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Laboratory Corporation of America Holdings (LH)



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Upturn Advisory Summary
08/28/2025: LH (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $293.76
1 Year Target Price $293.76
13 | Strong Buy |
3 | Buy |
4 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 5.23% | Avg. Invested days 43 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 22.88B USD | Price to earnings Ratio 30.39 | 1Y Target Price 293.76 |
Price to earnings Ratio 30.39 | 1Y Target Price 293.76 | ||
Volume (30-day avg) 20 | Beta 0.76 | 52 Weeks Range 208.23 - 282.74 | Updated Date 08/29/2025 |
52 Weeks Range 208.23 - 282.74 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 1.03% | Basic EPS (TTM) 9.06 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 5.66% | Operating Margin (TTM) 11.3% |
Management Effectiveness
Return on Assets (TTM) 4.44% | Return on Equity (TTM) 9.26% |
Valuation
Trailing PE 30.39 | Forward PE 16.95 | Enterprise Value 28775299000 | Price to Sales(TTM) 1.7 |
Enterprise Value 28775299000 | Price to Sales(TTM) 1.7 | ||
Enterprise Value to Revenue 2.13 | Enterprise Value to EBITDA 15.38 | Shares Outstanding 83100000 | Shares Floating 82662894 |
Shares Outstanding 83100000 | Shares Floating 82662894 | ||
Percent Insiders 0.34 | Percent Institutions 100.03 |
Upturn AI SWOT
Laboratory Corporation of America Holdings

Company Overview
History and Background
Laboratory Corporation of America Holdings (Labcorp) was formed in 1995 through the merger of Roche Biomedical Laboratories and National Health Laboratories. Founded in 1969 as Biomedical Laboratories, Labcorp has grown through acquisitions and organic growth to become a leading global life sciences company. A significant milestone was its role in COVID-19 testing during the pandemic.
Core Business Areas
- Labcorp Diagnostics: Offers a broad range of routine and specialized clinical testing services to healthcare providers, hospitals, managed care organizations, and other clinical laboratories.
- Labcorp Drug Development: Provides comprehensive drug development services, from early-stage research to clinical trials, for pharmaceutical and biotechnology companies. This segment was spun-off into a new company called Fortrea (FTRE) effective July 3, 2023.
Leadership and Structure
Adam Schechter is the Chairman and CEO. The organizational structure includes various divisions focused on specific testing areas and support functions like finance, operations, and IT. Following the spinoff, Labcorp is primarily diagnostics focused.
Top Products and Market Share
Key Offerings
- Routine Clinical Testing: Includes blood tests, urine tests, and other common diagnostic tests used for general health monitoring and disease screening. Competitors include Quest Diagnostics and regional labs. Estimated revenue is a significant portion of overall Diagnostics revenue, but specific figures are not broken out. Market share varies regionally.
- Specialty and Esoteric Testing: Includes genetic testing, cancer diagnostics, and other specialized tests. Competitors include Mayo Clinic Laboratories and NeoGenomics. This is a higher margin segment with growing demand. Revenue contribution is increasing as a percentage of total diagnostics revenue.
- COVID-19 Testing: During the COVID-19 pandemic, Labcorp provided PCR and antibody testing. Competitors include Quest Diagnostics and various smaller labs. Revenue from COVID-19 testing significantly impacted overall financials during the pandemic period and has since decreased as the pandemic has waned. However, testing for new variants is important.
Market Dynamics
Industry Overview
The clinical laboratory services industry is characterized by increasing demand for diagnostic testing, driven by an aging population, rising prevalence of chronic diseases, and advancements in personalized medicine. It is a fragmented market with both large national players and numerous regional and local labs.
Positioning
Labcorp is one of the largest clinical laboratory service providers in the U.S., with a strong brand reputation, extensive network of labs, and a comprehensive test menu. Its competitive advantages include its scale, technological capabilities, and relationships with healthcare providers.
Total Addressable Market (TAM)
The global clinical laboratory services market is projected to reach over $200 billion. Labcorp, with its significant market share, is well-positioned to capture a substantial portion of this TAM through organic growth, acquisitions, and expansion of its service offerings.
Upturn SWOT Analysis
Strengths
- Extensive network of laboratories and patient service centers
- Comprehensive test menu
- Strong brand reputation
- Advanced technology and automation
- Established relationships with healthcare providers
Weaknesses
- Dependence on reimbursement rates from government and private payers
- Exposure to regulatory changes
- Competition from other large and smaller labs
- Potential for errors in testing or reporting
- High operating costs
Opportunities
- Expanding into emerging markets
- Developing new diagnostic tests
- Acquiring smaller laboratories
- Leveraging data analytics to improve patient care
- Collaborating with pharmaceutical and biotechnology companies
Threats
- Declining reimbursement rates
- Increased competition
- Technological advancements that could disrupt the industry
- Economic downturns
- Cybersecurity risks
Competitors and Market Share
Key Competitors
- Quest Diagnostics (DGX)
Competitive Landscape
Labcorp and Quest Diagnostics are the two largest players in the U.S. clinical laboratory services market. Labcorp differentiates itself through its comprehensive test menu, advanced technology, and strong relationships with healthcare providers.
Major Acquisitions
Personal Genome Diagnostics Inc.
- Year: 2022
- Acquisition Price (USD millions): 575
- Strategic Rationale: Expands Labcorp's oncology testing capabilities.
Growth Trajectory and Initiatives
Historical Growth: Labcorp has experienced significant growth through acquisitions and organic growth, particularly during the COVID-19 pandemic.
Future Projections: Future growth is expected to be driven by increasing demand for diagnostic testing, expansion into new markets, and the development of new tests. Analyst estimates suggest continued moderate revenue growth.
Recent Initiatives: Recent initiatives include investments in technology and automation, expansion of its test menu, and strategic acquisitions of regional labs. Focus on strategic growth of core diagnostics business post Fortrea spinoff.
Summary
Labcorp is a strong player in the diagnostics industry, benefiting from its scale and diverse testing capabilities. Its growth strategy revolves around organic initiatives and acquisitions. The spin off of Fortrea allows focus on the core diagnostics market. Key risks include reimbursement pressures and competition.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Investor Presentations
- Analyst Reports
- Industry Reports
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual research and consultation with a financial advisor. Market share data is estimated.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Laboratory Corporation of America Holdings
Exchange NYSE | Headquaters Burlington, NC, United States | ||
IPO Launch date 1990-03-29 | President, CEO & Chairman Mr. Adam H. Schechter | ||
Sector Healthcare | Industry Diagnostics & Research | Full time employees 70000 | Website https://www.labcorp.com |
Full time employees 70000 | Website https://www.labcorp.com |
Labcorp Holdings Inc. provides laboratory services. It operates through two segments, Diagnostics Laboratories and Biopharma Laboratory Services. The company offers various tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid, PAP, hemoglobin A1C, prostate-specific antigens, sexually transmitted diseases, hepatitis C, vitamin D, microbiology cultures and procedures, and alcohol and other substance-abuse tests. It also provides specialty testing services comprising gene-based and esoteric testing; advanced tests target specific diseases; services related to anatomic pathology/oncology, cardiovascular disease, coagulation, diagnostic genetics, endocrinology, infectious disease, women's health, pharmacogenetics, parentage and donor testing, occupational testing services, medical drug monitoring services, chronic disease programs, and kidney stone prevention tests; and health and wellness services to employers and managed care organizations (MCOs). In addition, the company offers online and mobile applications that enable patients to check offerings, schedule PSC visits, check-in upon PSC arrival, complete documentation, access tests and test results, and manage their accounts; online applications for providers, MCOs, and accountable care organizations; specimen collection services; and drug development, medical device, and companion diagnostic development solutions, as well as support for crop protection and chemical testing. It serves pharmaceutical, biotechnology, medical device, and diagnostics companies; and MCOs, employer plans, other health insurance providers, governments, physician, large provider organizations, other healthcare providers, hospitals and health systems, patients and consumers, crop protection and chemical companies, academic institutions, independent clinical laboratories, and retailers. The company was founded in 1995 is headquartered in Burlington, North Carolina.

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