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Burlington, North Carolina-based Labcorp Holdings Inc. (LH) is a provider of laboratory services. It offers various tests, such as blood chemistry analyses, urinalyses, thyroid, PAP, substance abuse, and many more. With a market cap of $19.4 billion, Labcorp Holdings operates through Diagnostics Laboratories and Biopharma Laboratory Services segments.
Shares of the medical laboratory operator have underperformed the broader market over the past year. Over the past 52 weeks, LH stock has gained 8.5%, lagging behind the S&P 500 Index’s ($SPX) 27.5% returns. In 2024, LH is up 1.3% compared to SPX’s 17.8% gains on a YTD basis.
Zooming in further, LH has also lagged behind the S&P 500 Healthcare Sector SPDR’s (XLV) 16.5% returns over the past 52 weeks and 13.9% gains on a YTD basis.
Shares of Labcorp Holdings surged 8.3% following the release of its Q2 earnings on Aug. 1. The company reported revenue of $3.2 billion and adjusted EPS of $3.94, exceeding Wall Street’s expectations. Furthermore, the company raised its revenue growth guidance to 6.4% to 7.5% range, making investors elated.
For the current fiscal year, ending in December, analysts expect Labcorp Holdings to report an EPS growth of 8.2% year over year to $14.67. Moreover, the company’s earnings surprise history is robust. It beat the consensus estimates in each of the last four quarters.
Among the 15 analysts covering the LH stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This configuration has been consistent over the past months.
On Aug. 2, UBS Group (UBS) analyst Kevin Caliendo maintained a “Strong Buy” rating on Labcorp Holdings, setting a price target of $270.
LH’s mean price target of $253 represents a premium of only 9.9% from current price levels. The Street-high target of $277 indicates a potential upside of 20.3%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
