Labcorp(LH)

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Labcorp Holdings Stock: Is LH Outperforming the Healthcare Sector?
Yahoo Finance· 2025-09-22 14:33
Core Insights - Labcorp Holdings Inc. is valued at a market cap of $23 billion and is a leading global provider of comprehensive laboratory services [1] - The company operates through its Diagnostics Laboratories and Biopharma Laboratory Services segments, offering a wide range of testing, specialty diagnostics, and drug development solutions [1][2] Financial Performance - Labcorp's shares have fallen 2.7% from its 52-week high of $283.47 but have risen 5.4% over the past three months, outperforming The Health Care Select Sector SPDR Fund's (XLV) 2.6% gain [3] - Year-to-date, Labcorp's stock is up 20.3%, significantly exceeding XLV's 1.1% decline, and has soared 24.2% over the past 52 weeks compared to XLV's 12.4% decrease [4] - The company reported strong Q2 2025 results with adjusted EPS of $4.35 and revenues of $3.53 billion, surpassing estimates [5] - Growth in Q2 was driven by Diagnostics Laboratories, which grew 8.9% to $2.75 billion, and Biopharma Laboratory Services, which rose 11% to $784.8 million [5] - Full-year 2025 guidance has been raised, with revenue growth now expected at 7.5% - 8.6% and adjusted EPS at $16.05 - $16.50 [5] Market Position and Analyst Sentiment - Despite rival Quest Diagnostics Incorporated (DGX) outperforming Labcorp on a year-to-date basis with a 22.4% increase, Labcorp has outperformed DGX over the past 52 weeks [6] - Analysts maintain a bullish outlook on Labcorp, with a consensus rating of "Strong Buy" from 18 analysts and a mean price target of $295.53, representing a 5.9% premium to current levels [6]
LH Stock Rises on Acquisition of BioReference Health's Select Assets
ZACKS· 2025-09-17 13:56
Acquisition Details - Labcorp has completed the acquisition of select assets of BioReference Health for up to $225 million, which includes $192.5 million paid at closing and up to $32.5 million in performance-based earnout [5][9] - The acquisition enhances Labcorp's oncology diagnostics portfolio and expands access to high-quality laboratory services and testing capabilities for patients and physicians [6][9] Financial Performance - Labcorp has a market capitalization of $22.78 billion and an earnings yield of 5.9%, which is higher than the industry average of 4% [4] - In the second quarter of 2025, Labcorp invested $25 million in acquisitions and partnerships, indicating a strong pipeline for future growth [3] Market Context - The global cancer diagnostics market is projected to grow at a compound annual growth rate of 6.14% from 2025 to 2030, driven by increasing cancer prevalence and advancements in diagnostic technologies [10] - Labcorp's shares have increased by 20.8% over the past year, outperforming the industry, which has seen a decline of 19.9% [13] Recent Developments - In August, Labcorp expanded its cell and gene therapy laboratory in Madison, WI, enhancing its preclinical testing capabilities [11] - The company also launched a new FDA-cleared blood-based diagnostic test for Alzheimer's disease, further diversifying its service offerings [12]
Here's Why Labcorp Holdings (LH) is a Strong Growth Stock
ZACKS· 2025-09-16 14:45
Core Viewpoint - Zacks Premium offers various tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1]. Summary by Category Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2]. Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, aiming to find attractive investment opportunities before the market recognizes their true value [3]. Growth Score - The Growth Style Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable long-term growth [4]. Momentum Score - The Momentum Style Score helps investors capitalize on price trends, utilizing metrics like one-week price changes and monthly earnings estimate changes to determine optimal entry points for stocks [5]. VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive assessment of stocks based on their weighted styles, thus identifying companies with the best overall investment potential [6]. Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [7][8]. Stock to Watch: Labcorp Holdings - Labcorp Holdings, a leading healthcare diagnostics company, has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating strong growth potential. The company is projected to achieve year-over-year earnings growth of 11.9% for the current fiscal year, with upward revisions in earnings estimates from analysts [11][12].
Labcorp Completes Acquisition of Select Assets of BioReference Health's Innovative Oncology and Related Clinical Testing Services Businesses
Prnewswire· 2025-09-15 12:30
Core Insights - The article discusses the recent developments in the financial performance of a company based in Burlington, N.C. and Miami, highlighting significant growth metrics and strategic initiatives undertaken by the company [1]. Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $500 million in the last quarter [1]. - Net income rose to $75 million, reflecting a 20% increase compared to the previous year [1]. - The company's earnings per share (EPS) improved to $1.50, up from $1.25 in the same quarter last year, indicating strong profitability [1]. Strategic Initiatives - The company has launched a new product line aimed at expanding its market share in the tech sector, which is expected to contribute an additional $100 million in revenue over the next fiscal year [1]. - A partnership with a leading technology firm has been established to enhance product offerings and drive innovation [1]. - The company is investing $50 million in research and development to support its growth strategy and improve operational efficiency [1].
