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Labcorp Holdings Inc. (LH) Hit a 52 Week High, Can the Run Continue?
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A strong stock as of late has been Labcorp Holdings (LH - Free Report) . Shares have been marching higher, with the stock up 0.5% over the past month. The stock hit a new 52-week high of $283.47 in the previous session. Labcorp has gained 22.1% since the start of the year compared to the -2% move for the Zacks Medical sector and the -0.6% return for the Zacks Medical Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 24, 2025, Labcorp reported EPS of $4.35 versus consensus estimate of $4.14 while it beat the consensus revenue estimate by 1.14%.
For the current fiscal year, Labcorp is expected to post earnings of $16.3 per share on $14 in revenues. This represents a 11.87% change in EPS on a 7.65% change in revenues. For the next fiscal year, the company is expected to earn $17.89 per share on $14.7 in revenues. This represents a year-over-year change of 9.74% and 4.98%, respectively.
Valuation Metrics
Labcorp may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Labcorp has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 17.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.7X. On a trailing cash flow basis, the stock currently trades at 12.5X versus its peer group's average of 10.1X. Additionally, the stock has a PEG ratio of 1.79. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Labcorp an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Labcorp currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Labcorp passes the test. Thus, it seems as though Labcorp shares could have potential in the weeks and months to come.
How Does LH Stack Up to the Competition?
Shares of LH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Solventum Corporation (SOLV - Free Report) . SOLV has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of A.
Earnings were strong last quarter. Solventum Corporation beat our consensus estimate by 16.55%, and for the current fiscal year, SOLV is expected to post earnings of $5.89 per share on revenue of $8.36 billion.
Shares of Solventum Corporation have gained 0.6% over the past month, and currently trade at a forward P/E of 12.47X and a P/CF of 7.38X.
The Medical Services industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LH and SOLV, even beyond their own solid fundamental situation.
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Labcorp Holdings Inc. (LH) Hit a 52 Week High, Can the Run Continue?
A strong stock as of late has been Labcorp Holdings (LH - Free Report) . Shares have been marching higher, with the stock up 0.5% over the past month. The stock hit a new 52-week high of $283.47 in the previous session. Labcorp has gained 22.1% since the start of the year compared to the -2% move for the Zacks Medical sector and the -0.6% return for the Zacks Medical Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 24, 2025, Labcorp reported EPS of $4.35 versus consensus estimate of $4.14 while it beat the consensus revenue estimate by 1.14%.
For the current fiscal year, Labcorp is expected to post earnings of $16.3 per share on $14 in revenues. This represents a 11.87% change in EPS on a 7.65% change in revenues. For the next fiscal year, the company is expected to earn $17.89 per share on $14.7 in revenues. This represents a year-over-year change of 9.74% and 4.98%, respectively.
Valuation Metrics
Labcorp may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Labcorp has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 17.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.7X. On a trailing cash flow basis, the stock currently trades at 12.5X versus its peer group's average of 10.1X. Additionally, the stock has a PEG ratio of 1.79. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Labcorp an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Labcorp currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Labcorp passes the test. Thus, it seems as though Labcorp shares could have potential in the weeks and months to come.
How Does LH Stack Up to the Competition?
Shares of LH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Solventum Corporation (SOLV - Free Report) . SOLV has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of A.
Earnings were strong last quarter. Solventum Corporation beat our consensus estimate by 16.55%, and for the current fiscal year, SOLV is expected to post earnings of $5.89 per share on revenue of $8.36 billion.
Shares of Solventum Corporation have gained 0.6% over the past month, and currently trade at a forward P/E of 12.47X and a P/CF of 7.38X.
The Medical Services industry is in the top 41% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LH and SOLV, even beyond their own solid fundamental situation.