|
|
|
|
|||||
|
|
|
Labcorp Holdings, Inc. LH has announced the nationwide launch of an FDA-approved human papillomavirus (HPV) self-collection solution that can help women and their physicians assess the risk of developing cervical cancer. Additionally, the company will offer a vaginal swab self-collect option for sexually transmitted infection (STI) testing.
Both solutions require a physician’s order and can be completed privately in a healthcare setting or at any one of Labcorp's 2,200 Patient Service Centers (PSCs) nationwide.
Following the announcement yesterday, Labcorp shares dipped slightly by 0.04%, finishing at $232.65. On a promising note, the company is taking steps to address barriers such as discomfort, stigma or time challenges, causing many patients to delay or avoid necessary health screenings, leading to health complications and further spreading of infections. By offering convenient access to essential tests and screenings, Labcorp is empowering individuals to take control of their health on their terms. We expect the market sentiment toward LH stock to remain positive surrounding this news.
Labcorp has a market capitalization of $19.48 billion. Going by the Zacks Consensus Estimate, the company’s earnings are expected to grow by 9.9% on a 7.1% improvement in revenues. In the trailing four quarters, it delivered an average earnings beat of 3.2%.
Labcorp’s chief medical and scientific officer voiced concerns over the alarmingly low screening rates for cervical cancer among U.S. women despite the disease being preventable. In the United States, more than 13,000 women annually are diagnosed with cervical cancer, with approximately 4,000 succumbing to the disease. HPV testing is a crucial tool for preventing cervical cancer through early intervention and treatment.
Image Source: Zacks Investment Research
Traditionally, cervical cancer screening involves a healthcare provider collecting a specimen during a Pap smear and forwarding it to a laboratory for testing. In 2024, the FDA approved self-collection tests for cervical cancer screenings. Labcorp’s new self-collection option provides an easily accessible and less invasive alternative, helping improve screening rates by easing the load on physicians and opening up additional access points to reach those who might avoid or not have access to traditional in-office exams.
Meanwhile, Labcorp will also offer a vaginal swab self-collect option for STI testing, including chlamydia, gonorrhea, trichomonas or mycoplasma genitalium (Mgen), empowering individuals to take control of their sexual health and speed up the diagnosis to treatment timeline. Early detection can potentially help reduce the long-term effects for patients and increase the effectiveness of treatment.
Per a research report, the global self-testing market was valued at $11.39 billion in 2024 and is likely to witness a compound annual rate of 8.4% through 2030. The increasing emphasis on personalized healthcare, technological advancements in rapid diagnostics and rising demand for convenient and rapid diagnostic kits are some of the key factors driving market growth.
In March, the company announced an agreement to acquire select assets of BioReference Health, a wholly owned subsidiary of OPKO Health. Through this transaction, Labcorp will purchase BioReference Health's laboratory testing businesses focused on oncology and oncology-related clinical testing services across the United States and also includes certain customer accounts and other operating assets.
In the past six months, Labcorp shares have rallied 8.2% compared with the industry’s 4.8% rise.
Labcorp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space include Hims & Hers Health HIMS, Boston Scientific BSX and Cardinal Health CAH. Each of these carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Hims & Hers Health’s 2025 earnings per share have remained constant at 63 cents in the past 30 days. Shares of the company have surged 100.2% in the past year against the industry’s 1.3% fall. Its earnings yield of 2.2% also outpaced the industry’s -7.3% yield. HIMS’ earnings surpassed estimates in two of the trailing four quarters, matched in one and missed on another occasion, the average surprise being 40.4%.
Boston Scientific shares have rallied 48.6% in the past year. Estimates for the company’s 2025 earnings per share have remained constant at $2.85 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 8.3%. In the last reported quarter, it posted an earnings surprise of 7.7%.
Estimates for Cardinal Health’s fiscal 2025 earnings per share have remained constant at $7.94 in the past 30 days. Shares of the company have jumped 23.6% in the past year against the industry’s 3% fall. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. In the last reported quarter, it delivered an earnings surprise of 10.3%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite