Labcorp Holdings (LH) AI Stock Analysis

• Market Cap: $20.96B
• Dividend Yield: 1.08%
• Average Volume (3M): 730.11K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.40
• Revenue Growth: 7.98%
• EPS Growth: 72.22%
• Country: US
• Employees: 60,900
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Equipment & Services
• EPS (TTM): 4.35
• Shares Outstanding: 83,668,570
• 10 Day Avg. Volume: 922,644
• 30 Day Avg. Volume: 730,112
• PEG Ratio: -16.88
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.49
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 10.56
• Enterprise Value/Ebitda: 4.20
• 1Y Price Target: $293.08
• Price Target Upside: 9.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 73 Outperform
• 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 Business Overview & Revenue Model

Company Description

Labcorp 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 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 exhibits strong profitability and operational efficiency with robust cash flow metrics. However, growth rates are moderate, and leverage levels are manageable.

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

Labcorp Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 267.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LH	73 Outperform	$20.96B	28.90	9.27%	1.08%	7.98%	72.22%
IQV	72 Outperform	$33.02B	28.14	19.80%	―	3.53%	-10.72%
BIIB	71 Outperform	$19.19B	12.94	9.19%	―	1.25%	26.10%
DGX	71 Outperform	$19.03B	20.43	13.65%	1.80%	12.58%	13.00%
THC	67 Neutral	$13.78B	9.50	41.09%	―	-1.09%	-43.10%
ICLR	62 Neutral	$13.56B	17.26	8.30%	―	-2.91%	12.92%
Sector *	50 Neutral	AU$2.62B	3.32	-57.47%	2.40%	36.73%	13.67%

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.

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.