Labcorp Holdings, Inc. (NYSE: LH) or Labcorp benefits from the solid execution of its strategic priorities. Investment in targeted high-growth areas should drive the momentum. The company faces headwinds from macroeconomic uncertainties and growing foreign exchange issues. The stock carries a Zacks Rank #3 (Hold) currently.
Factors Driving LH Stock
LabCorp is well-placed for long-term success in Cell & Gene Therapy, expanding into the consumer market and international growth through the specialty testing and biopharma business. In June 2024, Labcorp Tissue Complete comprehensive genomic profiling (CGP) service was availed in Geneva and Shanghai to support global clinical trials. The integration of OmniSeq INSIGHT circulating tumor DNA expanded Labcorp's leadership in liquid biopsy comprehensive genomic profiling for solid tumors.
LabCorp's Biopharma business is benefiting from collaborations with leading pharmaceutical and biotechnology companies with whom it started to work on potential antivirals, treatments and vaccines. Revenue-wise, Biopharma's growth continues to be driven by strength in central laboratories, its largest part, which improved by 9% in the second quarter of 2024. The Early Development business is also recovering sequentially, led by reduced cancellations and booking improvement, and is expected to generate higher revenues in the second half of the year.
Labcorp has been focused on expanding its margins though the LaunchPad initiative. The company's 2024-2026 guidance includes a savings target range of $100 million-$125 million annually. The benefits will be driven by rationalizing the geographic location of facilities and talent, leveraging technological ...
