Laboratory Corporation of America Holdings logo

Laboratory Corporation of America Holdings(LH)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL RECENCY
2-STAR RATING
Consider higher Upturn Star rating
BUY for 1 day
PROFIT SINCE LAST BUY
0.00%
LAST CLOSE
$328.95
10/23/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for LH

10/23/2026: LH (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Laboratory Corporation of America Holdings is a major provider of clinical laboratory services and biopharmaceutical drug development support. The company maintains a leading position in the diagnostic market, supported by a vast, scalable laboratory network that drives operational efficiency. Its investment story centers on the integration of testing with data-rich clinical research to capture growth in personalized medicine. However, the company faces persistent risks from reimbursement pressures and intense competition from large rivals and hospital labs. Suitable for investors seeking exposure to the healthcare services sector, the stock is a long-term play on diagnostic volume and pharmaceutical outsourcing, with investors monitoring legislative trends and margin sustainability closely.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company provides steady growth in life sciences but lacks the explosive growth profile of early-stage tech.
Momentum investorWeak fitThe stock typically exhibits slower, long-term movement rather than the high-volatility spikes sought by momentum strategies.
Value investorStrong fitConsistent cash flows and stable market positioning often make it attractive to value-oriented investors.
Dividend investorMixed fitThe company pays a dividend but is primarily focused on capital reinvestment and growth.
Low-risk investorStrong fit while signal remains positiveAs a stable healthcare utility, it generally offers lower volatility than pure-play biotech or medical tech stocks.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumHealthcare stocks can be sensitive to legislative and reimbursement news.
Valuation riskMediumMarket pricing often fluctuates based on broader economic growth expectations.
Competition risk (diagnostics/CRO)Medium / highThe market is highly saturated with large-scale competitors fighting for physician and pharma contracts.
Business qualityStrongThe company maintains a high-quality, essential service business model.
Dividend incomeLowIncome generation is secondary to growth and reinvestment objectives.
Execution riskMediumIntegrating large acquisitions and managing complex laboratory logistics remains a core operational challenge.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit 9.28%
Avg. Invested days 42
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/23/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
LH receives a 3-star rating, supported by solid company fundamentals, solid quantitative characteristics, and solid analyst coverage. The rating is constrained by weak price momentum, and limited analyst upside.

Company Fundamentals

★★★★★
LH has solid overall fundamentals (4 stars), with moderate financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, solid earnings growth (+17.5%) and solid cash generation (FCF margin 8.6%) are partially offset by moderate revenue growth (+7.2%), soft profitability (net margin 6.3%), very low insider ownership of 0.35%.

Financial Health Rating

★★★★★
LH's financial health is supported by strong cash strength, including free-cash-flow generation of $1.2B (8.6% of revenue). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Earnings growth is LH's strongest growth driver at +17.5% FY2025 versus FY2024 (solid, 4 stars). Revenue growth (+7.2%, moderate) and free-cash-flow growth (+10.0%, solid) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 101.4% and approximately 99.5% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.35%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 8.11%
Vanguard Capital Management, LLC 6.61%
Victory Capital Management Inc. 5.96%
State Street Corp 4.82%
Vanguard Portfolio Management, LLC 4.54%

Unit Economics (Per $1K Revenue)

★★★★★
LH generates approximately $268 of gross profit, $109 of operating income, and $86 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Soft margins and solid cash conversion support a 3-star rating, while capital efficiency is soft.

Economic Dimensions

★★★★★
Effective Tax Rate: 20.75%

Quantitative Style Profile

★★★★★
LH has a high-quality, large-cap, liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 26.68B USD
Price to earnings Ratio 27.21
1Y Target Price 345.12
Price to earnings Ratio 27.21
1Y Target Price 345.12
Volume (30-day avg) 740.3K shares
Beta 0.85
52 Weeks Range 242.07 - 341.06
Updated Date 10/24/2026
52 Weeks Range 242.07 - 341.06
Updated Date 10/24/2026
Dividends yield (FY) 0.87%
Basic EPS (TTM) 12.09

How Company Makes Money

Business areaWhat it includesRetail investor read
DiagnosticsClinical laboratory testing services for physicians and patients.The company makes money every time a routine or specialized blood test is processed in its labs.
Biopharma Laboratory ServicesDrug development, clinical trials, and research support.The company is paid by drug developers to handle the technical and research-heavy parts of bringing new medicines to market.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Earnings Date

Report Date 2026-10-28
When Before Market
Estimate 4.65
Actual -

Profitability

Profit Margin 6.99%
Operating Margin (TTM) 12.24%

Management Effectiveness

Return on Assets (TTM) 5.53%
Return on Equity (TTM) 11.73%

Valuation

Trailing PE 27.21
Forward PE 16.16
Enterprise Value 32.80B
Price to Sales(TTM) 1.86
Enterprise Value 32.80B
Price to Sales(TTM) 1.86
Enterprise Value to Revenue 2.22
Enterprise Value to EBITDA 14.78
Shares Outstanding 81.10M
Shares Floating 80.72M
Shares Outstanding 81.10M
Shares Floating 80.72M
Percent Insiders 0.35
Percent Institutions 101.39

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

Form CRS provides a relationship summary of our automated advisory services, flat subscription fees, and conflicts of interest. Form ADV Part 2A brochure contains complete details on services, billing, and disclosures. If any summary differs from our current regulatory filings, the filed Form ADV controls.