Labcorp Holdings (LH) AI Stock Analysis

• Market Cap: $22.38B
• Dividend Yield: 1.06%
• Average Volume (3M): 740.51K
• Price to Earnings (P/E): 29.7
• Beta (1Y): 0.43
• Revenue Growth: 7.98%
• EPS Growth: 72.22%
• Country: US
• Employees: 60,900
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Equipment & Services
• EPS (TTM): 4.35
• Shares Outstanding: 83,100,000
• 10 Day Avg. Volume: 554,884
• 30 Day Avg. Volume: 740,509
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 7.36
• Enterprise Value/Ebitda: 20.50
• 1Y Price Target: $296.50
• Price Target Upside: 9.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $298.00 ▲(9.86% Upside)

Labcorp Holdings achieves a solid overall score, driven by robust earnings performance and positive technical indicators. While the high P/E ratio suggests potential overvaluation, strategic corporate actions and positive earnings guidance underscore future growth potential. However, regulatory risks and margin pressures need to be monitored.

Positive Factors

Earnings Guidance

Labcorp Holdings Inc. raised its 2025 EPS guidance, driven partly by strong operational expectations and consistent high utilization levels.

Foreign Exchange Impact

Foreign exchange tailwinds have positively impacted Labcorp's raised guidance, particularly through exposure to the Swiss franc and British pound.

Growth Strategy

Labcorp expects promising organic and inorganic growth in diagnostics, supported by new acquisitions and partnerships.

Negative Factors

Policy Headwinds

Labcorp Holdings Inc. faces potential policy headwinds related to PAMA resolutions, which could result in a significant financial impact if not addressed.

Revenue Volume Impact

Management is embedding an impact from Health Insurance Exchange disenrollment, which could affect revenue volume.

Labcorp Holdings Business Overview & Revenue Model

Company Description

Labcorp Holdings, Inc. provides laboratory services to help doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.

How the Company Makes Money

Labcorp generates revenue primarily through its laboratory services and drug development offerings. The company's revenue model is driven by a fee-for-service structure, where clients pay for individual tests and services provided. Key revenue streams include diagnostic testing services for both patients and healthcare providers, which encompass routine blood tests, genetic testing, and specialized assays. Additionally, Labcorp's Drug Development segment contributes significantly to its earnings by providing clinical trial services, laboratory services, and consulting to pharmaceutical companies. Strategic partnerships with healthcare organizations, pharmaceutical firms, and payers further enhance Labcorp's revenue potential, as they often lead to long-term contracts and increased testing volumes. The company also benefits from a diverse customer base, including hospitals, physicians, and government agencies, which helps stabilize its income and mitigate risks associated with market fluctuations.

Labcorp Holdings Financial Statement Overview

Summary

Labcorp Holdings exhibits a solid financial foundation with noteworthy cash flow performance and a stable capital structure. However, profitability has faced challenges, with margins under pressure and fluctuating revenue trends. Despite these challenges, the firm maintains a reasonable debt level and continues to generate healthy cash flows, positioning it well to navigate potential market uncertainties.

Income Statement

Labcorp Holdings shows a mixed performance in its income statement. The Gross Profit Margin for TTM (Trailing-Twelve-Months) is approximately 28.14%, indicating decent profitability. Net Profit Margin for TTM is around 5.66%, reflecting a slight improvement from the previous year but still lower compared to earlier periods. Revenue growth has been inconsistent, with a decline observed from 2021 to 2023, followed by a recovery in TTM. The EBIT Margin has seen a consistent decline over the years, reaching 8.83% in TTM, which could be a concern. EBITDA Margin for TTM is 10.10%, showcasing a moderate level of operating profitability.

Balance Sheet

The Balance Sheet of Labcorp Holdings presents a stable yet cautious financial position. The Debt-to-Equity Ratio in TTM is 0.77, indicating moderate leverage. Return on Equity (ROE) has decreased over the years, reaching 9.01% in TTM, signaling a reduced return on shareholders' equity. The Equity Ratio stands at 46.91% in TTM, suggesting a balanced capital structure with a significant portion of assets financed by equity. The consistent reduction in Stockholders' Equity from 2021 to TTM could warrant attention.

Cash Flow

Labcorp Holdings demonstrates strong cash flow management. The Free Cash Flow Growth Rate for TTM is 15.13%, indicating positive cash flow growth. Operating Cash Flow to Net Income Ratio is 2.22, reflecting robust cash flow generation relative to net income. The Free Cash Flow to Net Income Ratio is 1.65, showcasing efficient conversion of earnings into cash. The company has maintained a positive trend in operating and free cash flows despite fluctuations in net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.48B	13.01B	12.16B	14.88B	16.12B	13.98B
Gross Profit	3.79B	3.50B	3.36B	4.39B	5.62B	4.95B
EBITDA	1.36B	1.81B	1.35B	1.95B	4.28B	3.25B
Net Income	763.40M	746.00M	418.00M	1.28B	2.38B	1.56B
Balance Sheet
Total Assets	18.06B	18.38B	16.73B	20.16B	20.39B	20.07B
Cash, Cash Equivalents and Short-Term Investments	647.30M	1.52B	536.80M	320.60M	1.47B	1.32B
Total Debt	6.55B	7.27B	5.95B	6.25B	6.34B	6.76B
Total Liabilities	9.57B	10.31B	8.83B	10.04B	10.09B	10.61B
Stockholders Equity	8.47B	8.05B	7.88B	10.10B	10.27B	9.44B
Cash Flow
Free Cash Flow	1.26B	1.10B	874.10M	1.47B	2.65B	1.75B
Operating Cash Flow	1.69B	1.59B	1.33B	1.96B	3.11B	2.14B
Investing Cash Flow	-1.22B	-1.37B	-1.17B	-1.65B	-884.60M	-643.20M
Financing Cash Flow	-105.50M	779.90M	-59.30M	-1.32B	-2.07B	-517.40M

Labcorp Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 271.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 271.25 is above the 20-day moving average (MA) of 261.29, above the 50-day MA of 258.91, and above the 200-day MA of 242.69, indicating a bullish trend. The MACD of 3.90 indicates Negative momentum. The RSI at 63.65 is Neutral, neither overbought nor oversold. The STOCH value of 92.10 is Negative, 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
ICLR	77 Outperform	$13.15B	18.12	8.30%	―	-2.91%	12.92%
LH	75 Outperform	$22.38B	29.70	9.27%	1.06%	7.98%	72.22%
BIIB	75 Outperform	$18.90B	12.93	9.13%	―	3.48%	31.44%
IQV	72 Outperform	$31.60B	27.55	19.80%	―	3.53%	-10.72%
THC	70 Outperform	$15.06B	11.00	41.09%	―	-1.09%	-43.10%
DGX	70 Neutral	$19.95B	21.34	13.65%	1.74%	12.58%	13.00%
Sector *	51 Neutral	$7.44B	-0.20	-46.00%	2.27%	22.80%	-2.27%

Labcorp Holdings Corporate Events

Labcorp Declares Quarterly Dividend, Enhancing Shareholder Value

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.

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.