Home Sectors Healthcare Stock Under Review: Laboratory Corporation Of America (NYSE: LH)

Stock Under Review: Laboratory Corporation Of America (NYSE: LH)


Laboratory Corporation Of America is in 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 0.34% with an open at 166.55 and a close of 166.80. It reached an intraday high of 167.28 and a low of 165.38.

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The stock has a market cap of $16.4b with 98.5m shares outstanding, of which the float is 97.4m shares. Trading volume reached 644,400 shares compared to its average volume of 950,062 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 0.73% and in the past 30 trading days it returned 5.94%. Over three months, it changed 13.40%. In one year it has changed -4.90% and within that year its 52-week high was 190.36 and its 52-week low was 119.38. LH stock is 39.72% above its 52 Week Low.

Our calculations show a 200 day moving average of 156.52 and a 50 day moving average of 158.17. Currently LH stock is trading 6.56% above its 200 day moving average.

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The last annual fiscal EPS for the company was reported at 8.61 that ended on 31st of December 2018, which according to the previous close, that is a PE of 19.37. Based on 10 analyst estimates, the consensus EPS for the next quarter is 2.53. The TTM EPS is 11.02, which comes to a TTM PE of 15.14. Historically, the PE high was 33.30 and the PE low was 10.10. If the stock reached its PE low, that would represent a price of 111.27, which is a decrease of -33.29%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 1.86
4thQtr of 2018 1.56
3rdQtr of 2018 3.10
2ndQtr of 2018 2.27
1stQtr of 2018 1.67

Base on our calculations, the intrinsic value per share is 232.50, which means it is possibly undervalued and has a margin of safety of 28.26%.

Indicators to Watch:

Short-interest was 2,101,292, which was 2.13% of shares outstanding. The short-interest ratio or days-to-cover ratio was 3.26. 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 1.09.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 12.71%, return on assets is 5.30%, profit margin is 7.96%, price-to-sales is 1.45 and price-to-book is 2.31.

Company Scores:

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

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.