Labcorp(US:LH) ZACKS·2025-10-21 14:16Company Performance - Labcorp Holdings (LH) has seen a stock increase of 4.3% over the past month, reaching a new 52-week high of $291.78, and has gained 26.9% since the start of the year, outperforming the Zacks Medical sector's 1.7% gain and the Zacks Medical Services industry's 16.2% return [1] - The company has a strong record of positive earnings surprises, beating the Zacks Consensus Estimate in each of the last four quarters, with the latest EPS reported at $4.35 against a consensus estimate of $4.14 [2] - For the current fiscal year, Labcorp is expected to post earnings of $16.3 per share on revenues of $14.01 billion, reflecting an 11.87% change in EPS and a 7.68% change in revenues [3] Valuation Metrics - Labcorp's current valuation metrics indicate a trading multiple of 17.9X current fiscal year EPS estimates, which is above the peer industry average of 16.9X, and a trailing cash flow basis of 13X compared to the peer group's average of 10.6X [7] - The stock has a PEG ratio of 1.86, which does not place it in the top echelon from a value perspective [7] Zacks Rank and Style Scores - Labcorp holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts, which is a positive indicator for potential future gains [8] - The company has a Value Score of B, a Growth Score of B, and a Momentum Score of C, resulting in a combined VGM Score of A, suggesting it meets the criteria for strong investment potential [6][9] Industry Comparison - In comparison to industry peers, CVS Health Corporation (CVS) also shows strong performance with a Zacks Rank of 2 (Buy) and a Value Score of A, indicating it is a viable competitor in the market [10] - CVS Health Corporation reported earnings that beat consensus estimates by 23.13%, with expected earnings of $6.36 per share on revenues of $392.28 billion for the current fiscal year [11]