tiprankstipranks
Trending News
More News >
Labcorp Holdings (LH)
NYSE:LH
Advertisement

Labcorp Holdings (LH) AI Stock Analysis

Compare
1,087 Followers

Top Page

LH

Labcorp Holdings

(NYSE:LH)

Rating:73Outperform
Price Target:
$298.00
▲(11.32%Upside)
Labcorp Holdings demonstrates strong financial performance and positive earnings guidance, supported by strategic corporate actions. However, valuation concerns and mixed technical signals temper the overall outlook.
Positive Factors
Market Position
Shares currently trade at 15.6 times 2025 earnings, below its largest reference lab peer, indicating potential for value.
Revenue Growth
Labcorp Holdings Inc.'s revenue guidance was increased to reflect favorable foreign exchange conditions.
Strategic Expansion
The company plans to expand its position in oncology, particularly in MRD and therapy selection, indicating a strategic focus on high-growth areas.
Negative Factors
Policy Risks
Labcorp Holdings Inc. faces potential policy headwinds related to PAMA resolutions, which could result in a significant financial impact if not addressed.
Revenue Impact
Management is embedding an impact from Health Insurance Exchange disenrollment, which could affect revenue volume.

Labcorp Holdings (LH) vs. SPDR S&P 500 ETF (SPY)

Labcorp Holdings Business Overview & Revenue Model

Company DescriptionLabcorp Holdings (LH) is a leading global life sciences company that provides comprehensive clinical laboratory and end-to-end drug development services. The company operates through two main segments: Labcorp Diagnostics, which offers a wide range of laboratory testing services, and Labcorp Drug Development, which supports pharmaceutical and biotechnology companies in developing and bringing new medicines to market. Labcorp is known for its extensive network of laboratories, scientific expertise, and commitment to improving healthcare outcomes through innovative diagnostics and research solutions.
How the Company Makes MoneyLabcorp 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Breaks down sales across various business divisions, revealing which segments are contributing most to the top line and where there might be potential for expansion or risk.
Chart InsightsLabcorp's Diagnostics segment is experiencing a robust recovery, with a consistent upward trend since early 2023, bolstered by a 6% revenue increase in Q1 2025. This growth is attributed to overcoming previous weather disruptions and strategic innovations like new diagnostic tools. Meanwhile, the Drug Development segment, now part of Biopharma Laboratory Services, shows stabilization after a significant dip in mid-2023, with recent growth driven by strategic acquisitions and collaborations. Despite macroeconomic challenges, Labcorp's strategic focus on oncology and advanced diagnostics positions it well for sustained growth.
Data provided by:Main Street Data

Labcorp Holdings Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: 6.86%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
Labcorp Holdings reported strong financial performance with significant revenue growth and raised full-year guidance. However, the company faces potential challenges from PAMA cuts and regulatory uncertainties.
Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Enterprise revenue reached $3.5 billion, representing 10% growth year-over-year. Diagnostics revenue grew 9%, reaching $2.7 billion, driven equally by organic growth and acquisitions.
Biopharma Laboratory Services Performance
BLS delivered strong revenue performance, growing 11% or 8% constant currency to $785 million, with margins improving by 50 basis points.
New and Innovative Test Launches
Launched new tests in specialty areas including oncology and Alzheimer's. Key launches include Labcorp Plasma Detect and PGDx elio plasma focus Dx for cancer detection and monitoring.
Improved Financial Metrics
Adjusted earnings per share of $4.35 grew 10% year-over-year. Operating cash flow was $621 million compared to $561 million a year ago, with a $110 million increase in free cash flow.
Raised Full Year Guidance
Raised 2025 full year guidance for enterprise revenue, adjusted EPS, and free cash flow, driven by currency and underlying business strength.
Negative Updates
Potential PAMA Impact
If PAMA cuts are implemented next year, it could result in a $100 million impact on both top and bottom lines.
Challenges in Early Development
Early development business faces more challenging year-over-year comparisons, particularly in the fourth quarter.
Regulatory and Legislative Risks
Uncertainty around legislative changes, including the ACA subsidies not being extended and potential Medicaid changes, which could impact business dynamics.
Company Guidance
During the Q2 2025 earnings call, Labcorp Holdings provided robust guidance, showcasing double-digit top line growth and solid margin expansion. Enterprise revenue reached $3.5 billion, reflecting a 10% increase from the previous year, with Diagnostics revenue growing by 9% to $2.7 billion, evenly driven by organic growth and acquisitions. The Biopharma Laboratory Services (BLS) segment reported an 11% revenue increase to $785 million, with a strong quarterly book-to-bill ratio of 1.18. Adjusted earnings per share grew by 10% year-over-year to $4.35. Labcorp raised its full-year 2025 enterprise guidance, attributing the optimism to continued strength in its Diagnostic Laboratories and biopharma laboratory services businesses, along with favorable foreign exchange rates. Additionally, the company plans to leverage technology for ongoing operational efficiencies and anticipates margin improvements in the second half of the year.

