Labcorp Holdings (LH) AI Stock Analysis

• Market Cap: $21.14B
• Dividend Yield: 1.13%
• Average Volume (3M): 824.15K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.38
• 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: 684,383
• 30 Day Avg. Volume: 824,149
• 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: 1.42
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 7.66
• Enterprise Value/Ebitda: 14.90
• 1Y Price Target: $306.00
• Price Target Upside: 20.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 16.33
• Revenue Forecast (FY): $14.00B

• Rating: 71 Outperform
• Price Target: $287.00 ▲(13.37% Upside)

Labcorp Holdings demonstrates strong financial performance and strategic growth initiatives, particularly in the Diagnostics and Central Laboratories segments. While technical indicators suggest a bearish trend, the company's focus on high-growth areas and technological innovation provides a positive outlook. Valuation metrics indicate the stock is fairly valued, with potential for growth if earnings continue to improve. Recent corporate events further support the company's strategic direction.

Positive Factors

Revenue Growth

Labcorp's consistent revenue growth, particularly in the Diagnostics segment, indicates strong market demand and effective business strategies, supporting long-term expansion.

Innovation in Testing Capabilities

Innovation in testing capabilities enhances Labcorp's competitive edge, allowing it to offer advanced solutions and maintain leadership in the diagnostics industry.

Strategic Acquisitions

Strategic acquisitions expand Labcorp's service offerings and geographic reach, strengthening its market position and supporting sustainable growth.

Negative Factors

Impact of PAMA Legislation

The anticipated financial impact from PAMA legislation could pressure Labcorp's margins and profitability, challenging its financial performance in the coming years.

Early Development Segment Challenges

Challenges in the Early Development segment, including delayed study starts, may hinder Labcorp's growth prospects and necessitate strategic adjustments.

Rising Debt Levels

Elevated debt levels could limit Labcorp's financial flexibility, affecting its ability to invest in growth initiatives and manage economic downturns effectively.

Labcorp Holdings Business Overview & Revenue Model

Company Description

Labcorp Holdings (LH) is a global leader in diagnostics and drug development services, providing comprehensive laboratory testing and services to healthcare providers, pharmaceutical companies, and patients. The company operates through two main segments: Labcorp Diagnostics, which offers a wide range of clinical laboratory tests, including routine and specialty testing, and Labcorp Drug Development, which provides drug development and clinical trial services to the biopharmaceutical industry. Labcorp is dedicated to advancing health and improving patient outcomes through innovative testing solutions and a commitment to quality.

How the Company Makes Money

Labcorp generates revenue primarily through its two main segments: Labcorp Diagnostics and Labcorp Drug Development. The Diagnostics segment earns money by providing a broad array of laboratory testing services, including blood tests, genetic testing, and other specialized tests to hospitals, physicians, and patients. This segment benefits from high volume, as it serves a vast network of healthcare providers and has a significant presence in the outpatient testing market. The Drug Development segment earns revenue by offering clinical trial services, laboratory testing, and related services to pharmaceutical and biotechnology companies, aiding in the development of new drugs. Key revenue streams include service fees for tests and trials, contracts with healthcare providers, and partnerships with pharmaceutical firms for drug development projects. Additionally, Labcorp's extensive laboratory network and technological advancements help reduce operational costs and improve efficiency, further contributing to its earnings.

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: Negative
• Last Price: 253.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LH, the sentiment is Negative. The current price of 253.15 is below the 20-day moving average (MA) of 261.77, below the 50-day MA of 264.66, and below the 200-day MA of 256.34, indicating a bearish trend. The MACD of -2.69 indicates Positive momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 13.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$19.62B	20.54	13.69%	1.80%	13.74%	14.87%
STE	77 Outperform	$24.96B	36.20	10.14%	0.94%	5.15%	60.30%
BIIB	74 Outperform	$25.63B	15.94	9.31%	―	5.00%	-1.03%
IQV	73 Outperform	$38.21B	30.91	19.55%	―	3.85%	-4.74%
LH	71 Outperform	$21.14B	24.86	10.14%	1.13%	8.28%	97.24%
PODD	70 Outperform	$20.51B	82.84	19.68%	―	27.12%	-41.72%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Labcorp Holdings Corporate Events

Labcorp Holdings Announces Executive Retirement

On December 9, 2025, Labcorp Holdings announced that Mark Schroeder, the Executive Vice President and President of Diagnostics Laboratories and Chief Operations Officer, will retire on April 1, 2026. This announcement marks a significant leadership change for the company, potentially impacting its operational strategies and stakeholder relations.

Labcorp Announces Board Member Retirement

On December 10, 2025, Labcorp Holdings announced the retirement of Dr. D. Gary Gilliland from its Board of Directors, effective December 31, 2025. Dr. Gilliland, who has been a director since 2014, played a crucial role in the company’s growth and innovation in oncology and gene therapy, significantly contributing to Labcorp’s position as a trusted leader in laboratory services.

Labcorp Holdings Appoints Victor Bulto to Board

Labcorp Holdings announced the appointment of Victor Bulto, President of Novartis U.S., to its Board of Directors, effective December 1, 2025. Bulto brings extensive experience in healthcare leadership, having managed Novartis’ $20+ billion U.S. operations across key therapeutic areas. His expertise in transformation and innovation is expected to support Labcorp’s strategic priorities in advancing healthcare innovation and delivering value to customers and shareholders.

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.

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.