Laboratory Corporation of America (NYSE:LH) Holdings, widely known as LabCorp, has reached a new 52-week high, with its stock price soaring to $238.93. This milestone reflects a significant uptrend in the company's market performance, marking a noteworthy 20.01% increase in value over the past year. Investors have shown increased confidence in LabCorp, as the company continues to expand its diagnostics and drug development services, capitalizing on the growing demand for healthcare and clinical laboratory testing. The 52-week high serves as a testament to LabCorp's strong financial health and its strategic position within the healthcare sector.
In other recent news, Labcorp has reported a strong Q3 performance, with earnings and revenue surpassing Wall Street's expectations. The company's revenue climbed 7.4% to reach $3.28 billion, outdoing the average analyst projection of $3.26 billion. Additionally, Labcorp reported an adjusted profit of $3.50 per share, higher than the anticipated $3.48 per share. Despite these robust results, the company revised its full-year 2024 adjusted profit outlook, reducing the upper end of its forecast to $14.70 per share from the previous $14.90. Analysts from LSEG anticipate a profit of $14.56 per share for the period.
Piper Sandler initiated coverage on Labcorp, assigning a Neutral rating with a price target of $235. The firm highlighted Labcorp's potential role as a key player in the consolidation of smaller, high-growth laboratories. Meanwhile, Jefferies raised the price target on Labcorp shares, reflecting confidence in the company's core diagnostics business and its ongoing mergers and acquisitions activity. Baird also boosted the company's stock target, retaining an Outperform rating, following the finalized acquisition of Invitae (OTC:NVTAQ), which is expected to contribute significantly to Labcorp's revenue.
Labcorp has also secured $2 billion in senior notes, with the net proceeds expected to be used for redeeming or repaying existing indebtedness. This development, along with recent acquisitions and positive analyst coverage, highlights Labcorp's strategic financial moves amidst the evolving landscape of the diagnostics services industry.
InvestingPro Insights
As LabCorp reaches its new 52-week high, InvestingPro data provides additional context to the company's financial performance. The company's market capitalization stands at $19.92 billion, reflecting its substantial presence in the Healthcare Providers & Services industry. LabCorp's revenue for the last twelve months as of Q2 2024 was $12.49 billion, with a growth rate of 5.22%, indicating steady expansion in line with the increased demand for healthcare services mentioned in the article.
InvestingPro Tips highlight that LabCorp has been aggressively buying back shares, which often signals management's confidence in the company's future prospects. Additionally, the company boasts a high shareholder yield, potentially contributing to investor confidence and the stock's recent performance.
It's worth noting that LabCorp's P/E ratio (adjusted) for the last twelve months as of Q2 2024 is 24.87, which may be considered relatively high. This valuation could be reflective of the market's optimistic outlook on the company's growth potential in the diagnostics and drug development sectors.
For readers interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for LabCorp, providing deeper insights into the company's financial health and market position.
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