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Should You Continue to Hold Labcorp Stock in Your Portfolio?
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Key Takeaways
Labcorp expanded specialty testing in oncology, neurology and genetic testing to drive growth.
LH invested $202M in acquisitions and expanded partnerships with Roche, SOMOS and PathAI.
Labcorp expects 2026 revenue growth of 5.4% as earnings estimates rose 1.9% in 30 days.
Labcorp Holdings Inc. (LH - Free Report) or Labcorp’s ongoing momentum in the high-growth specialty testing areas continues to support its prospects. The company is strengthening its position as a top partner for health systems and regional local laboratories to expand access to its broad test portfolio. It leverages AI and advanced technologies to enhance margins and customer experience. Yet, macroeconomic headwinds and currency fluctuations may hurt Labcorp’s results of operations.
Over the past year, this Zacks Rank #2 (Buy) stock has risen 5.5% compared with the industry’s 1.9% jump and the S&P 500 composite’s 32.5% growth.
The renowned healthcare diagnostics company has a market capitalization of $21.11 billion. LH has an earnings yield of 7% compared with the industry’s 4.4% yield. Labcorp surpassed earnings estimates in each of the trailing four quarters, the average surprise being 3.3%.
Let’s dive deeper.
Tailwinds for Labcorp
Focus on High-Growth Areas: Labcorp continues to expand its business in specialty testing areas such as oncology, women’s health, autoimmune disease and neurology, which are expected to grow up to three times faster than other therapeutic areas. The company supported the development of more than 85% of new drugs approved by the FDA last year, including in these core specialty areas. Neurology experienced double-digit growth in the first quarter of 2026, driven by an expanded Alzheimer's testing portfolio. Oncology growth was supported by the launch of several liquid biopsy tests and expanded access to MRD solutions over the past year.
Image Source: Zacks Investment Research
The integration of Invitae has further expanded its reach in genetic testing solutions. Labcorp is also collaborating with Illumina to advance precision oncology through applications of next-generation sequencing (NGS) solutions across the healthcare ecosystem. The consumer health platform, Labcorp OnDemand, delivered double-digit growth in the first quarter, supported by its expanded offerings.
Strategic Acquisitions and Partnerships to Drive Growth: In recent years, Labcorp has built a significant number of strategic relationships with health systems and regional/local laboratories, expanding its patient and provider network, and strengthening its presence in key markets. In the first quarter of 2026, it invested $202 million in acquisitions. Enterprise revenues grew 5.8% year over year, with net acquisitions contributing 1.4%.
Recent activities include the purchase of select assets of Crouse Health’s Laboratory Alliance of Central New York’s (Lab Alliance) laboratory business and an agreement to manage their daily inpatient lab operations. Labcorp completed the acquisition of select assets of New York-based Empire City Laboratories. LH is the first U.S. commercial laboratory with an agreement to implement Roche’s cobas Mass Spec solution, which automates the entire workflow, from sample preparation to result interpretation. The company also signed a new multi-year partnership agreement with SOMOS, one of the largest Independent Practice Associations (IPAs) of community-based primary care and specialty providers in New York.
Focus on Operational Efficiency: Labcorp continues to benefit from its launchpad initiatives, which target $100-$125 million in savings annually. In the first quarter of 2026, the company expanded its collaboration with PathAI to deploy an FDA-cleared digital pathology platform across its national anatomic pathology labs and hospital lab partnerships. Together with Amazon Web Services and Datavant, Labcorp is developing a new AI-powered real-world data platform to accelerate Alzheimer's research.
More recently, Labcorp teamed up with Optum.ai to simplify laboratory operations by advancing AI. Across its core operations, AI and automation are already deployed in areas such as pathology, cytology and microbiology. Labcorp’s generative AI tool, Test Finder, is designed to simplify lab test selection and is also integrated into Labcorp Diagnostic Assistant.
What Ails LH Stock?
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.
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 the customers’ ability to pay and the company’s profitability. 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.
LH Stock Estimate Trend
Over the past 30 days, the Zacks Consensus Estimate for Labcorp’s 2026 earnings has increased 1.9% to $17.99.
The Zacks Consensus Estimate for 2026 revenues is pegged at $14.70 billion, suggesting a 5.4% improvement from the prior year.
Key Picks
Some better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) .
Globus Medical has an earnings yield of 6.1% compared to the industry’s negative 1.1% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 43.5% against the industry’s 4.2% fall over the past year.
Align Technology, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 10.3% for fiscal 2026 compared with the industry’s 9.5% growth. Shares of the company have dropped 4.6% compared to the industry’s 3.7% rise. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.
