Labcorp Holdings Inc. (LH) Hit a 52 Week High, Can the Run Continue?

The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 30, 2026, Labcorp reported EPS of $4.25 versus consensus estimate of $4.09.

For the current fiscal year, Labcorp is expected to post earnings of $18 per share on $14.71 in revenues. This represents a 9.49% change in EPS on a 5.43% change in revenues. For the next fiscal year, the company is expected to earn $19.33 per share on $15.44 in revenues. This represents a year-over-year change of 7.36% and 4.99%, respectively.

Valuation Metrics

Labcorp may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Labcorp has a Value Score of B. The stock's Growth and Momentum Scores are B and C, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 16.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 16X. On a trailing cash flow basis, the stock currently trades at 11.7X versus its peer group's average of 10X. Additionally, the stock has a PEG ratio of 1.93. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Labcorp currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Labcorp passes the test. Thus, it seems as though Labcorp shares could have a bit more room to run in the near term.

How Does LH Stack Up to the Competition?

Shares of LH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Progyny, Inc. (PGNY). PGNY has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C.

Earnings were strong last quarter. Progyny, Inc. beat our consensus estimate by 13.64%, and for the current fiscal year, PGNY is expected to post earnings of $2.04 per share on revenue of $1.38 billion.

Shares of Progyny, Inc. have gained 12.1% over the past month, and currently trade at a forward P/E of 15.05X and a P/CF of 41.7X.

The Medical Services industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LH and PGNY, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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