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

Labcorp Holdings (LH), a leading healthcare diagnostics and drug development company, is identified as a strong investment prospect, holding a Zacks #2 (Buy) Rank and top-tier VGM Score of A, alongside a Momentum Style Score of B. The company's fiscal 2025 earnings estimates have seen two recent upward revisions, settling at a Zacks Consensus Estimate of $16.30 per share, and it boasts an average earnings surprise of +2.5%. With shares up 0.5% over the past four weeks, LH's robust ratings and positive analyst sentiment position it as a notable stock for investors.

Analysis

Labcorp Holdings (LH), a leading healthcare diagnostics and drug development firm, currently holds a Zacks #2 (Buy) Rank, indicating strong potential. The company also boasts a top-tier VGM Score of A and a favorable Momentum Style Score of B, aligning with its recent share price increase of 0.5% over the past four weeks. These metrics collectively suggest robust fundamental and technical strength.

Analyst sentiment for LH is notably positive, with two analysts revising fiscal 2025 earnings estimates upwards within the last 60 days. The Zacks Consensus Estimate for FY2025 earnings per share stands at $16.30, supported by the company's consistent average earnings surprise of +2.5%. This upward revision trend and historical outperformance against estimates underscore a positive earnings trajectory.

Labcorp's strategic positioning as a leader in clinical laboratory services and end-to-end drug development, bolstered by its 2015 acquisition of Covance, provides a stable foundation. The combination of a strong Zacks Rank, high Style Scores, and positive analyst revisions positions LH as a compelling consideration for investors seeking companies with favorable momentum and fundamental support in the healthcare sector.

Key Decisions for Investors

• Consider initiating or increasing exposure to LH given its Zacks #2 (Buy) Rank, strong VGM Score of A, and positive analyst revisions for fiscal 2025 earnings.
• Monitor future earnings reports for continued positive surprises and further upward revisions, as the company has a history of beating estimates by an average of +2.5%.
• Evaluate LH's performance within the broader healthcare diagnostics and drug development sector, leveraging its strong momentum and fundamental scores as a potential outperformer.