LH Stock Analysis — LabCorp
Sector: Healthcare
AI Verdict
LabCorp trades at 16.7x next year's earnings with nearly 60% EPS growth expected, which is cheap for the growth you're getting if its scale moat keeps competitors at bay, but the overbought RSI means a near-term pullback is likely.
Competitive Moat
LabCorp operates one of the largest clinical laboratory networks in the U.S., creating scale advantages in test menu breadth, logistics, and payer negotiations. Its nationwide infrastructure and deep relationships with hospitals and insurers make it difficult for smaller labs or new entrants to compete at similar cost or reach.
Summary
LabCorp is trading at a steep discount to its trailing P/E as analysts expect a huge jump in earnings over the next year.
Where It Stands
LabCorp is up 18.36% over the past year, trades at 16.7x next year's earnings (well below the healthcare median of 22x), and its RSI of 72.3 signals overbought territory.
Key Metrics
- RSI: 72.3 — Overbought
- Trailing P/E: 26.7x
- Forward P/E: 16.7x
- PEG Ratio: 0.45
- Earnings Growth: +0.6%
- Revenue Growth: +0.1%
- Market Cap: $26.2B
- Dividend Yield: 0.01%
- 1-Year Return: 18.36%
- 52-Week High: $323.97
- 52-Week Low: $244.52
Analyst Consensus
21 Buy · 6 Hold · 0 Sell (27 analysts)
Bull Case
With forward EPS growth expected at 59.6% and a forward P/E of 16.7x, you're paying a low price for unusually high earnings growth in this sector.
Bear Case
An RSI of 72.3 means the stock is overbought, so even a modest pullback to neutral RSI could erase recent gains.
Catalyst to Watch
Watch for quarterly earnings beats or guidance updates—if the 59.6% EPS growth materializes, the forward multiple looks cheap.