Labcorp Holdings (LH) AI Stock Analysis

• Market Cap: $21.91B
• Dividend Yield: 1.11%
• Average Volume (3M): 668.80K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 0.39
• Revenue Growth: 7.13%
• EPS Growth: 74.73%
• Country: US
• Employees: 60,900
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Equipment & Services
• EPS (TTM): 3.84
• Shares Outstanding: 83,668,570
• 10 Day Avg. Volume: 779,298
• 30 Day Avg. Volume: 668,804
• PEG Ratio: -15.67
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.02
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: 4.34
• 1Y Price Target: $281.00
• Price Target Upside: 7.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: $295.00 ▲(12.64%Upside)

Labcorp Holdings has a robust financial position with strong cash flow and operational efficiency. Positive momentum in technical indicators and strategic growth initiatives highlighted in the earnings call bolster the outlook. However, high valuation metrics and external challenges like tariff impacts temper the overall score.

Positive Factors

Growth Prospects

Labcorp Holdings Inc. is expected to achieve growth at the higher end of its long-term organic volume growth target, driven by market share gains and innovation.

Market Position

Labcorp remains a top pick given lower exposure to the macro headwinds impacting the broader Life Science & Diagnostic coverage.

Strategic Acquisitions

The company's recent strategic acquisitions, such as Invitae, are seen as enhancing its Specialty testing capabilities and contributing to revenue growth.

Negative Factors

Regulatory Concerns

The potential for regulatory changes in clinical lab regulation and the impact of PAMA reform are areas of concern.

Revenue Challenges

Labcorp fell short of consensus revenue expectations by 2% due to weather-related headwinds impacting diagnostics and lower COVID-19 vaccine revenue.

Labcorp Holdings Business Overview & Revenue Model

Company Description

Laboratory Corporation of America Holdings operates as a global life sciences company that provides vital information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make clear and confident decisions. It operates in two segments, Labcorp Diagnostics (Dx) and Labcorp Drug Development (DD). It offers various tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, PAP tests, hemoglobin A1C and vitamin D, prostate-specific antigens, tests for sexually transmitted diseases, hepatitis C tests, microbiology cultures and procedures, and alcohol and other substance-abuse tests. The company also provides specialty testing services comprising gene-based and esoteric testing; advanced tests target specific diseases, including anatomic pathology/oncology, cardiovascular disease, coagulation, diagnostic genetics, endocrinology, infectious disease, women's health, pharmacogenetics, and parentage and donor testing; and occupational testing services, medical drug monitoring services, chronic disease programs, and kidney stone prevention tests. It provides online and mobile applications to enable patients to check test results; and online applications for managed care organizations and accountable care organizations. It offers end-to-end drug development, medical device, and companion diagnostic development solutions from early-stage research to clinical development and commercial market access. It serves managed care organizations, pharmaceutical, biotechnology, medical device and diagnostics companies, governmental agencies, physicians and other healthcare providers, hospitals and health systems, employers, patients and consumers, contract research organizations, and independent clinical laboratories. Laboratory Corporation of America Holdings has a collaboration agreement with Tigerlily Foundation to increase clinical trial diversity for women of color. The company was incorporated in 1994 and is headquartered in Burlington, North Carolina.

How the Company Makes Money

Labcorp makes money primarily through its two main segments: Labcorp Diagnostics and Labcorp Drug Development. The Diagnostics segment generates revenue by providing a comprehensive range of laboratory testing services to hospitals, healthcare providers, and patients, including routine blood tests, genetic testing, and pathology services. This segment benefits from a broad network of laboratories and service centers, enabling it to offer timely and accurate diagnostic information. The Drug Development segment, on the other hand, earns revenue by offering clinical trial management, drug development consulting, and other related services to pharmaceutical and biotechnology companies. This segment leverages Labcorp's scientific expertise and global infrastructure to support the development of new drugs and therapies. Significant partnerships with healthcare providers, insurance companies, and pharmaceutical firms, as well as a strong focus on innovation and technology, contribute to Labcorp's revenue streams and market position.

Labcorp Holdings Financial Statement Overview

Summary

Labcorp Holdings presents a solid financial position with stable income, a well-structured balance sheet, and strong cash flow generation. While growth is moderate, profitability and cash flow metrics suggest operational efficiency and effective financial management.

Income Statement

Labcorp Holdings exhibits moderate profitability and growth. The TTM gross profit margin is strong at 27.41%, and the net profit margin stands at 5.54%. Revenue growth rate from the previous year is 1.29%, indicating stable but slow growth. EBIT and EBITDA margins are at 8.37% and 12.37%, respectively, showing a healthy operational efficiency.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.78, reflecting manageable leverage. Return on equity is moderate at 8.79%, indicating decent shareholder returns. The equity ratio is 47.20%, suggesting a balanced capital structure between debt and equity.

