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Labcorp Holdings Inc. (LH), headquartered in Burlington, North Carolina, is a leading global life sciences company specializing in diagnostic testing and drug development services. With a market cap of $18.43 billion, Labcorp provides comprehensive healthcare solutions, including laboratory testing, clinical trials, and research support, serving clients in various industries worldwide.
Companies valued at $10 billion or more are classified as "large-cap" stocks. Labcorp Holdings fits right into this category, showcasing its substantial scale, stability, and leadership in the healthcare and diagnostics sector.
LH shares are trading 7.6% below their 52-week high of $238.46, which they hit on Aug. 2. However, the stock has gained 7.9% over the past three months, outperforming the SPDR S&P Health Care Services ETF’s (XHS) 5.6% gain over the same time frame.
In the longer term, LH is down 3.6% on a YTD basis. However, the shares have gained 6.8% over the past 52 weeks. The XHS has gained 7.3% in 2024 and 13% over the past year.
LH has been trading above its 200-day moving average since late July, which confirms its bullish trend. However, it has been trading below its 50-day moving since early late September.
On Aug. 1, LH gained over 8.3% following its Q2 earnings report. Its adjusted EPS of $3.94 beat Wall Street expectations of $3.78. The company’s revenue was $3.22 billion, which surpassed the Wall Street forecasts of $3.20 billion. LH expects full-year adjusted EPS to be between $14.30 to $14.90 per share.
Highlighting the contrast in performance, rival Quest Diagnostics Incorporated (DGX) has outperformed both LH and XHS, with a 10.8% gain on a YTD basis.
Given LH's recent outperformance compared to the XHS, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 15 analysts in coverage. The mean price target is $255.80, suggesting a premium of 16% to its current levels.
On the date of publication, Rashmi Kumari 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.
