Laboratory Corporation of America Holdings (NYSE:LH) Relative Strength Index (RSI) is 61.23, with weekly volatility at 1.57% and ATR at 5.20. The LH stock’s 52-week price range has touched low of $155.65 and a $280.69 high. Intraday shares traded counted 0.85 million, which was -34.13% lower than its 30-day average trading volume of 633.42K. Its shares traded higher over the last trading session, gaining 1.17% on 05/25/21. The shares fell to a low of $272.335 before closing at $274.45. LH’s previous close was $271.27 while the outstanding shares total 98.50M. The firm has a beta of 1.04, a 12-month trailing P/E ratio of 10.20.
Investors have identified the Diagnostics & Research company Laboratory Corporation of America Holdings as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $26.87 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Laboratory Corporation of America Holdings (LH) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 5.64 billion total, with 3.37 billion as their total liabilities.
LH were able to record 1.06 billion as free cash flow during the 07/28/2021 quarter of the year, this saw their quarterly net cash flow reduce by 570.0 million. In cash movements, the company had a total of 1.16 billion as operating cash flow.
Potential earnings growth for Laboratory Corporation of America Holdings (LH)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/28/2021 quarter of the year, Laboratory Corporation of America Holdings recorded a total of 4.16 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 32.14% coming in sequential stages and their sales for the 07/28/2021 quarter reducing by -7.89%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 2.56 billion trying to sell their products during the last quarter, with the result yielding a gross income of 1.6 billion. This allows shareholders to hold on to 98.50M with the recently reported earning now reading 7.89 cents per share. This is a figure that compared to analyst’s prediction for their 07/28/2021 (8.79 cents a share).
Having a look at the company’s valuation, the company is expected to record 15.86 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on LH sounds very interesting.
Is the stock of LH attractive?
In related news, CEO, Covance Drug Development, Kirchgraber Paul R sold 2,500 shares of the company’s stock in a transaction that recorded on May 06. The sale was performed at an average price of 276.55, for a total value of 691,375. As the sale deal closes, the Director, BELINGARD JEAN-LUC now sold 2,600 shares of the company’s stock, valued at 699,803. Also, EVP, Chief Legal Officer, van der Vaart Sandra D sold 812 shares of the company’s stock in a deal that was recorded on Mar 30. The shares were price at an average price of 251.88 per share, with a total market value of 204,527. Following this completion of acquisition, the EVP, President-Diagnostics Lab, Schroeder Mark S now holds 667 shares of the company’s stock, valued at 168,004. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
15 out of 19 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on Laboratory Corporation of America Holdings. 0 analysts has assigned a Sell rating on the LH stock. The 12-month mean consensus price target for the company’s shares has been set at $299.15.