Cash Flow

Cash flow metrics are robust, with a free cash flow growth rate of 5.12% over the previous year. The operating cash flow to net income ratio is 2.24, indicating strong cash generation relative to profits. Free cash flow to net income ratio is 1.58, further supporting the company's solid cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.18B	13.01B	12.16B	14.88B	16.12B	13.98B
Gross Profit	3.61B	3.50B	3.36B	4.39B	5.62B	4.95B
EBITDA	1.80B	1.81B	1.35B	1.95B	4.28B	3.25B
Net Income	730.80M	746.00M	418.00M	1.28B	2.38B	1.56B
Balance Sheet
Total Assets	17.60B	18.38B	16.73B	20.16B	20.39B	20.07B
Cash, Cash Equivalents and Short-Term Investments	369.40M	1.52B	536.80M	430.00M	1.47B	1.32B
Total Debt	6.52B	7.27B	5.95B	6.29B	6.34B	6.76B
Total Liabilities	9.28B	10.31B	8.83B	10.06B	10.11B	10.71B
Stockholders Equity	8.31B	8.05B	7.88B	10.10B	10.27B	9.36B
Cash Flow
Free Cash Flow	1.15B	1.10B	874.10M	1.47B	2.65B	1.75B
Operating Cash Flow	1.63B	1.59B	1.33B	1.96B	3.11B	2.14B
Investing Cash Flow	-1.31B	-1.37B	-1.17B	-1.65B	-884.60M	-643.20M
Financing Cash Flow	-48.10M	779.90M	-59.30M	-1.32B	-2.07B	-517.40M

Labcorp Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 261.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LH, the sentiment is Positive. The current price of 261.89 is above the 20-day moving average (MA) of 259.96, above the 50-day MA of 250.04, and above the 200-day MA of 236.77, indicating a bullish trend. The MACD of 3.46 indicates Positive momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 66.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LH.

Labcorp Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGX	79 Outperform	$19.75B	22.36	13.35%	1.81%	9.38%	6.43%
IQV	77 Outperform	$28.41B	22.38	21.65%	―	2.84%	-0.16%
LH	77 Outperform	$21.91B	30.21	8.98%	1.11%	7.13%	74.73%
ICLR	75 Outperform	$12.12B	16.33	8.01%	―	-0.48%	11.47%
BIIB	71 Outperform	$19.52B	13.15	9.19%	―	1.25%	26.10%
THC	71 Outperform	$15.93B	11.34	38.12%	―	-1.79%	-41.85%
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%

Labcorp Holdings Corporate Events

Labcorp Holdings Secures $1 Billion Credit Facility

On June 27, 2025, Labcorp Holdings Inc. entered into a Fourth Amended and Restated Credit Agreement with Bank of America and other lenders, establishing a $1 billion senior unsecured revolving credit facility set to mature in 2030. This agreement replaces the previous credit facility due in 2026 and includes options to increase the credit amount, reflecting Labcorp’s strategic financial positioning and potential for expansion.

The most recent analyst rating on (LH) stock is a Buy with a $274.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Holdings to Announce Q2 2025 Financial Results

Labcorp Holdings Inc. announced it will release its financial results for the second quarter of 2025 on July 24, 2025, before the market opens. The company will host a conference call and webcast at 9 a.m. ET on the same day to discuss the results, with the earnings press release and financial information available on the Labcorp Investor Relations website. A replay of the webcast will be accessible until July 11, 2026.

The most recent analyst rating on (LH) stock is a Buy with a $274.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Holdings Approves Key Proposals at Annual Meeting

On May 15, 2025, Labcorp Holdings Inc. held its Annual Meeting of Shareholders where several key proposals were approved. These included the 2025 Omnibus Incentive Plan and the 2025 Employee Stock Purchase Plan, both aimed at enhancing employee incentives and engagement. Additionally, the shareholders elected members to the Board of Directors and ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the year ending December 31, 2025. These decisions reflect the company’s strategic focus on strengthening governance and aligning employee interests with corporate performance.

The most recent analyst rating on (LH) stock is a Buy with a $264.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Holdings to Webcast Annual Shareholder Meeting

Labcorp announced that its Annual Meeting of Shareholders will be webcast live on May 15, 2025, at 9:00 a.m. ET, accessible through the Labcorp Investor Relations website. The webcast will be archived for one year, allowing stakeholders to stay informed about the company’s operations and strategic direction.

Labcorp Holdings Declares Cash Dividend for Shareholders

On April 10, 2025, Labcorp Holdings Inc. announced that its Board of Directors declared a cash dividend of $0.72 per share of common stock, payable on June 11, 2025, to stockholders of record as of May 29, 2025. This decision underscores Labcorp’s commitment to returning value to its shareholders and reflects its stable financial position, potentially enhancing its attractiveness to investors.