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LabCorp (LH) Dips More Than Broader Markets: What You Should Know

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LabCorp (LH - Free Report) closed the most recent trading day at $263.66, moving -1.99% from the previous trading session. This move lagged the S&P 500's daily loss of 1.57%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 0.09%.

Heading into today, shares of the medical laboratory operator had lost 0.53% over the past month, lagging the Medical sector's gain of 5.64% and the S&P 500's gain of 5.37% in that time.

Wall Street will be looking for positivity from LabCorp as it approaches its next earnings report date. This is expected to be April 28, 2022. On that day, LabCorp is projected to report earnings of $5.87 per share, which would represent a year-over-year decline of 33.22%. Our most recent consensus estimate is calling for quarterly revenue of $4.06 billion, down 2.48% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $19.38 per share and revenue of $15.42 billion. These totals would mark changes of -32.05% and -4.37%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for LabCorp. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.8% lower. LabCorp currently has a Zacks Rank of #3 (Hold).

Digging into valuation, LabCorp currently has a Forward P/E ratio of 13.88. This valuation marks a discount compared to its industry's average Forward P/E of 20.9.

The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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