LH

Labcorp Holdings (LH), a leading healthcare diagnostics company, receives a #3 (Hold) rating on the Zacks Rank with a VGM Score of B. The company shows attractive valuation metrics with a forward P/E ratio of 16.84 and has seen three analyst upward earnings revisions in the last 60 days, with the consensus estimate increasing to $18.32 per share for fiscal 2026.

Labcorp Holdings is expanding its specialty testing business in oncology, women's health, autoimmune disease, and neurology through strategic acquisitions and partnerships. The company is leveraging AI and automation to improve margins, with operating margins expanding 70 basis points year-over-year. However, macroeconomic uncertainty, cost inflation, and changing reimbursement policies pose risks to testing volumes and profitability.