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Should You Continue to Hold LH Stock in Your Portfolio?
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Key Takeaways
LH boosts its specialty testing portfolio and expands market reach through new offerings and channels.
Labcorp advanced growth with major lab asset buys and extended systemwide health-partner deals.
Labcorp faces macro risks and currency headwinds, weighing on international revenues and profitability.
Labcorp Holdings Inc. (LH - Free Report) , or Labcorp, continues to expand its business in specialty testing areas, such as oncology, women’s health, autoimmune disease and neurology. The company’s strategic relationships with health systems and regional/local laboratories have expanded its patient and provider network and strengthened its presence in key markets. Solid financial stability further adds to the stock’s appeal. Meanwhile, macroeconomic challenges and adverse currency impacts raise concerns for Labcorp’s operations.
In the past year, this Zacks Rank #3 (Hold) stock has rallied 16.8% compared with the 9.4% growth of the industry. Meanwhile, the S&P 500 composite has risen 18.9% in the same period.
The renowned healthcare diagnostics company has a market capitalization of $22.28 billion. LH has an earnings yield of 6.1% compared to the industry’s 3.4% yield. Labcorp surpassed earnings estimates in each of the trailing four quarters, the average surprise being 2.7%.
Let’s dive deeper.
Tailwinds for Labcorp
Targeted Development in High-Growth Areas: In the third quarter of 2025, the company strengthened its oncology and genetic testing portfolio by extending OmniSeq INSIGHT to evaluate ovarian tumors for homologous recombination deficiency. PGDx elio tissue complete became the first test of its kind to receive CE marking under the European Union's In Vitro Diagnostic Regulation. As a commercial partner, Labcorp will expand access to Geneoscopy’s new FDA-approved, simplified at-home collection method for the ColoSense colorectal cancer screening test.
Image Source: Zacks Investment Research
Further, Labcorp expanded access to the Invitae genetic tests through Epic Aura, enabling streamlined ordering and results delivery for Epic customers.Labcorp expanded its neurology capabilities with two new Alzheimer's tests for specialty and primary care settings. In addition, the Labcorp OnDemand channel maintained strong momentum.
Strategic Acquisitions and Partnerships to Drive Growth: In the third quarter of 2025, Labcorp invested $268 million in acquisitions and partnerships, with acquisitions contributing 2.2% to top-line growth. The company signed agreements to acquire select assets of Laboratory Alliance of Central New York and Empire City Laboratories, and with Crouse Health to manage their inpatient labs. Labcorp also completed the purchase of select oncology and clinical testing assets from BioReference Health. In July, Labcorp agreed to acquire select assets of the ambulatory outreach laboratory services of Community Health Systems across 13 states, expected to close by 2025-end.
Additionally, the company extended its long-term agreement with UHealth, the University of Miami Health System and acquired key clinical and anatomic pathology assets from Incyte Diagnostics in the Pacific Northwest.
Solvency, Buybacks and Dividends: As of the end of the third quarter of 2025, Labcorp reported cash and cash equivalents of $598.1 million and $500 million in short-term debt. Long-term debt was $5.08 billion, almost consistent with second-quarter levels. The company had a times interest earned ratio of 5.3%, consistent with the previous quarter. Labcorp also returned capital to shareholders through its share repurchase program and dividends. During the quarter, it paid $59.9 million in dividends and bought back $25 million of stock.
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.
LH Stock Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for Labcorp’s 2025 earnings has increased 1 cent to $16.33.
The Zacks Consensus Estimate for 2025 revenues is pegged at $13.99 billion, suggesting a 7.6% improvement from the 2024 comparable figure.
Globus Medical has an estimated 2025 earnings growth rate of 18.1% compared with the industry’s 13.6% growth. Shares of the company have risen 8.5% compared with the industry’s 5.7% growth. GMED’s earnings have surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 16.24%.
Boston Scientific, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.3%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.36%. BSX shares have gained 13.2% compared with the industry’s 4.9% growth in the past year.
Medtronic, carrying a Zacks Rank #2, has an earnings yield of 5.4% compared to the industry’s flat growth. Shares of the company have rallied 29.4% compared with the industry’s 4.9% growth. MDT’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 2.75%.
