This story originally appeared on Zacks
LabCorp (LH) closed the last trading day at $276.08, up -0.62% from the previous trading session. This change delayed the S&P 500’s gains by 0.08% on the day. Meanwhile, the Dow Jones lost 0.56%, and the tech-heavy Nasdaq lost 0.42%.
Before today’s trading, shares of the medical laboratory operator have lost 10.42% over the past month. This pulled the medical sector’s loss down 4.1% and the S&P 500’s gain by 0.22% in that time.
LabCorp will look to show strength as it approaches its next earnings release, which is expected to be February 10, 2022. On that day, LabCorp is expected to report earnings of $5.83 per share, which is a year-over-year decline of 44.79%. Meanwhile, our latest consensus estimate calls for revenue of $3.9 billion, down 13.16% from the prior year quarter.
Investors should also note any recent changes to LabCorp’s analyst estimates. These reviews usually reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive rating reviews as a good sign of the company’s business outlook.
Our research shows that these discretionary changes are directly correlated with near-term stock prices. Investors can take advantage of this using Zacks Rank. This model takes into account these changes in grading and provides a simple and actionable rating system.
Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperforming, with the #1 stock returning an average of +25% per year since 1988. In the past 30 days, Our consolidated EPS estimate is up 6.08%. LabCorp is currently rated by Zacks #1 (strong buy).
Investors should also note LabCorp’s current valuation metrics, including a forward price-to-earnings ratio of 14.96. Its industry has an average P/E forward of 19.85, so one might conclude that LabCorp is trading at a relatively discount.
Meanwhile, LH’s price-to-price ratio is currently 1.42. This metric is used similarly to the popular P/E ratio, but the PEG ratio also takes into account the expected earnings growth rate for a stock. The Dental Supplies segment averaged 1.58 as of yesterday’s close.
The dental supplies industry is part of the medical sector. This group has a Zacks Industry Rating of 73, placing it in the top 29% of all 250+ industries.
Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.
You can find more information about all of these metrics and more at Zacks.com.
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