In the latest trading session, LabCorp (LH - Free Report) closed at $174.72, marking a -1.24% move from the previous day. This change was narrower than the S&P 500's 3.51% loss on the day. Meanwhile, the Dow lost 2.78%, and the Nasdaq, a tech-heavy index, lost 4.96%.
Prior to today's trading, shares of the medical laboratory operator had lost 8.58% over the past month. This has lagged the Medical sector's gain of 2.77% and the S&P 500's gain of 9.58% in that time.
Investors will be hoping for strength from LH as it approaches its next earnings release. On that day, LH is projected to report earnings of $4.73 per share, which would represent year-over-year growth of 63.1%. Our most recent consensus estimate is calling for quarterly revenue of $3.60 billion, up 22.77% from the year-ago period.
LH's full-year Zacks Consensus Estimates are calling for earnings of $13.84 per share and revenue of $12.69 billion. These results would represent year-over-year changes of +22.26% and +9.87%, respectively.
Investors should also note any recent changes to analyst estimates for LH. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.45% higher. LH currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, LH is holding a Forward P/E ratio of 12.78. This valuation marks a discount compared to its industry's average Forward P/E of 37.45.
It is also worth noting that LH currently has a PEG ratio of 1.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LH's industry had an average PEG ratio of 3.23 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.