Labcorp Holdings (LH) AI Stock Analysis

• Market Cap: $22.05B
• Dividend Yield: 1.08%
• Average Volume (3M): 884.88K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.39
• Revenue Growth: 8.28%
• EPS Growth: 97.24%
• Country: US
• Employees: 60,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Equipment & Services
• EPS (TTM): 4.18
• Shares Outstanding: 82,900,000
• 10 Day Avg. Volume: 1,311,440
• 30 Day Avg. Volume: 884,882
• PEG Ratio: 0.30
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 17.56
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 7.66
• Enterprise Value/Ebitda: 14.90
• 1Y Price Target: $307.00
• Price Target Upside: 15.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 16.33
• Revenue Forecast (FY): $14.00B

• Rating: 68 Neutral
• Price Target: $283.00 ▲(6.39% Upside)

Labcorp Holdings demonstrates strong financial performance and promising earnings call highlights, driving a positive outlook. However, technical indicators suggest bearish momentum, and the valuation appears high, which tempers the overall score. The company's strategic focus on growth areas and technology investments is promising, but attention to debt reduction and market conditions is necessary.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, positioning Labcorp for sustained expansion in its industry.

Innovation in Testing Capabilities

Innovation in testing enhances Labcorp's competitive edge, attracting more clients and expanding its service offerings, which supports long-term growth.

Investment in Technology and AI

Investments in AI and technology improve operational efficiency and customer experience, strengthening Labcorp's market position and future growth potential.

Negative Factors

Debt Levels

Elevated debt levels can limit financial flexibility and increase risk, potentially impacting Labcorp's ability to invest in growth opportunities.

Early Development Segment Challenges

Challenges in the Early Development segment may hinder growth and require strategic adjustments, impacting Labcorp's overall revenue trajectory.

Impact of PAMA Legislation

Regulatory impacts from PAMA could reduce profitability and necessitate strategic shifts, affecting Labcorp's financial performance in the coming years.

Labcorp Holdings Business Overview & Revenue Model

Company Description

Labcorp Holdings (LH) is a global leader in laboratory services, specializing in diagnostic testing, drug development, and related services. The company operates in two primary segments: Labcorp Diagnostics, which provides comprehensive laboratory testing services across various medical disciplines, and Labcorp Drug Development, which offers services to pharmaceutical and biotechnology companies to aid in the drug development process. With a strong focus on innovation and technology, Labcorp aims to improve patient health and advance medical science through its extensive range of tests and clinical development services.

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 solid financial health with consistent revenue growth and profitability. While leverage is slightly elevated, the company maintains a strong cash flow position, enabling it to manage debt effectively. Overall, Labcorp is well-positioned for continued growth in the medical equipment and services industry, though attention to further debt reduction could enhance financial stability.

Income Statement

Labcorp Holdings shows a steady revenue growth rate of 2.09% in the TTM, indicating a positive trajectory after previous fluctuations. The gross profit margin of 28.45% and net profit margin of 6.21% reflect stable profitability, though slightly below industry leaders. EBIT and EBITDA margins are healthy at 9.69% and 14.62%, respectively, suggesting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio of 0.75 in the TTM indicates a moderate level of leverage, which is manageable but slightly higher than optimal. Return on equity stands at 10.20%, showing decent profitability from shareholders' investments. The equity ratio of 47.64% suggests a balanced capital structure, though there is room for improvement in reducing debt levels.

Cash Flow

Labcorp Holdings demonstrates strong cash flow management with a free cash flow growth rate of 9.43% in the TTM. The operating cash flow to net income ratio of 0.69 and free cash flow to net income ratio of 0.77 indicate robust cash generation relative to earnings, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.77B	13.01B	12.16B	11.86B	13.14B	13.98B
Gross Profit	3.92B	3.62B	3.36B	3.71B	4.99B	4.95B
EBITDA	2.01B	1.81B	1.35B	1.95B	3.68B	3.25B
Net Income	855.20M	746.00M	418.00M	1.28B	2.38B	1.56B
Balance Sheet
Total Assets	18.26B	18.38B	16.73B	20.16B	20.39B	20.07B
Cash, Cash Equivalents and Short-Term Investments	598.10M	1.52B	536.80M	320.60M	1.47B	1.32B
Total Debt	6.53B	7.27B	5.95B	6.25B	6.34B	6.76B
Total Liabilities	9.55B	10.31B	8.83B	10.04B	10.09B	10.61B
Stockholders Equity	8.70B	8.05B	7.88B	10.10B	10.27B	9.44B
Cash Flow
Free Cash Flow	1.38B	1.10B	874.10M	1.47B	2.65B	1.75B
Operating Cash Flow	1.80B	1.59B	1.33B	1.96B	3.11B	2.14B
Investing Cash Flow	-1.01B	-1.37B	-1.17B	-1.65B	-884.60M	-643.20M
Financing Cash Flow	-1.71B	779.90M	-59.30M	-1.32B	-2.07B	-517.40M

