Last Updated: 19 Sep 2024
Executive Summary
Laboratory Corporation of America Holdings (LH) is a leading clinical laboratory network with a strong financial performance. The company has a market capitalization of $19.08 billion and an analyst target price of $255.29. The stock is currently trading at $227.22, offering potential upside.
Company Overview
Labcorp operates one of the largest clinical laboratory networks in the world, with a network of 36 primary laboratories in the United States. The company provides a wide range of laboratory services, including routine testing, specialty testing, and clinical trials.
Fundamental Analysis
Revenue: Labcorp's revenue has grown steadily in recent years, reaching $12.49 billion in the trailing twelve months (TTM).
Earnings: The company's earnings per share (EPS) has also grown, reaching $5.39 in the TTM.
Profitability: Labcorp's profit margins are relatively low, with a gross profit margin of 36% and an operating margin of 9.51%.
Valuation: The stock is currently trading at a trailing price-to-earnings (PE) ratio of 42.16 and a forward PE ratio of 14.24.
Technical Analysis
Trend: The stock has been in a downtrend since reaching a 52-week high of $237.72 in March 2023.
Support and Resistance: The stock has found support at the 50-day moving average of $221.46 and resistance at the 200-day moving average of $214.83.
Momentum: The stock's momentum is currently neutral, with the relative strength index (RSI) at 48.
Short Term Outlook
In the short term, the stock is likely to continue to trade within the range of $221.46 and $237.72. A breakout above $237.72 could lead to a rally towards the analyst target price of $255.29. Conversely, a breakdown below $221.46 could lead to a decline towards the 200-day moving average.
Long Term Outlook
In the long term, Labcorp is well-positioned to benefit from the growing demand for laboratory services. The company's strong financial performance and wide range of services make it a compelling investment opportunity.
Analyst Recommendations
Analysts are generally bullish on Labcorp. Six analysts have a strong buy rating, seven have a buy rating, and five have a hold rating. The average analyst target price is $255.29.
