Stock of the Day

April 17, 2020

Laboratory Co. of America (LH)

$249.86
+$0.69 (+0.3%)
Market Cap: $20.84B

About Laboratory Co. of America

Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.

Laboratory Co. of America Bull Case

Here are some ways that investors could benefit from investing in Laboratory Co. of America Holdings:

  • The stock is currently trading at $247.79, showing a positive trend in recent trading sessions, which may indicate investor confidence and potential for growth.
  • Laboratory Co. of America Holdings has received multiple upgrades from analysts, with a consensus rating of "Moderate Buy" and an average target price of $265.31, suggesting potential upside in the stock price.
  • The company reported earnings per share (EPS) of $3.45, exceeding the consensus estimate, which reflects strong financial performance and operational efficiency.
  • Insider trading activity shows that executives have been selling shares, which can indicate confidence in the company's future performance, although it is important to monitor the volume of sales.
  • The company has a solid market capitalization of $20.73 billion, indicating a stable financial foundation and the ability to invest in growth opportunities.

Laboratory Co. of America Bear Case

Investors should be bearish about investing in Laboratory Co. of America Holdings for these reasons:

  • Insiders have sold a total of 24,504 shares worth $5,905,692 in the last ninety days, which may raise concerns about the company's future prospects and insider confidence.
  • The stock has a relatively high price-to-earnings (P/E) ratio of 28.09, which could suggest that the stock is overvalued compared to its earnings, making it a riskier investment.
  • Analysts have mixed opinions, with three rating the stock as a hold, indicating that some believe the stock may not have significant growth potential in the near term.
  • The company has a debt-to-equity ratio of 0.67, which, while manageable, indicates that it is using some leverage to finance its operations, potentially increasing financial risk.
  • Recent price target adjustments by analysts, such as Barclays lowering their target from $271.00 to $260.00, may signal a lack of confidence in the stock's short-term performance.

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