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LabCorp (LH) Gains But Lags Market: What You Should Know
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LabCorp (LH - Free Report) closed the most recent trading day at $273.18, moving +0.08% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.94%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq lost 0.55%.
Prior to today's trading, shares of the medical laboratory operator had lost 5.94% over the past month. This has was narrower than the Medical sector's loss of 7.9% and lagged the S&P 500's loss of 4.63% in that time.
LabCorp will be looking to display strength as it nears its next earnings release, which is expected to be February 10, 2022. On that day, LabCorp is projected to report earnings of $5.81 per share, which would represent a year-over-year decline of 44.98%. Meanwhile, our latest consensus estimate is calling for revenue of $3.9 billion, down 13.16% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for LabCorp. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.61% higher. LabCorp is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, LabCorp is currently trading at a Forward P/E ratio of 14.77. For comparison, its industry has an average Forward P/E of 19.36, which means LabCorp is trading at a discount to the group.
Also, we should mention that LH has a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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LabCorp (LH) Gains But Lags Market: What You Should Know
LabCorp (LH - Free Report) closed the most recent trading day at $273.18, moving +0.08% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.94%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq lost 0.55%.
Prior to today's trading, shares of the medical laboratory operator had lost 5.94% over the past month. This has was narrower than the Medical sector's loss of 7.9% and lagged the S&P 500's loss of 4.63% in that time.
LabCorp will be looking to display strength as it nears its next earnings release, which is expected to be February 10, 2022. On that day, LabCorp is projected to report earnings of $5.81 per share, which would represent a year-over-year decline of 44.98%. Meanwhile, our latest consensus estimate is calling for revenue of $3.9 billion, down 13.16% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for LabCorp. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.61% higher. LabCorp is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, LabCorp is currently trading at a Forward P/E ratio of 14.77. For comparison, its industry has an average Forward P/E of 19.36, which means LabCorp is trading at a discount to the group.
Also, we should mention that LH has a PEG ratio of 1.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 1.61 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.