Yahoo Finance LabCorp (LH) Moves 4.9% Higher: Will This Strength Last?
LabCorp (LH) shares rallied 4.9% in the last trading session to close at $250.42. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.4% loss over the past four weeks.
The move came after LabCorp announced about undertaking a review of its structure and capital allocation strategy. This decision was based on the company’s deduction that its current valuation is not appropriately justified in the current stock price. The company has appointed Goldman Sachs & Co. LLC as its financial advisor to support the process.
Price and Consensus
This medical laboratory operator is expected to post quarterly earnings of $7.32 per share in its upcoming report, which represents a year-over-year change of +208.9%. Revenues are expected to be $3.88 billion, up 37.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For LabCorp, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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