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Is it the Right Time to Hold Labcorp Stock in Your Portfolio?
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Key Takeaways
Labcorp drives growth through strategic acquisitions and partnerships, boosting revenues and national reach.
LH targets high-growth areas with oncology, women's health, neuro tests and consumer-focused launches.
Labcorp faces macro risks and currency headwinds, weighing on international revenues and profitability.
Labcorp Holdings Inc. (LH - Free Report) , or Labcorp, is well-poised to grow in the coming quarters, courtesy of its strategic focus on key specialty areas. The company maintains a solid pipeline of potential acquisitions that fit its financial strategy and will enhance its organic growth. A strong focus on operational efficiency adds to its appeal. Yet, macroeconomic challenges and adverse currency movements may hinder Labcorp’s full growth potential.
In the past year, this Zacks Rank #3 (Hold) stock has risen 20% against the 16.7% fall of the industry. It has also outpaced the S&P 500 composite’s 15.9% growth.
The renowned healthcare diagnostics company has a market capitalization of $23.12 billion. LH has an earnings yield of 5.8% compared to the industry’s 4.2% yield. Labcorp surpassed earnings estimates in each of the trailing four quarters, the average surprise being 2.5%.
Let’s dive deeper.
Tailwinds for Labcorp
Strategic Acquisitions and Partnerships to Drive Growth: In the second quarter of 2025, the company invested $25 million in acquisitions and partnerships, with acquisitions contributing 3.5% to revenue growth. Some of the transactions announced include the acquisition of key clinical and anatomic pathology assets from Incyte Diagnostics in the Pacific Northwest and the extension of its long-term agreement with UHealth, the University of Miami Health System. Labcorp also advanced its acquisition of select oncology and clinical testing assets from BioReference Health, set to close in the second half of 2025.
Image Source: Zacks Investment Research
In addition, the company acquired key assets from North Mississippi Health Services' Ambulatory Outreach Laboratory business and became the referral lab for its seven hospitals and clinical laboratories. In 2024, Labcorp strengthened its national presence through key acquisitions, including Lab Works’ molecular testing site in Alabama, Ballad Health’s outreach labs and assets from MAWD Pathology Group. The Invitae acquisition extended Labcorp’s capabilities in genetic testing solutions for oncology and select rare diseases.
Targeted Development in High-Growth Areas: Labcorp is focusing more on key specialty testing areas such as oncology, women’s health, autoimmune disease and neurology, which are expected to grow up to 3x faster than other therapeutic areas. In the second quarter of 2025, the company launched Labcorp Plasma Detect — a liquid biopsy test that assesses colon cancer recurrence risk and PGDx elio plasma focus Dx — the first and only FDA-authorized pan-solid tumor liquid biopsy test for targeted treatment guidance. Labcorp advanced its capabilities in Alzheimer's disease through the launch of pTau-217/Beta Amyloid 42 Ratio and also plans to offer Fujirebio's FDA-cleared biomarker test for diagnostic support.
Furthermore, the company launched several consumer-initiated tests through the Labcorp OnDemand platform, including tests that measure cortisol and leptin levels. It also rolled out an improved Ovia app, providing women with a single platform to manage their health journey. Another new launch, Labcorp Whole Health Solutions, offers specialized test panels and a test menu of more than 1,000 scientifically backed biomarkers for cardiometabolic health, hormones, micronutrients, longevity and wellness.
Focus on Operational Efficiency: Labcorp is focused on enhancing customer and employee experiences and leveraging technology to drive ongoing operational and process efficiencies. Its LaunchPad initiative successfully achieved the targeted savings of $350 million by the end of 2024.
LH continues to focus on driving about $100-$125 million in savings each year as part of this initiative through facility and workforce optimization, technology upgrades, acquisition integration and process redesign. In the second quarter of 2025, Launchpad supported the 20-basis-point (bps) improvement in the adjusted operating margin despite the 30-bps headwind from Invitae. Further, the company is bringing forward new operational efficiencies aimed at improving margins, such as the Labcorp Diagnostic Assistant and eClaim Assist digital platform.
Factors Weighing on LH
Macroeconomic Risks: Labcorp’s operations are heavily dependent on the demand for diagnostic testing and drug development services from patients, physicians, hospitals, medical device companies and others. In recent times, volatilities in global economic conditions, including inflation, have significantly reduced the demand for these services, affecting customers’ ability to pay and, consequently, the profitability of the company. Added to this, the escalation of the present geopolitical tensions and retaliatory tariffs is putting pressure on the supply chain and services, increasing the prices of offerings.
Exposed to Currency Headwind: Labcorp's huge exposure in international markets makes it vulnerable to currency fluctuations. With the recent upward trend observed in the value of the U.S. dollar, further acceleration expected by analysts in this value will cause the company’s revenues to face a tough situation overseas. In the second quarter of 2025, foreign currency had a 0.1% adverse impact on revenues.
LH Stock Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for Labcorp’s 2025 earnings has increased 1.6% to $16.30.
The Zacks Consensus Estimate for 2025 revenues is pegged at $14.00 billion, suggesting a 7.7% improvement from the 2024 comparable figure.
Envista has an estimated earnings growth rate of 15.2% for fiscal 2026 compared with the S&P 500 composite’s 11.7% growth. Shares of the company have rallied 13% compared with the industry’s 4.4% growth. NVST’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.5%.
Phibro Animal Health, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 26% compared with the industry’s 14.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 30.6%. PAHC shares have surged 51.7% compared with the industry’s 4.4% growth in the past year.
Boston Scientific, carrying a Zacks Rank #2, has an earnings yield of 2.8% compared to the industry’s -0.8%. Shares of the company have rallied 31.6% compared with the industry’s 4.3% growth. BSX’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 8.11%.