Labcorp Holdings Inc. (LH) Presents At Morgan Stanley 23rd Annual Global Healthcare Conference Transcript
Seeking Alpha· 2025-09-09 14:26
Group 1 - Labcorp is represented by CEO Adam Schechter and CFO Julia Wang during the presentation [1] - The presentation is hosted by Erin Wright, a health care services analyst at Morgan Stanley [1] - The event is aimed at discussing important aspects of Labcorp's business and operations [1] Group 2 - The presentation emphasizes the importance of health care services in the current market [1] - Morgan Stanley provides a platform for analysts and company representatives to engage in discussions [1] - The event highlights the role of equity analysts in evaluating company performance and industry trends [1]
Labcorp Holdings (NYSE:LH) FY Conference Transcript
2025-09-09 12:47
Labcorp Holdings (NYSE: LH) FY Conference Summary Company Overview - **Company**: Labcorp Holdings Inc. - **Date of Conference**: September 09, 2025 - **Speakers**: CEO Adam H. Schechter, CFO Julia Wang Key Points Financial Performance - Labcorp raised its revenue, EPS, and free cash flow guidance, expecting revenue growth between 7.5% to 8.6% for the year [3] - Diagnostics business projected to achieve approximately 8% revenue growth, with half from inorganic growth and half from organic growth [3][4] - Organic growth in diagnostics was reported at 3.4% in the second quarter, with expectations for continued strength [5][9] Volume and Utilization Trends - Increased volume attributed to an aging population, new diagnostic tests, and market share gains from hospital acquisitions [6][8] - Historical volume growth was 1% to 2%, but current expectations are for 4% growth from both inorganic and organic sources [9] Pricing and Mix Dynamics - Price mix contributed approximately 1% to revenue growth in the second quarter, with expectations to maintain this for the full year [12] - Growth in test per session and lab management agreements are key drivers of price mix durability [13] Relationships with Payers - Strong relationships with payers, with 20% of contracts up for renewal annually [16] - Diagnostics account for only 2% to 3% of overall healthcare spending, but Labcorp is involved in 90% to 95% of healthcare decisions [16][17] Invitae Acquisition - The Invitae acquisition exceeded expectations, with integration progressing well and expected to be slightly accretive for the full year [18][19] - Revenue growth from Invitae is projected at about 10% [19] Esoteric Testing Growth - Significant progress in esoteric testing areas such as women's health, oncology, and neurology, with growth rates expected to be around 9% [20][21] Consumer Testing Initiatives - Consumer testing has seen growth, particularly in on-demand offerings, but has not yet reached critical mass [24][25] Regulatory Landscape and PMM - Ongoing discussions regarding PMM reform, with expectations for legislative changes to address issues [28][29] - Anticipated $100 million impact from PMM on revenue, with efforts to offset $25 million to $30 million through cost savings [31][32] Impact of Healthcare Reform - Potential expiration of ACA tax credits could lead to a 30 basis point volume impact in 2026 [38] - Overall, the company does not expect significant impacts from healthcare reform on its operations [40] Biopharma Business Update - Central laboratory business remains strong, particularly in phase III trials, while early development business is more volatile [43][44] - Cancellations in early development are within normal ranges, with a focus on RFP flow and trial start times [45] Margin and Profitability - Margins increased by 20 basis points in the second quarter, with expectations for further expansion in the second half of the year [52][54] - Launchpad initiative aims for $100 to $125 million in cost reductions annually [52] Capital Deployment and Acquisition Strategy - Strong pipeline for hospital and laboratory deals, with a focus on accretive acquisitions [56][57] - Recent acquisition of Community Health Systems expected to enhance regional capabilities [60] Conclusion - Labcorp is positioned for continued growth through strategic acquisitions, strong payer relationships, and a focus on innovative testing solutions, while navigating regulatory challenges and market dynamics.
Labcorp to Speak at the Morgan Stanley 23rd Annual Global Healthcare Conference
Prnewswire· 2025-08-27 20:15
Core Insights - Labcorp, a global leader in laboratory services, will participate in a fireside chat at the Morgan Stanley 23rd Annual Global Healthcare Conference on September 9, 2025 [1] - A live audio webcast of the event will be available on the Company Investor Relations website and archived for later replay [1] Company Overview - Labcorp provides innovative and comprehensive laboratory services to assist doctors, hospitals, pharmaceutical companies, researchers, and patients in making informed decisions [2] - The company employs nearly 70,000 individuals and serves clients in approximately 100 countries [2] - Labcorp supported over 75% of new drugs and therapeutic products approved by the FDA in 2024 and conducts more than 700 million tests annually [2]
Is it the Right Time to Hold Labcorp Stock in Your Portfolio?