Labcorp Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 266.00
• 50DMA: Negative
• 100DMA: Negative
• 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 266 is below the 20-day moving average (MA) of 266.03, below the 50-day MA of 273.52, and above the 200-day MA of 255.07, indicating a neutral trend. The MACD of -3.94 indicates Negative momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 86.25 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
STE	77 Outperform	$26.30B	38.15	10.14%	0.99%	5.15%	60.30%
PODD	77 Outperform	$23.70B	97.73	19.68%	―	27.12%	-41.72%
IQV	77 Outperform	$37.62B	30.32	19.55%	―	3.85%	-4.74%
BIIB	74 Outperform	$23.69B	14.73	9.31%	―	5.00%	-1.03%
DGX	70 Outperform	$20.79B	21.93	13.69%	1.68%	13.74%	14.87%
LH	68 Neutral	$22.05B	26.12	10.14%	1.08%	8.28%	97.24%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Labcorp Holdings Corporate Events

Labcorp Reports Strong Q3 2025 Earnings Growth

Laboratory Corporation of America (Labcorp) is a global leader in innovative and comprehensive laboratory services, providing diagnostic and drug development capabilities to healthcare providers, pharmaceutical companies, and patients worldwide. The company is known for its extensive testing services and plays a significant role in advancing healthcare through its scientific and technological expertise.

Labcorp’s Earnings Call: Growth and Innovation Shine

Labcorp’s recent earnings call painted a picture of robust growth and strategic advancements, with a strong emphasis on revenue increases and innovation in testing capabilities. The sentiment was generally positive, highlighting the company’s success in Diagnostics and Central Laboratories, although tempered by some challenges such as lower-than-expected Early Development revenue and potential impacts from PAMA legislation.

Labcorp’s Role in Pioneering Non-Invasive Preeclampsia Screening: A Market Perspective

Study Overview: The study titled ‘Collection of Pregnancy Outcome Data and Whole Blood Samples From Women Undergoing Non-Invasive Screening for Early, Preterm, and Term Preeclampsia’ aims to evaluate the effectiveness of non-invasive screening methods for preeclampsia in pregnant women between 11-14 weeks of gestation. This research is significant as it seeks to improve early detection and management of preeclampsia, a condition that can lead to serious complications for both mother and child.

Labcorp Holdings Declares Cash Dividend Announcement

On October 8, 2025, Labcorp Holdings Inc. announced that its Board of Directors declared a cash dividend of $0.72 per share of common stock, payable on December 11, 2025, to stockholders of record as of November 26, 2025. This announcement reflects Labcorp’s commitment to returning value to its shareholders and may enhance its market positioning by attracting and retaining investors.

The most recent analyst rating on (LH) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Holdings to Release Q3 2025 Financial Results

Labcorp Holdings Inc. announced on September 25, 2025, that it will release its third-quarter financial results for 2025 on October 28, 2025, before the market opens. The company will host a conference call and webcast to discuss these results, with the webcast available on the Labcorp Investor Relations website. A replay of the webcast will be accessible until October 15, 2026.

The most recent analyst rating on (LH) stock is a Buy with a $311.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Holdings to Join Morgan Stanley Healthcare Conference

On August 27, 2025, Labcorp Holdings announced that its executive management team will participate in a fireside chat at the Morgan Stanley 23rd Annual Global Healthcare Conference on September 9, 2025. The event will be available via a live audio webcast on the company’s Investor Relations website, potentially enhancing Labcorp’s visibility and engagement with stakeholders in the healthcare industry.

The most recent analyst rating on (LH) stock is a Buy with a $311.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.