Labcorp Holdings Inc. (LH) is a global life sciences company providing comprehensive clinical laboratory and drug development services. Headquartered in Burlington, North Carolina, it operates diagnostics and biopharma segments and serves physicians, hospitals, pharmaceutical firms, and patients worldwide with routine, specialty, and central lab testing. The company has a market capitalization of $27.39 billion.
Better‑than‑expected results and improving profitability have supported Labcorp’s stock. Over the past 52 weeks, the stock has gained 22.3%. This year, the stock is up 34.6%. It reached a 52-week high of $339.76 on Aug. 25, and is down only marginally from that level.
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Meanwhile, the broader S&P 500 Index ($SPX) has gained 18.7% and 12.2% over the same periods, respectively, indicating the stock has outperformed the broader market. Next, we compare the stock with its own sector. The State Street Health Care Select Sector SPDR ETF (XLV) has gained 28.7% over the past 52 weeks and 13.2% YTD. As a result, the stock has underperformed its sector over the past year.
www.barchart.com Labcorp’s Q2 results were held up by strong momentum across the business and margin expansion. The better-than-expected results were supported by oncology and other high-growth specialty areas. The company’s revenue climbed 5.8% year-over-year (YOY) to $3.73 billion.
Its momentum has also been supported by its raised guidance. Labcorp has raised its full-year outlook, now expecting annual revenue growth of 5.4%-6.3%, a 30-basis-point increase at the midpoint from prior guidance, and adjusted EPS of $18.10-$18.55, up $0.30 at the midpoint.
For the current quarter, Wall Street analysts expect Labcorp’s EPS to grow 10.8% YOY to $4.63 on a diluted basis. EPS is expected to increase 11.4% annually to $18.32 in fiscal 2026, followed by a 7.3% improvement to $19.66 in fiscal 2027.
Among the 17 Wall Street analysts covering Labcorp’s stock, the consensus is a “Strong Buy.” That’s based on 13 “Strong Buy” ratings and four “Holds.” The ratings configuration has become less bullish over the past month, as the number of “Strong Buy” ratings has decreased from 14 to 13.
www.barchart.com This month, Piper Sandler analyst David Westenberg raised Labcorp’s price target from $300 to $309. However, the analyst also maintained a “Neutral” rating on the stock.
Labcorp’s mean price target of $342.94 indicates a 1.6% upside from current market prices. Moreover, the Street-high price target of $385 implies a potential upside of 14%.
On the date of publication, Anushka Dutta 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.
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