Home Sectors Healthcare Recent Movement: Laboratory Corporation Of America (NYSE: LH)

Recent Movement: Laboratory Corporation Of America (NYSE: LH)

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Laboratory Corporation Of America trades as part of the healthcare sector and trades as part of the medical diagnostics and research industry. The company CEO is David P. King. Laboratory Corp of America is a healthcare diagnostics company. It is engaged in providing comprehensive clinical laboratory and end-to-end drug development services. It operates in two segments: LabCorp Diagnostics and Covance Drug Development.

Previous Intraday Trading Performance:

The LH stock showed a previous change of -1.78% with an open at 146.49 and a close of 144.83. It reached an intraday high of 147.00 and a low of 142.58.

SeekingAlpha:  Laboratory Corporation of America Holdings (LH) CEO David King on Q4 2018 Results – Earnings Call Transcript

Liquidity:

The stock has a market cap of $14.6b with 100.9m shares outstanding, of which the float is 99.9m shares. Trading volume reached 1,094,565 shares compared to its average volume of 962,522 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Laboratory Corporation Of America shares returned 2.74% and in the past 30 trading days it returned 16.24%. Over three months, it changed -8.40%. In one year it has changed -18.69% and within that year its 52-week high was 190.36 and its 52-week low was 119.38. LH stock is 21.32% above its 52 Week Low.

Our calculations show a 200 day moving average of 165.52 and a 50 day moving average of 137.23. Currently LH stock is trading -12.50% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  LabCorp Q4 top line up 2%

Earnings:

The last annual fiscal EPS for the company was reported at 12.2 that ended on 31st of December 2018, which according to the previous close, that is a PE of 11.87. Based on 10 analyst estimates, the consensus EPS for the next quarter is 2.48. The TTM EPS is 11.02, which comes to a TTM PE of 13.14. Historically, the PE high was 33.30 and the PE low was 11.87. If the stock reached its PE low, that would represent a price of 130.85, which is a decrease of -9.66%.

The following are the last four quarter reported earnings per share:
12-31-2018:  2.52
09-30-2018:  2.74
06-30-2018:  2.98
03-31-2018:  2.78

Base on our calculations, the intrinsic value per share is 172.53, which means it is possibly undervalued and has a margin of safety of 16.05%

Indicators to Watch:

Based on the latest filings, there is 0.90% of insider ownership and 133.40% of institutional ownership. Short-interest is 2,121,516, which is 2.10% of shares outstanding. The short-interest ratio or days-to-cover ratio is 1.94. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.14

SeekingAlpha:  Laboratory Corporation of America beats by $0.03, revenue in-line

Fundamental Indicators:

Based on last reported financials, the company’s return on assets is 5.33%, profit margin is 7.80%, price-to-sales is 1.31 and price-to-book is 2.02.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 3  :Past Performance Score
 4  :Financial Strength Score
 1  :Future Growth Score
 0  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.