Laboratory Stock Buy Hold or Sell Recommendation

LH -  USA Stock  

USD 283.77  2.67  0.95%

Allowing for the 90-day total investment horizon and your above-average risk tolerance, our recommendation regarding Laboratory Corp is 'Strong Buy'. Macroaxis provides Laboratory Corp buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding LH positions. The advice algorithm takes into account all of Laboratory Corp's available fundamental, technical, and predictive indicators you will find on this site.

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The advice is provided from Laboratory Corp's buy-and-hold perspective. Additionally, see Laboratory Corp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Laboratory and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Laboratory Corp.

Execute Laboratory Corp Buy or Sell Advice

The Laboratory recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Laboratory Corp. Macroaxis does not own or have any residual interests in Laboratory Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Laboratory Corp's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Laboratory CorpBuy Laboratory Corp
Strong Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

AdequateDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Laboratory Corp has a Risk Adjusted Performance of 0.0939, Jensen Alpha of 0.1031, Total Risk Alpha of 0.0727, Sortino Ratio of 0.0741 and Treynor Ratio of 0.2311
Macroaxis provides trade recommendations on Laboratory Corp to complement and cross-verify current analyst consensus on Laboratory Corp. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Laboratory Corp is not overpriced, please verify all Laboratory Corp fundamentals, including its gross profit, book value per share, and the relationship between the price to earning and cash per share . Given that Laboratory Corp has a price to earning of 10.22 X, we recommend you to check Laboratory Corp market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Laboratory Corp Trading Alerts and Improvement Suggestions

Laboratory Corp is unlikely to experience financial distress in the next 2 years
Over 94.0% of the company shares are owned by institutional investors
Latest headline from www.marketwatch.com: DaVita Inc. stock underperforms Monday when compared to competitors despite daily gains - MarketWatch

Laboratory Corp current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Laboratory analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Laboratory analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price305.92
Target Median Price310.00
Target High Price339.00
Recommendation Mean1.70
Number Of Analyst Opinions12
Target Low Price273.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Laboratory Corp Returns Distribution Density

The distribution of Laboratory Corp's historical returns is an attempt to chart the future uncertainty of Laboratory Corp's future price movements. The chart of the probability distribution of Laboratory Corp stock daily returns describes the distribution of returns around its average expected value. We use Laboratory Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Laboratory Corp returns is essential to provide solid investment advice for Laboratory Corp stock.
Mean Return0.13Value At Risk-1.52
Potential Upside1.71Standard Deviation1.07
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Laboratory Corp historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Laboratory Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Laboratory Corp is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Laboratory Corp backward and forwards among themselves. Laboratory Corp's institutional investor refers to the entity that pools money to purchase Laboratory Corp's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Nordea Investment Management AbCommon Shares1.2 M340 M
Assenagon Asset Management SaCommon Shares423.1 K116.7 M
Ami Asset Management CorpCommon Shares188 K51.9 M
Bartlett Co LlcCommon Shares171.4 K47.3 M
New York State Teachers Retirement SystemCommon Shares117.1 K32.3 M
Wedge Capital Management L L PCommon Shares116.8 K32.2 M
Dnb Asset Management AsCommon Shares100.9 K27.8 M
Note, although Laboratory Corp's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Laboratory Corp Cash Flow Accounts

201620172018201920202021 (projected)
Capital Expenditure(278.9 M)(312.9 M)(379.8 M)(400.2 M)(381.7 M)(411.83 M)
Depreciation Amortization and Accretion499.2 M533.2 M552.1 M771.3 M825 M685.74 M
Net Cash Flow or Change in Cash and Cash Equivalents(282.8 M)(116.9 M)110.2 M(89.3 M)983.3 M1.06 B
Net Cash Flow Business Acquisitions and Disposals(548.6 M)(1.88 B)540.4 M(876 M)(267.6 M)(288.73 M)
Issuance Purchase of Equity Shares(7.9 M)(311.9 M)(678.9 M)(425.9 M)(78.6 M)(84.81 M)
Issuance Repayment of Debt Securities(653.4 M)941.6 M(695 M)198.5 M(412.2 M)(423.05 M)
Net Cash Flow from Financing(671 M)593.2 M(1.39 B)(252.7 M)(517.4 M)(531.02 M)
Net Cash Flow from Investing(795.7 M)(2.23 B)206.7 M(1.28 B)(643.2 M)(693.98 M)
Net Cash Flow from Operations1.2 B1.5 B1.31 B1.44 B2.14 B1.79 B
Effect of Exchange Rate Changes on Cash(13.2 M)20.5 M(12 M)1.8 M8.6 M9.28 M
Share Based Compensation109.6 M109.7 M91.6 M107 M111.7 M103.23 M

