third quarter of 2023[91]. - BLS revenues for the three months ended September 30, 2024, were $737.7 million, an increase of 2.6% over $719.1 million in the third quarter of 2023[91]. - Revenues for the nine months ended September 30, 2024, increased by 6.0% to $9,679.5 million, driven by organic revenue growth of 3.4% and acquisitions net of divestitures contributing 2.4%[104]. - Dx segment revenues for the nine months ended September 30, 2024, were $7,558.1 million, reflecting a 6.9% increase from $7,068.3 million in the same period of 2023[104]. Organic Growth - The increase in organic revenue for the three months ended September 30, 2024, was 4.2%, driven by a 4.8% increase in the Company's organic Base Business[90]. - The organic growth for the nine months ended September 30, 2024, was defined as an increase in revenue excluding the impact of acquisitions, divestitures, and currency[89]. - The 4.5% increase in the Company's organic Base Business was partially offset by a 1.1% decrease in COVID-19 PCR testing[89]. - The Company experienced a 5.0% increase in organic revenue for Dx, driven by a 5.7% increase in the Base Business[91]. - The Company reported a 2.2% increase in organic volume for Dx for the three months ended September 30, 2024[91]. Costs and Expenses - Cost of revenues increased by 7.8% to $2,377.6 million for the three months ended September 30, 2024, compared to $2,205.6 million in the same period of 2023, with cost of revenues as a percentage of revenues rising to 72.4% from 72.2%[92][93]. - Selling, general and administrative expenses rose by 8.2% to $568.6 million for the three months ended September 30, 2024, compared to $525.5 million in the same period of 2023, with expenses as a percentage of revenues increasing to 17.3% from 17.2%[94]. - Cost of revenues for the nine months ended September 30, 2024, increased by 5.6% to $6,951.4 million, with cost of revenues as a percentage of revenues decreasing to 71.8% from 72.1%[106]. - Selling, general and administrative expenses increased to $1,634.8 million for the nine months ended September 30, 2024, from $1,488.5 million in 2023, reflecting a change of 9.8%[107]. - Amortization of intangibles and other assets rose by 15.8% to $186.0 million for the nine months ended September 30, 2024, compared to $160.6 million in 2023[107]. - Restructuring and other charges increased by 138.9% to $18.0 million for the three months ended September 30, 2024, compared to $7.5 million in the same period of 2023[96]. - Restructuring and other charges increased by 12.3% to $34.6 million for the nine months ended September 30, 2024, from $30.8 million in 2023[110]. Operating Income - Total operating income for the three months ended September 30, 2024, was $254.1 million, a slight increase of 0.7% from $252.3 million in the same period of 2023[102]. - Operating income for the Dx segment was $1,246.8 million, a slight increase of 0.7% from $1,237.5 million in the same period of 2023[121]. - BLS segment operating income increased by 14.2% to $328.2 million for the nine months ended September 30, 2024, compared to $287.2 million in 2023[121]. Cash Flow and Financing - Net cash provided by operating activities from continuing operations was $808.6 million for the nine months ended September 30, 2024, up from $622.7 million in 2023[122]. - Net cash used for investing activities increased to $1,157.2 million in 2024 from $816.2 million in 2023, primarily due to increased business acquisitions[125]. - Net cash provided by financing activities was $1,326.6 million for the nine months ended September 30, 2024, compared to net cash used of $1,112.5 million in 2023[126]. - On September 23, 2024, the Company issued $2,000.0 million in Senior Notes with interest rates of 4.35%, 4.55%, and 4.80%, maturing in 2030, 2032, and 2034 respectively[127]. - As of September 30, 2024, the Company had $1,517.3 million in cash and $1,000.0 million available under its revolving credit facility, which matures in 2026[128]. - The Company authorized a new share repurchase plan for up to $1,000.0 million, with a total outstanding authorization of $1,355.4 million as of September 30, 2024[129]. - For the nine months ended September 30, 2024, the Company paid $183.0 million in common stock dividends and announced a cash dividend of $0.72 per share for Q4 2024, totaling approximately $61.0 million[129]. Foreign Exchange and Interest Rate Management - Approximately 13.6% of the Company's revenues for the nine months ended September 30, 2024, were denominated in foreign currencies, impacting financial results due to exchange rate fluctuations[133]. - A hypothetical 10% change in average exchange rates would have impacted income before income taxes by approximately $20.8 million for the nine months ended September 30, 2024[134]. - The Company had 9 open foreign exchange forward contracts with a total notional value of approximately $382.0 million as of September 30, 2024[135]. - The Company entered into fixed-to-variable interest rate swap agreements for $500.0 million of 2.70% senior notes due 2031 to hedge against interest rate fluctuations[136]. - The Company expects to remain in compliance with all covenants associated with its existing debt obligations for the next twelve months[128]. Acquisitions and Investments - The Company plans to acquire a 15% minority interest in SYNLAB for approximately $155.9 million, expected to close in early 2025[125]. - The AR Facility with PNC Bank allows for purchases of accounts receivable up to $300.0 million, potentially increasing to $700.0 million, with $300.0 million received under this facility during Q3 2024[127].