Why Labcorp Holdings (LH) is a Top Growth Stock for the Long-Term

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Headquartered in Burlington, NC, Labcorp Holdings, Inc. or Labcorp, is a leading healthcare diagnostics company, providing comprehensive clinical laboratory services and end-to-end drug development support. In 2015, Labcorp acquired NJ based Covance, a drug development services company providing a wide range of early stage and late-stage product development services on a worldwide basis primarily to the pharmaceutical and biotechnology industries.

LH sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of A, and has a VGM Score of A. Earnings and sales are forecasted to increase 11.9% and 7.7% year-over-year, respectively.

Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.25 to $16.30 per share. LH also boasts an average earnings surprise of 2.5%.

Looking at cash flow, Labcorp Holdings is expected to report cash flow growth of 8.6% this year; LH has generated cash flow growth of 2% over the past three to five years.

Investors should take the time to consider LH for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.

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Labcorp Holdings Inc. (LH) : Free Stock Analysis Report

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

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