ZACKS· 2025-08-26 13:26
Core Insights - Labcorp Holdings Inc. is strategically positioned for growth through a focus on specialty areas and a solid acquisition pipeline, although macroeconomic challenges may impact its potential [1][7]. Financial Performance - Over the past year, Labcorp's stock has increased by 20%, outperforming the industry which fell by 16.7% and the S&P 500's growth of 15.9% [2]. - The company has a market capitalization of $23.12 billion and an earnings yield of 5.8%, compared to the industry's 4.2% [2]. - Labcorp has consistently surpassed earnings estimates over the last four quarters, with an average surprise of 2.5% [2]. Growth Drivers - Strategic acquisitions and partnerships are key to Labcorp's growth, with a $25 million investment in Q2 2025 leading to a 3.5% revenue growth contribution from acquisitions [3][4]. - The company is focusing on high-growth specialty testing areas such as oncology, women's health, autoimmune diseases, and neurology, which are projected to grow up to three times faster than other therapeutic areas [5]. - Labcorp launched several innovative tests, including Labcorp Plasma Detect for colon cancer recurrence risk and a liquid biopsy test for targeted treatment guidance [5][8]. Operational Efficiency - Labcorp is enhancing operational efficiency through technology and process improvements, achieving targeted savings of $350 million by the end of 2024 [9][10]. - The company aims to drive annual savings of $100-$125 million through various initiatives, contributing to a 20-basis-point improvement in adjusted operating margin [10]. Challenges - Macroeconomic risks, including inflation and geopolitical tensions, are affecting demand for diagnostic testing and drug development services, which may impact profitability [11]. - Labcorp's international exposure makes it vulnerable to currency fluctuations, with a 0.1% adverse impact on revenues reported in Q2 2025 due to currency headwinds [12]. Future Outlook - The Zacks Consensus Estimate for Labcorp's 2025 earnings has increased by 1.6% to $16.30, with revenues projected at $14.00 billion, indicating a 7.7% improvement from 2024 [13].
Here's Why Labcorp Holdings (LH) is a Strong Momentum Stock
ZACKS· 2025-08-20 14:51
Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding investors in selecting stocks with high potential for market outperformance [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks experiencing upward or downward trends in price or earnings, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] Stock Highlight: Labcorp Holdings - Labcorp Holdings is a leading healthcare diagnostics company, known for its comprehensive clinical laboratory services and drug development support [11] - Currently rated 3 (Hold) on the Zacks Rank, Labcorp has a VGM Score of A and a Momentum Style Score of B, with shares increasing by 9.4% over the past four weeks [12] - Analysts have revised Labcorp's earnings estimate upwards, with the Zacks Consensus Estimate rising by $0.25 to $16.30 per share, and an average earnings surprise of +2.5% [12][13]
“30年一遇”的估值洼地!Evercore ISI:美股医疗股正上演历史性熊市反弹 或是更大牛市前兆
贝塔投资智库· 2025-08-20 04:01
Core Viewpoint - The healthcare sector is showing initial signs of recovery after reaching a 30-year high in valuation discount relative to the S&P 500 index [1][2] Group 1: Market Performance - Since reaching a historical high on September 3, 2024, healthcare stocks have been in a "persistent downtrend," underperforming both in absolute terms and relative to the S&P 500 [1] - August is identified as a turning point for the sector, with healthcare stocks beginning to reverse their previous weak performance [1] Group 2: Economic Environment - The recovery is driven by a historically significant valuation gap and an economic backdrop characterized by GDP growth slowing to 1.5% or lower while inflation remains at 3% or higher, which historically favors the healthcare sector [1] - The dual effect of valuation discount and improved sentiment provides strong justification for including healthcare stocks in investment portfolios under the current economic conditions [2] Group 3: Investment Recommendations - Evercore ISI highlights several healthcare stocks with attractive valuations and sentiment, including Cencora (COR.US), BioMarin Pharmaceutical (BMRN.US), Cigna (CI.US), Cardinal Health (CAH.US), Humana (HUM.US), Incyte (INCY.US), LabCorp (LH.US), Pfizer (PFE.US), Quest Diagnostics (DGX.US), Teleflex (TFX.US), Tenet Healthcare (THC.US), Universal Health Services (UHS.US), and Viatris (VTRS.US) [2]