Integra LifeSciences, carrying a Zacks Rank #2, has an earnings yield of 15.7% against the industry’s negative 15.7% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 23% against the industry’s 4.2% decline over the past year.
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Should You Continue to Hold Labcorp Stock in Your Portfolio?
Key Takeaways
Labcorp Holdings Inc. (LH - Free Report) or Labcorp’s ongoing momentum in the high-growth specialty testing areas continues to support its prospects. The company is strengthening its position as a top partner for health systems and regional local laboratories to expand access to its broad test portfolio. It leverages AI and advanced technologies to enhance margins and customer experience. Yet, macroeconomic headwinds and currency fluctuations may hurt Labcorp’s results of operations.
Over the past year, this Zacks Rank #2 (Buy) stock has risen 5.5% compared with the industry’s 1.9% jump and the S&P 500 composite’s 32.5% growth.
The renowned healthcare diagnostics company has a market capitalization of $21.11 billion. LH has an earnings yield of 7% compared with the industry’s 4.4% yield. Labcorp surpassed earnings estimates in each of the trailing four quarters, the average surprise being 3.3%.
Let’s dive deeper.
Tailwinds for Labcorp
Focus on High-Growth Areas: Labcorp continues to expand its business in specialty testing areas such as oncology, women’s health, autoimmune disease and neurology, which are expected to grow up to three times faster than other therapeutic areas. The company supported the development of more than 85% of new drugs approved by the FDA last year, including in these core specialty areas. Neurology experienced double-digit growth in the first quarter of 2026, driven by an expanded Alzheimer's testing portfolio. Oncology growth was supported by the launch of several liquid biopsy tests and expanded access to MRD solutions over the past year.
Image Source: Zacks Investment Research
The integration of Invitae has further expanded its reach in genetic testing solutions. Labcorp is also collaborating with Illumina to advance precision oncology through applications of next-generation sequencing (NGS) solutions across the healthcare ecosystem. The consumer health platform, Labcorp OnDemand, delivered double-digit growth in the first quarter, supported by its expanded offerings.
Strategic Acquisitions and Partnerships to Drive Growth: In recent years, Labcorp has built a significant number of strategic relationships with health systems and regional/local laboratories, expanding its patient and provider network, and strengthening its presence in key markets. In the first quarter of 2026, it invested $202 million in acquisitions. Enterprise revenues grew 5.8% year over year, with net acquisitions contributing 1.4%.
Recent activities include the purchase of select assets of Crouse Health’s Laboratory Alliance of Central New York’s (Lab Alliance) laboratory business and an agreement to manage their daily inpatient lab operations. Labcorp completed the acquisition of select assets of New York-based Empire City Laboratories. LH is the first U.S. commercial laboratory with an agreement to implement Roche’s cobas Mass Spec solution, which automates the entire workflow, from sample preparation to result interpretation. The company also signed a new multi-year partnership agreement with SOMOS, one of the largest Independent Practice Associations (IPAs) of community-based primary care and specialty providers in New York.
Focus on Operational Efficiency: Labcorp continues to benefit from its launchpad initiatives, which target $100-$125 million in savings annually. In the first quarter of 2026, the company expanded its collaboration with PathAI to deploy an FDA-cleared digital pathology platform across its national anatomic pathology labs and hospital lab partnerships. Together with Amazon Web Services and Datavant, Labcorp is developing a new AI-powered real-world data platform to accelerate Alzheimer's research.
More recently, Labcorp teamed up with Optum.ai to simplify laboratory operations by advancing AI. Across its core operations, AI and automation are already deployed in areas such as pathology, cytology and microbiology. Labcorp’s generative AI tool, Test Finder, is designed to simplify lab test selection and is also integrated into Labcorp Diagnostic Assistant.
What Ails LH Stock?
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.
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 the customers’ ability to pay and the company’s profitability. 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.
LH Stock Estimate Trend
Over the past 30 days, the Zacks Consensus Estimate for Labcorp’s 2026 earnings has increased 1.9% to $17.99.
The Zacks Consensus Estimate for 2026 revenues is pegged at $14.70 billion, suggesting a 5.4% improvement from the prior year.
Key Picks
Some better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) .
Globus Medical has an earnings yield of 6.1% compared to the industry’s negative 1.1% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 43.5% against the industry’s 4.2% fall over the past year.
GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 10.3% for fiscal 2026 compared with the industry’s 9.5% growth. Shares of the company have dropped 4.6% compared to the industry’s 3.7% rise. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.
Integra LifeSciences, carrying a Zacks Rank #2, has an earnings yield of 15.7% against the industry’s negative 15.7% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 23% against the industry’s 4.2% decline over the past year.