U.S. Markets closed
  • S&P 500

    3,443.12
    +16.20 (+0.47%)
     
  • Dow 30

    28,308.79
    +113.39 (+0.40%)
     
  • Nasdaq

    11,516.49
    +37.59 (+0.33%)
     
  • Russell 2000

    1,617.71
    +4.08 (+0.25%)
     
  • Crude Oil

    41.51
    +0.68 (+1.67%)
     
  • Gold

    1,909.40
    -2.30 (-0.12%)
     
  • Silver

    24.75
    +0.05 (+0.19%)
     
  • EUR/USD

    1.1829
    +0.0056 (+0.4731%)
     
  • 10-Yr Bond

    0.7970
    +0.0360 (+4.73%)
     
  • Vix

    29.35
    +0.17 (+0.58%)
     
  • GBP/USD

    1.2947
    +0.0007 (+0.0531%)
     
  • USD/JPY

    105.4590
    +0.0290 (+0.0275%)
     
  • BTC-USD

    11,898.21
    +841.20 (+7.61%)
     
  • CMC Crypto 200

    239.12
    +0.20 (+0.08%)
     
  • FTSE 100

    5,889.22
    +4.57 (+0.08%)
     
  • Nikkei 225

    23,567.04
    -104.09 (-0.44%)
     

LabCorp (LH) Gains As Market Dips: What You Should Know

Zacks Equity Research
·3 mins read

LabCorp (LH) closed at $187.99 in the latest trading session, marking a +0.58% move from the prior day. This change outpaced the S&P 500's 0.96% loss on the day. At the same time, the Dow lost 0.48%, and the tech-heavy Nasdaq lost 2.22%.

Prior to today's trading, shares of the medical laboratory operator had gained 6.98% over the past month. This has outpaced the Medical sector's loss of 0.24% and the S&P 500's loss of 4.04% in that time.

LH will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2020. On that day, LH is projected to report earnings of $4.77 per share, which would represent year-over-year growth of 64.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.71 billion, up 26.73% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.05 per share and revenue of $12.84 billion. These totals would mark changes of +24.12% and +11.1%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for LH. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.52% higher. LH is currently a Zacks Rank #3 (Hold).

Looking at its valuation, LH is holding a Forward P/E ratio of 13.3. This valuation marks a discount compared to its industry's average Forward P/E of 33.29.

We can also see that LH currently has a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Dental Supplies industry currently had an average PEG ratio of 2.78 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 48% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.