Labcorp Holdings Inc. LH
Labcorp's fundamental recovery is genuine — FY2025 revenue grew 7.25% to $13.95B with operating margin expanding from 8.35% to 10.87% and EPS up 18.33% to $10.46, while the stock trades at a 14.6% P/E discount and 17.7% EV/EBITDA discount to peer medians. However, with RSI at 72.68, the stock at $330.44 trading 14% above its 50-day MA of $289.67, and the CEO and multiple executives selling shares in August 2026 at $306–$320, the technical setup is overbought and insider behavior is a caution flag.
The September 10 Investor Day could re-rate the stock, but entering at a 52-week high with bearish MACD histogram crossover and a smart money score that flipped to -0.0175 as of Q2 2026 argues for patience.
What could go wrong
- Overbought technicals. RSI at 72.68 and stock trading 22% above the 200-day MA of $271.08 as of 2026-08-19; a momentum unwind could deliver a sharp pullback.
- Insider selling acceleration. CEO Schechter sold 4,669 shares at $320.37 on Aug 11, with additional sales by the CMO, CAO, and EVP Diagnostics in August 2026; 24-month net insider value is -$18M.
- Smart money deterioration. Smart money score declined from +0.0875 in Q1 2026 to -0.0175 in Q2 2026, suggesting institutional positioning has turned slightly cautious.
- Leverage and margin compression risk. Total debt of $7.2B against equity of $8.6B at FY2025, with gross margin declining from 27.86% in 2024 to 26.75% in 2025; cost pressure could stall operating margin recovery.
What would change my mind
Where this comes from: FMP annual fundamentals FY2025 + derived_metrics · Technicals as of 2026-08-19 · peer_relative composite · Insider transactions + summary. Orin's read on LH; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All LH filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Capital Management | $1.5B | 0.0% of fund |
| State Street | $1.1B | 0.0% of fund |
| Vanguard Portfolio Management | $1.0B | 0.0% of fund |
| Geode Capital Management | $610.4M | 0.0% of fund |
| Select Equity Group, L.P | $554.9M | 2.7% of fund |
| Fmr | $533.4M | 0.0% of fund |
87 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 261 Form 4 filings, net −$18.0M. Of the 50 on hand, 0 were open-market purchases and 11 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about LH
Orin answers questions about LH from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 25.0× | 23.8× | 26.4× |
| EV/EBITDA | 14.7× | 13.7× | — |
| P/S | 1.74× | 1.55× | — |
| P/B | 2.9× | 2.4× | — |
Its P/E sits 60th percentile of its own last 5 years (+0.04σ from its own mean).
8.2%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $1.2B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$341
$300 – $380 · +12% against today's price
- 26 buy or overweight
- 9 hold
- 0 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| LHLabcorp Holdings Inc. | $25B | 25.0× | 14.7× | 27.8% | 7.0% | 12% |
| BIIBBiogen Inc. | $34B | 40.1× | 24.4× | 67.7% | 8.4% | 5% |
| DGXQuest Diagnostics Incorporated | $26B | 24.4× | 15.7× | 33.1% | 9.2% | 14% |
| DXCMDexCom, Inc. | $33B | 33.9× | 21.4× | 62.5% | 20.1% | 36% |
| INCYIncyte Corporation | $25B | 15.3× | 10.4× | 92.6% | 27.7% | 30% |
| STESTERIS plc | $20B | 25.6× | 12.2× | 44.4% | 13.3% | 11% |
| WATWaters Corporation | $41B | 104.6× | 51.4× | 50.8% | 3.6% | 2% |
| WSTWest Pharmaceutical Services, Inc. | $26B | 47.8× | 32.0× | 36.8% | 17.0% | 19% |
| ZBHZimmer Biomet Holdings, Inc. | $18B | 22.0× | 12.6× | 69.9% | 9.5% | 6% |
The median is of the 8 peers listed above and nothing else — check it against the column. This company trades 16.0% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $379 | $271.19 · +40% | 2026-06-10 |
| Levered DCF | $407 | $271.19 · +50% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.