Labcorp (LH Quick QuoteLH - Free Report) recently announced the expansion of its precision oncology portfolio, which includes new test offerings for solid tumor and hematologic malignancies and enhanced biopharma solutions designed to accelerate clinical trials and companion diagnostic development.

Predicting LH Stock Movement Following the News

Following the announcement, Labcorp shares edged up by 0.9%, finishing at $248.97 last Friday. Currently, the company is focusing more on key specialty testing areas such as oncology, which represent major growth opportunities and are expected to grow up to 3x faster than other therapeutic areas. Henceforth, we expect that Labcorp's latest developments in the oncology space will help sustain a positive market sentiment toward LH stock.

Labcorp has a market capitalization of $20.84 billion. Going by the Zacks Consensus Estimate, the company’s earnings are expected to grow by 10.2% on a 6.9% improvement in revenues in 2025. In the trailing four quarters, it delivered an average earnings beat of 2.3%.

LH’s Progress in Solid Tumor and Hematologic Malignancies

Labcorp introduced new NGS panels for myeloid, lymphoid and pan-heme indications. These new panels offer broader genomic coverage and more clinically actionable insights for patients with hematologic malignancies, helping oncologists and pathologists navigate complex diagnoses and guide treatment decisions with greater speed and clarity. Meanwhile, the company announced the launch of the Rapid AML Panel to enhance its comprehensive test menu for acute myeloid leukemia.

Additionally, Labcorp's pan-solid tumor profiling test, OmniSeq INSIGHT, will include homologous recombination deficiency (HRD) testing. The addition of HRD testing will help identify patients with ovarian cancer who are most likely to benefit from targeted therapies. The company also included the categorization of HER2-low and HER2-ultralow subtypes in the HER2 IHC test for patients with breast cancer and the VENTANA MET (SP44) RxDx Assay for patients with non-squamous non-small cell lung cancer.

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LH’s Biopharma Solutions for Companion Diagnostic Development

Labcorp will now offer Labcorp Plasma Focus, a solid tumor liquid biopsy test, through its Geneva, Switzerland, and Shanghai, China, sites. The company also launched an enhanced digital pathology platform across its global central labs. Utilizing Leica Biosystems Aperio GT450 scanners and Proscia's Concentriq LS image management system, the platform offers scalable, file-agnostic infrastructure to support scanning, archival and companion diagnostic development. It enables real-time global peer review and delivers more accurate, actionable insights with the ability to integrate high-volume image analysis and leverage AI-driven interpretation.

Industry Prospects Favor Labcorp

Per a report by Precedence Research, the global precision oncology market size is predicted to surpass $312.33 billion by 2034, expanding at a compound annual growth rate of 10% between 2024 and 2034. The rising prevalence of cancer across the globe is anticipated to augment the growth of the precision oncology market. Additionally, the development of advanced technologies like next-generation sequencing technology is also likely to fuel the growth of the market in the near future.

Another Development at Labcorp

The previous month, Labcorp agreed to acquire select assets of Incyte Diagnostics’ clinical testing business. The deal includes several same-day testing labs and key anatomic pathology facilities in Spokane, Tukwila, and Richland, Washington, as well as Missoula, Montana.

LH Stock Price Performance

In the past year, Labcorp shares have rallied 27.7% against the industry’s 2.3% decline.

LH’s Zacks Rank and Top MedTech Stocks

Labcorp currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space include Phibro Animal Health (PAHC Quick QuotePAHC - Free Report) , Hims & Hers Health (HIMS Quick QuoteHIMS - Free Report) and Prestige Consumer Healthcare (PBH Quick QuotePBH - Free Report) . While Phibro Animal Health sports a Zacks Rank #1 (Strong Buy) at present, Hims & Hers Health and Prestige Consumer Health carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Estimates for Phibro Animal Health’s fiscal 2025 earnings per share have jumped 3.6% to $2.01 in the past 30 days. Shares of the company have rallied 37.9% in the past year compared with the industry’s 10.1% growth. Its earnings yield of 8.7% compares comfortably with the industry’s 0.5%. PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.6%.

Hims & Hers Health’s shares have surged 172.5% in the past year. Estimates for the company’s 2025 earnings per share have jumped 12.5% to 72 cents in the past 30 days. HIMS’ earnings beat estimates in two of the trailing four quarters, matched in one and missed in the other, the average surprise being 19.6%. In the last reported quarter, it posted an earnings surprise of 66.7%.

Estimates for Prestige Consumer Healthcare’s fiscal 2026 earnings per share have increased 1 cent to $4.77 in the past 30 days. Shares of the company have jumped 37.2% in the past year compared with the industry’s 10.1% growth. PBH’s earnings surpassed estimates in three of the trailing four quarters and matched on one occasion, the average surprise being 2.8%. In the last reported quarter, it delivered an earnings surprise of 1.5%.