Labcorp Holdings Inc. (LH) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Labcorp Holdings (LH) has shown strong stock performance, reaching a 52-week high and outperforming the broader medical sector and industry [1][2]. Financial Performance - Labcorp has consistently exceeded earnings expectations, reporting EPS of $4.35 against a consensus estimate of $4.14 in its last earnings report [2]. - For the current fiscal year, Labcorp is projected to achieve earnings of $16.3 per share with revenues of $14 billion, reflecting an 11.87% increase in EPS and a 7.65% increase in revenues [3]. - The next fiscal year forecasts earnings of $17.89 per share on $14.7 billion in revenues, indicating a year-over-year change of 9.74% in EPS and 4.98% in revenues [3]. Valuation Metrics - Labcorp's current trading metrics include a P/E ratio of 17.2X for the current fiscal year, which is above the peer industry average of 16.7X [7]. - The stock trades at a trailing cash flow multiple of 12.5X compared to the peer group's average of 10.1X, and has a PEG ratio of 1.79, positioning it favorably for value investors [7]. Zacks Rank and Style Scores - Labcorp holds a Zacks Rank of 2 (Buy) due to a positive earnings estimate revision trend, making it a suitable choice for investors [8]. - The company has a Value Score of A, a Growth Score of B, and a Momentum Score of F, resulting in a combined VGM Score of A [6][8]. Industry Comparison - The Medical Services industry is performing well, ranking in the top 41% of all industries, providing favorable conditions for Labcorp and its peers [11]. - Solventum Corporation (SOLV), a competitor, has a Zacks Rank of 1 (Strong Buy) and is expected to post earnings of $5.89 per share on revenues of $8.36 billion for the current fiscal year [9][10].