Why Labcorp Holdings (LH) is a Top Growth Stock for the Long-Term

Zacks' investment methodology, which combines its proprietary Rank with complementary Style Scores, highlights Labcorp Holdings (LH) as a notable growth stock. Despite a Zacks Rank #3 (Hold), LH holds an 'A' rating for both Growth and VGM Style Scores, underpinned by an 11.9% forecasted year-over-year earnings growth for the current fiscal year. Analysts have recently revised fiscal 2025 earnings estimates upwards by $0.25 to $16.30 per share, coupled with a historical average earnings surprise of 2.5%, making LH a strong consideration for growth-focused investors.

Analysis

Labcorp Holdings (LH) presents a compelling growth profile supported by strong forward-looking metrics and positive analyst sentiment, despite a neutral Zacks Rank #3 (Hold) rating. The company is forecasted to achieve 11.9% year-over-year earnings growth for the current fiscal year, a key factor contributing to its top-tier 'A' grade for both its Growth and overall VGM Style Scores. This positive outlook is further substantiated by recent analyst activity, where eight analysts have revised their fiscal 2025 earnings estimates higher in the last 60 days. This has lifted the Zacks Consensus Estimate by $0.25 to $16.30 per share. The company's operational strength is also reflected in its history of delivering an average positive earnings surprise of 2.5%, indicating a consistent ability to exceed market expectations. The combination of a strong growth score and upward earnings revisions suggests that the stock's fundamental trajectory may be more positive than its neutral hold rating implies.

Key Decisions for Investors

• Growth-oriented investors should consider Labcorp's strong fundamental outlook, specifically its projected 11.9% earnings growth and positive analyst revisions, as a basis for potential inclusion in their portfolio.
• Given the stock's neutral #3 (Hold) rating, a key catalyst to monitor would be a potential upgrade to a #2 (Buy) or #1 (Strong Buy), which would signal strengthening conviction in its upward momentum.
• Investors should weigh the positive growth indicators against the neutral overall rating, potentially viewing LH as a stock with upside potential that requires monitoring for further confirmation, such as continued outperformance in upcoming earnings reports.