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Should You Continue to Hold LH Stock in Your Portfolio?
Key Takeaways
Labcorp Holdings Inc. (LH - Free Report) , or Labcorp, continues to expand its business in specialty testing areas, such as oncology, women’s health, autoimmune disease and neurology. The company’s strategic relationships with health systems and regional/local laboratories have expanded its patient and provider network and strengthened its presence in key markets. Solid financial stability further adds to the stock’s appeal. Meanwhile, macroeconomic challenges and adverse currency impacts raise concerns for Labcorp’s operations.
In the past year, this Zacks Rank #3 (Hold) stock has rallied 16.8% compared with the 9.4% growth of the industry. Meanwhile, the S&P 500 composite has risen 18.9% in the same period.
The renowned healthcare diagnostics company has a market capitalization of $22.28 billion. LH has an earnings yield of 6.1% compared to the industry’s 3.4% yield. Labcorp surpassed earnings estimates in each of the trailing four quarters, the average surprise being 2.7%.
Let’s dive deeper.
Tailwinds for Labcorp
Targeted Development in High-Growth Areas: In the third quarter of 2025, the company strengthened its oncology and genetic testing portfolio by extending OmniSeq INSIGHT to evaluate ovarian tumors for homologous recombination deficiency. PGDx elio tissue complete became the first test of its kind to receive CE marking under the European Union's In Vitro Diagnostic Regulation. As a commercial partner, Labcorp will expand access to Geneoscopy’s new FDA-approved, simplified at-home collection method for the ColoSense colorectal cancer screening test.
Image Source: Zacks Investment Research
Further, Labcorp expanded access to the Invitae genetic tests through Epic Aura, enabling streamlined ordering and results delivery for Epic customers.Labcorp expanded its neurology capabilities with two new Alzheimer's tests for specialty and primary care settings. In addition, the Labcorp OnDemand channel maintained strong momentum.
Strategic Acquisitions and Partnerships to Drive Growth: In the third quarter of 2025, Labcorp invested $268 million in acquisitions and partnerships, with acquisitions contributing 2.2% to top-line growth. The company signed agreements to acquire select assets of Laboratory Alliance of Central New York and Empire City Laboratories, and with Crouse Health to manage their inpatient labs. Labcorp also completed the purchase of select oncology and clinical testing assets from BioReference Health. In July, Labcorp agreed to acquire select assets of the ambulatory outreach laboratory services of Community Health Systems across 13 states, expected to close by 2025-end.
Additionally, the company extended its long-term agreement with UHealth, the University of Miami Health System and acquired key clinical and anatomic pathology assets from Incyte Diagnostics in the Pacific Northwest.
Solvency, Buybacks and Dividends: As of the end of the third quarter of 2025, Labcorp reported cash and cash equivalents of $598.1 million and $500 million in short-term debt. Long-term debt was $5.08 billion, almost consistent with second-quarter levels. The company had a times interest earned ratio of 5.3%, consistent with the previous quarter. Labcorp also returned capital to shareholders through its share repurchase program and dividends. During the quarter, it paid $59.9 million in dividends and bought back $25 million of stock.
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.
LH Stock Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for Labcorp’s 2025 earnings has increased 1 cent to $16.33.
The Zacks Consensus Estimate for 2025 revenues is pegged at $13.99 billion, suggesting a 7.6% improvement from the 2024 comparable figure.
Key Picks
Some better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Boston Scientific (BSX - Free Report) and Medtronic (MDT - Free Report) .
Globus Medical has an estimated 2025 earnings growth rate of 18.1% compared with the industry’s 13.6% growth. Shares of the company have risen 8.5% compared with the industry’s 5.7% growth. GMED’s earnings have surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 16.24%.
GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boston Scientific, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.3%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.36%. BSX shares have gained 13.2% compared with the industry’s 4.9% growth in the past year.
Medtronic, carrying a Zacks Rank #2, has an earnings yield of 5.4% compared to the industry’s flat growth. Shares of the company have rallied 29.4% compared with the industry’s 4.9% growth. MDT’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 2.75%.