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Is it the Right Time to Hold Labcorp Stock in Your Portfolio?
Key Takeaways
Labcorp Holdings Inc. (LH - Free Report) , or Labcorp, is well-poised to grow in the coming quarters, courtesy of its strategic focus on key specialty areas. The company maintains a solid pipeline of potential acquisitions that fit its financial strategy and will enhance its organic growth. A strong focus on operational efficiency adds to its appeal. Yet, macroeconomic challenges and adverse currency movements may hinder Labcorp’s full growth potential.
In the past year, this Zacks Rank #3 (Hold) stock has risen 20% against the 16.7% fall of the industry. It has also outpaced the S&P 500 composite’s 15.9% growth.
The renowned healthcare diagnostics company has a market capitalization of $23.12 billion. LH has an earnings yield of 5.8% compared to the industry’s 4.2% yield. Labcorp surpassed earnings estimates in each of the trailing four quarters, the average surprise being 2.5%.
Let’s dive deeper.
Tailwinds for Labcorp
Strategic Acquisitions and Partnerships to Drive Growth: In the second quarter of 2025, the company invested $25 million in acquisitions and partnerships, with acquisitions contributing 3.5% to revenue growth. Some of the transactions announced include the acquisition of key clinical and anatomic pathology assets from Incyte Diagnostics in the Pacific Northwest and the extension of its long-term agreement with UHealth, the University of Miami Health System. Labcorp also advanced its acquisition of select oncology and clinical testing assets from BioReference Health, set to close in the second half of 2025.
Image Source: Zacks Investment Research
In addition, the company acquired key assets from North Mississippi Health Services' Ambulatory Outreach Laboratory business and became the referral lab for its seven hospitals and clinical laboratories. In 2024, Labcorp strengthened its national presence through key acquisitions, including Lab Works’ molecular testing site in Alabama, Ballad Health’s outreach labs and assets from MAWD Pathology Group. The Invitae acquisition extended Labcorp’s capabilities in genetic testing solutions for oncology and select rare diseases.
Targeted Development in High-Growth Areas: Labcorp is focusing more on key specialty testing areas such as oncology, women’s health, autoimmune disease and neurology, which are expected to grow up to 3x faster than other therapeutic areas. In the second quarter of 2025, the company launched Labcorp Plasma Detect — a liquid biopsy test that assesses colon cancer recurrence risk and PGDx elio plasma focus Dx — the first and only FDA-authorized pan-solid tumor liquid biopsy test for targeted treatment guidance. Labcorp advanced its capabilities in Alzheimer's disease through the launch of pTau-217/Beta Amyloid 42 Ratio and also plans to offer Fujirebio's FDA-cleared biomarker test for diagnostic support.
Furthermore, the company launched several consumer-initiated tests through the Labcorp OnDemand platform, including tests that measure cortisol and leptin levels. It also rolled out an improved Ovia app, providing women with a single platform to manage their health journey. Another new launch, Labcorp Whole Health Solutions, offers specialized test panels and a test menu of more than 1,000 scientifically backed biomarkers for cardiometabolic health, hormones, micronutrients, longevity and wellness.
Focus on Operational Efficiency: Labcorp is focused on enhancing customer and employee experiences and leveraging technology to drive ongoing operational and process efficiencies. Its LaunchPad initiative successfully achieved the targeted savings of $350 million by the end of 2024.
LH continues to focus on driving about $100-$125 million in savings each year as part of this initiative through facility and workforce optimization, technology upgrades, acquisition integration and process redesign. In the second quarter of 2025, Launchpad supported the 20-basis-point (bps) improvement in the adjusted operating margin despite the 30-bps headwind from Invitae. Further, the company is bringing forward new operational efficiencies aimed at improving margins, such as the Labcorp Diagnostic Assistant and eClaim Assist digital platform.
Factors Weighing on LH
Macroeconomic Risks: Labcorp’s operations are heavily dependent on the demand for diagnostic testing and drug development services from patients, physicians, hospitals, medical device companies and others. In recent times, volatilities in global economic conditions, including inflation, have significantly reduced the demand for these services, affecting customers’ ability to pay and, consequently, the profitability of the company. Added to this, the escalation of the present geopolitical tensions and retaliatory tariffs is putting pressure on the supply chain and services, increasing the prices of offerings.
Exposed to Currency Headwind: Labcorp's huge exposure in international markets makes it vulnerable to currency fluctuations. With the recent upward trend observed in the value of the U.S. dollar, further acceleration expected by analysts in this value will cause the company’s revenues to face a tough situation overseas. In the second quarter of 2025, foreign currency had a 0.1% adverse impact on revenues.
LH Stock Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for Labcorp’s 2025 earnings has increased 1.6% to $16.30.
The Zacks Consensus Estimate for 2025 revenues is pegged at $14.00 billion, suggesting a 7.7% improvement from the 2024 comparable figure.
Key Picks
Some better-ranked stocks in the broader medical space are Envista (NVST - Free Report) , Phibro Animal Health (PAHC - Free Report) and Boston Scientific (BSX - Free Report) .
Envista has an estimated earnings growth rate of 15.2% for fiscal 2026 compared with the S&P 500 composite’s 11.7% growth. Shares of the company have rallied 13% compared with the industry’s 4.4% growth. NVST’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.5%.
NVST sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Phibro Animal Health, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 26% compared with the industry’s 14.2%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 30.6%. PAHC shares have surged 51.7% compared with the industry’s 4.4% growth in the past year.
Boston Scientific, carrying a Zacks Rank #2, has an earnings yield of 2.8% compared to the industry’s -0.8%. Shares of the company have rallied 31.6% compared with the industry’s 4.3% growth. BSX’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 8.11%.