Labcorp Holdings Financial Statement Overview

Summary
Labcorp Holdings exhibits strong profitability and operational efficiency with robust cash flow metrics. However, growth rates are moderate, and leverage levels are manageable.
Income Statement
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.01B12.16B14.88B16.12B13.98B
Gross Profit3.50B3.36B4.39B5.62B4.95B
EBITDA1.81B1.35B1.95B4.28B3.25B
Net Income746.00M418.00M1.28B2.38B1.56B
Balance Sheet
Total Assets18.38B16.73B20.16B20.39B20.07B
Cash, Cash Equivalents and Short-Term Investments1.52B536.80M430.00M1.47B1.32B
Total Debt7.27B5.95B6.29B6.34B6.76B
Total Liabilities10.31B8.83B10.06B10.11B10.71B
Stockholders Equity8.05B7.88B10.10B10.27B9.36B
Cash Flow
Free Cash Flow1.10B874.10M1.47B2.65B1.75B
Operating Cash Flow1.59B1.33B1.96B3.11B2.14B
Investing Cash Flow-1.37B-1.17B-1.65B-884.60M-643.20M
Financing Cash Flow779.90M-59.30M-1.32B-2.07B-517.40M

Labcorp Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price267.69
Price Trends
50DMA
253.45
Positive
100DMA
244.20
Positive
200DMA
238.97
Positive
Market Momentum
MACD
-0.59
Negative
RSI
64.69
Neutral
STOCH
60.26
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 267.69 is above the 20-day moving average (MA) of 254.48, above the 50-day MA of 253.45, and above the 200-day MA of 238.97, indicating a bullish trend. The MACD of -0.59 indicates Negative momentum. The RSI at 64.69 is Neutral, neither overbought nor oversold. The STOCH value of 60.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LH.

Labcorp Holdings Risk Analysis

Labcorp Holdings disclosed 46 risk factors in its most recent earnings report. Labcorp Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Labcorp Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$20.96B28.909.27%1.08%7.98%72.22%
72
Outperform
$33.02B28.1419.80%3.53%-10.72%
71
Outperform
$19.19B12.949.19%1.25%26.10%
71
Outperform
$19.03B20.4313.65%1.80%12.58%13.00%
67
Neutral
$13.78B9.5041.09%-1.09%-43.10%
62
Neutral
$13.56B17.268.30%-2.91%12.92%
50
Neutral
AU$2.62B3.32-57.47%2.40%36.73%13.67%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LH
Labcorp Holdings
267.69
59.28
28.44%
BIIB
Biogen
132.59
-78.58
-37.21%
ICLR
Icon
195.01
-128.45
-39.71%
DGX
Quest Diagnostics
171.90
29.08
20.36%
THC
Tenet Healthcare
148.38
-3.25
-2.14%
IQV
IQVIA Holdings
200.82
-38.85
-16.21%

Labcorp Holdings Corporate Events

Dividends
Labcorp Declares Quarterly Dividend, Enhancing Shareholder Value
Positive
Jul 10, 2025

On July 10, 2025, Labcorp Holdings Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.72 per share, payable on September 11, 2025, to stockholders recorded by August 28, 2025. This decision reflects Labcorp’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors, reinforcing its position in the laboratory services industry.

The most recent analyst rating on (LH) stock is a Buy with a $260.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Labcorp Holdings Secures $1 Billion Credit Facility
Positive
Jun 27, 2025

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.

Financial Disclosures
Labcorp Holdings to Announce Q2 2025 Financial Results
Neutral
Jun 26, 2025

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.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Labcorp Holdings Approves Key Proposals at Annual Meeting
Positive
May 20, 2025

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.

Shareholder Meetings
Labcorp Holdings to Webcast Annual Shareholder Meeting
Neutral
May 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025