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Here's Why You Should Invest in LabCorp (LH) Stock Right Now
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Laboratory Corporation of America Holdings (LH - Free Report) ,or LabCorp, has gained 19.8% over the last year, against the industry's gain of 9.9%. The stock has a market cap of $17.43 billion.The company’s five-year historical growth rate is also favorable at 7.4% compared with the S&P 500 index’s 2.8%.
Considering the stable performance of the stock, we expect LabCorp to scale higher in the coming quarters. Also, the company’s long-term expected earnings growth rate of 10.3% looks promising. The company delivered a positive earnings surprise of 2.9% in the last four quarters.
With solid growth prospects, this Zacks Rank #2 (Buy) stock is an attractive pick at present. Let’s find out whether the recent positive trend is a sustainable one.
The company has an impressive Growth Style Score of B. Our Growth Style Score highlights all the vital metrics of a company’s financials to obtain a clear picture of the quality and sustainability of growth. Our research shows that stocks with Style Scores of A or B when combined with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) offer the best investment opportunities. The stock has a VGM score of A.
Northward Revision: The current estimate revision trend is favorable. For the current year, 12 estimates moved north compared with no movement in the opposite direction over the last two months. As a result, the Zacks Consensus Estimate for the full year rose 10.1% to $11.35 per share. The company’s projected annualized earnings growth rate is 18.2%.
Strong Earnings: The market is upbeat about the company’s fourth-quarter 2017 results. The year-over-year increase in adjusted earnings and revenues is encouraging. LabCorp Diagnostics business was solid on the back of increasing acquisitions, organic volume expansion and a favorable foreign exchange scenario.
After several quarters of dull performance, Covance Drug Development has been delivering sturdy growth over the past couple of terms. This uptrend can be attributed to the Chiltern takeover, robust organic growth and a positive foreign currency translation. Also, the guidance for 2018 looks promising.
We believe that with the integration of newer acquisitions, LabCorp is perfectly positioned to drive long-term profitable growth through a combination of world-class diagnostics, drug development expertise and knowledge services.
Solid Guidance: For full-year 2018, revenue growth is estimated in the band of 9.5-11.5%, which includes a likely improvement of 60 basis points (bps) from a foreign currency translation. The Zacks Consensus Estimate for current-year revenues is pegged at $11.06 billion.
Adjusted earnings per share (EPS) guidance for 2018 is projected in the range of $11.30-$11.70. The consensus mark of $10.67 for the metric falls below the guidance. Free cash flow has been projected within $1.1-$1.2 billion, while growth is expected in the band of 0-9.1% from a year ago.
Other Key Picks
A few other top-ranked stocks in the broader medical sector are PerkinElmer , Bio-Rad Laboratories (BIO - Free Report) and Becton, Dickinson and Company (BDX - Free Report) .
PerkinElmer has a long-term expected earnings growth rate of 12.3%. The stock carries a Zacks Rank #2.
Becton, Dickinson is a Zacks #2 Ranked player. The company has a long-term expected earnings growth rate of 13.3%.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Here's Why You Should Invest in LabCorp (LH) Stock Right Now
Laboratory Corporation of America Holdings (LH - Free Report) ,or LabCorp, has gained 19.8% over the last year, against the industry's gain of 9.9%. The stock has a market cap of $17.43 billion.The company’s five-year historical growth rate is also favorable at 7.4% compared with the S&P 500 index’s 2.8%.
Considering the stable performance of the stock, we expect LabCorp to scale higher in the coming quarters. Also, the company’s long-term expected earnings growth rate of 10.3% looks promising. The company delivered a positive earnings surprise of 2.9% in the last four quarters.
With solid growth prospects, this Zacks Rank #2 (Buy) stock is an attractive pick at present. Let’s find out whether the recent positive trend is a sustainable one.
The company has an impressive Growth Style Score of B. Our Growth Style Score highlights all the vital metrics of a company’s financials to obtain a clear picture of the quality and sustainability of growth. Our research shows that stocks with Style Scores of A or B when combined with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) offer the best investment opportunities. The stock has a VGM score of A.
Northward Revision: The current estimate revision trend is favorable. For the current year, 12 estimates moved north compared with no movement in the opposite direction over the last two months. As a result, the Zacks Consensus Estimate for the full year rose 10.1% to $11.35 per share. The company’s projected annualized earnings growth rate is 18.2%.
Strong Earnings: The market is upbeat about the company’s fourth-quarter 2017 results. The year-over-year increase in adjusted earnings and revenues is encouraging. LabCorp Diagnostics business was solid on the back of increasing acquisitions, organic volume expansion and a favorable foreign exchange scenario.
After several quarters of dull performance, Covance Drug Development has been delivering sturdy growth over the past couple of terms. This uptrend can be attributed to the Chiltern takeover, robust organic growth and a positive foreign currency translation. Also, the guidance for 2018 looks promising.
We believe that with the integration of newer acquisitions, LabCorp is perfectly positioned to drive long-term profitable growth through a combination of world-class diagnostics, drug development expertise and knowledge services.
Solid Guidance: For full-year 2018, revenue growth is estimated in the band of 9.5-11.5%, which includes a likely improvement of 60 basis points (bps) from a foreign currency translation. The Zacks Consensus Estimate for current-year revenues is pegged at $11.06 billion.
Adjusted earnings per share (EPS) guidance for 2018 is projected in the range of $11.30-$11.70. The consensus mark of $10.67 for the metric falls below the guidance. Free cash flow has been projected within $1.1-$1.2 billion, while growth is expected in the band of 0-9.1% from a year ago.
Other Key Picks
A few other top-ranked stocks in the broader medical sector are PerkinElmer , Bio-Rad Laboratories (BIO - Free Report) and Becton, Dickinson and Company (BDX - Free Report) .
Bio-Rad Laboratories sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The company has a long-term expected earnings growth rate of 25%.
PerkinElmer has a long-term expected earnings growth rate of 12.3%. The stock carries a Zacks Rank #2.
Becton, Dickinson is a Zacks #2 Ranked player. The company has a long-term expected earnings growth rate of 13.3%.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>