Laboratory Corp Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Laboratory Corp or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Laboratory Corp stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Laboratory stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.10
β
Beta against DOW0.52
σ
Overall volatility
1.08
Ir
Information ratio 0.08

Laboratory Corp Volatility Alert

Laboratory Corp has relatively low volatility with skewness of -0.86 and kurtosis of 2.46. However, we advise all investors to independently investigate Laboratory Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Laboratory Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Laboratory Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Laboratory Corp Fundamentals Vs Peers

Comparing Laboratory Corp's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Laboratory Corp's direct or indirect competition across all of the common fundamentals between Laboratory Corp and the related equities. This way, we can detect undervalued stocks with similar characteristics as Laboratory Corp or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Laboratory Corp's fundamental indicators could also be used in its relative valuation, which is a method of valuing Laboratory Corp by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Laboratory Corp to competition
FundamentalsLaboratory CorpPeer Average
Return On Equity30.96 %(0.31) %
Return On Asset13.01 %(0.14) %
Profit Margin17.26 %(1.27) %
Operating Margin28.97 %(5.51) %
Current Valuation31.5 B16.62 B
Shares Outstanding97.7 M571.82 M
Shares Owned by Insiders0.59 %10.09 %
Shares Owned by Institutions93.58 %39.21 %
Number of Shares Shorted1.69 M4.71 M
Price to Earning10.22 X28.72 X
Price to Book2.68 X9.51 X
Price to Sales1.75 X11.42 X
Revenue15.32 B9.43 B
Gross Profit5.01 B27.38 B
EBITDA4.44 B3.9 B
Net Income2.64 B570.98 M
Cash and Equivalents1.89 B2.7 B
Cash per Share19.35 X5.01 X
Total Debt6.36 B5.32 B
Debt to Equity0.63 %48.70 %
Current Ratio1.67 X2.16 X
Book Value Per Share102.47 X1.93 K
Cash Flow from Operations3.09 B971.22 M
Short Ratio2.34 X4.00 X
Earnings Per Share26.89 X3.12 X
Price to Earnings To Growth(1.12) X4.89 X
Number of Employees70 K18.84 K
Beta1.05-0.15
Market Capitalization26.85 B19.03 B
Total Asset2.58 B29.47 B
Retained Earnings6.83 B9.33 B
Working Capital358.7 M1.48 B
Current Asset585.1 M9.34 B
   Exercise or conversion by Van Der Vaart Sandra D of 4500 shares of Laboratory Corp subject to Rule 16b-3 [view details]

About Laboratory Corp Buy or Sell Advice

When is the right time to buy or sell Laboratory Corp? Buying financial instruments such as Laboratory Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Laboratory Corp investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2018 2019 2020 2021 (projected)
Receivables1.47 B1.54 B2.48 B2.68 B
Inventories237.3 M244.7 M423.2 M456.61 M

Use Investing Ideas to Build Portfolios

In addition to having Laboratory Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Recreation
Recreation Theme
Fama and French focuses on testing asset pricing under different economic assumptions. Recreation theme has 18 constituents.
View All  Next Launch Recreation
Additionally, see Laboratory Corp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Laboratory Corp information on this page should be used as a complementary analysis to other Laboratory Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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The market value of Laboratory Corp is measured differently than its book value, which is the value of Laboratory that is recorded on the company's balance sheet. Investors also form their own opinion of Laboratory Corp's value that differs from its market value or its book value, called intrinsic value, which is Laboratory Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Laboratory Corp's market value can be influenced by many factors that don't directly affect Laboratory Corp underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Laboratory Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Laboratory Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Laboratory Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.