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LH Expands Genetic Testing in CRC Through New Collab: Stock to Gain?

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Key Takeaways

  • Labcorp teamed with Alliance for Clinical Trials in Oncology on a national colorectal cancer trial.
  • Labcorp will provide exclusive Invitae genetic testing for patients and at-risk relatives.
  • The NCI-sponsored study will assess outreach and multigene testing impacts on CRC care.

Labcorp (LH - Free Report) recently teamed up with the Alliance for Clinical Trials in Oncology to advance a national, multicenter clinical trial for patients newly diagnosed with colorectal cancer (“CRC”). This collaboration reflects Labcorp's continued commitment to advancing genetics-based approaches to improve outcomes for patients with cancer, while supporting high-impact clinical research in collaboration with leading research organizations.

Predicting LH Stock Movement Following the News

Following the announcement, Labcorp’s shares edged down 0.7%, finishing at $260.06 last Friday.

In recent years, Labcorp has built a significant number of strategic relationships with health systems and regional/local laboratories, expanding the patient and provider network, and strengthening its presence in key markets. In the first quarter of 2026, enterprise revenues grew 5.8% year over year, with net acquisitions contributing 1.4%. We expect this latest development to drive positive market sentiment toward LH stock in the coming days.

Labcorp has a market capitalization of $21.32 billion. The company’s earnings yield of 5.9% compares favorably with the industry’s 4% yield. In the trailing four quarters, it delivered an average earnings surprise of 2.52%. 

Significance of LH’s Collab for Multi-Institution Trial

According to various sources, inherited genetic variants contribute to approximately 10% of all colorectal cancer cases. Testing family members of individuals with an inherited cancer-associated variant, called cascade testing, is a well-established approach to cancer prevention, particularly for Lynch syndrome, the most common hereditary colorectal cancer syndrome. 

The trial will evaluate approaches to increase germline genetic testing among at-risk family members, as well as the impact of multigene panel testing on care for newly diagnosed patients. Leveraging its Invitae testing, Labcorp will serve as the exclusive genetic testing provider, supporting participating sites with its national scale and scientific expertise.

The trial will assess proactive outreach by healthcare providers which will improve participation of first-degree relatives in cascade genetic testing. In parallel, the trial will assess the impact of multigene panel testing on care for patients newly diagnosed with colorectal cancer.

About the Multi-Center CRC Genetic Testing Trial

The trial is sponsored by the National Cancer Institute (“NCI”) and led and conducted by the Alliance for Clinical Trials in Oncology. It includes participation from the NCI National Clinical Trials Network, which comprises academic medical centers, community oncology health systems and NCI-designated cancer centers. The study is expected to enroll patients and their relatives nationwide, including sites in Puerto Rico.

Industry Prospects Favor LH

Per the Grand View Research report, the global hereditary cancer testing market size is projected to reach $14.45 billion by 2033, growing at a CAGR of 13.76% from 2025 to 2033. The demand for hereditary cancer testing is increasing due to technological advancements in genetic testing for cancer detection, integration with precision medicine and growing awareness through public and government initiatives.

 

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Another Recent Development By LH

In the previous week, Labcorp announced the availability of its expanded DPYD Genotyping test to help identify cancer patients who may be at increased risk for severe or life-threatening side effects from fluoropyrimidine chemotherapy. 

LH Stock Price Performance

In the past year, LH’s shares have risen 5.4% compared with the industry’s 1% growth.

LH’s Zacks Rank and Key Picks

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

Some better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Integra LifeSciences (IART - Free Report) and Phibro Animal Health (PAHC - Free Report) . 

Globus Medical has an earnings yield of 5.5%, well ahead of the industry’s negative 3% yield. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 26.3%. The company’s shares have rallied 43.8% against the industry’s 4.8% decline 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.

Integra LifeSciences, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 16% against the industry’s negative 3% yield. Shares of the company have gained 22.8% compared with the industry’s 4.8% growth. IART’s earnings topped estimates in each of the trailing four quarters, the average surprise being 16.8%.

Phibro Animal Health, carrying a Zacks Rank #2 at present, has an earnings yield of 9.2% compared with the industry’s 2.8% yield. Shares of the company have climbed 43.1% against the industry’s 27.9% decline. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 16.3%.

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