LH

Laboratory Corporation of America Holdings

Healthcare


Presented:01/23/2015
Price:$117.29
Cap:$9.91B
Current Price:$216.68
Cap:$18.19B

Presented

Date01/23/2015
Price$117.29
Market Cap$9.91B
Ent Value$12.37B
P/E Ratio19.4x
Book Value$32.64
Div YieldN/A
Shares O/S84.50M
Ave Daily Vol1,520,000
Short Int10.69%

Current

Price$216.68
Market Cap$18.19B
Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide. It offers a range of clinical laboratory tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, Pap tests, hemoglobin A1C, PSA, STD tests, HCV tests, microbiology cultures and procedures, and alcohol and other substance-abuse tests. The company provides testing services that are used by the medical profession in core testing, patient diagnosis, and in the monitoring and treatment of diseases. It also offers specialty testing services in the areas of allergy, clinical trials, diagnostic genetics, women's health, cardiovascular disease, identity, forensics, infectious disease, endocrine sciences, oncology, occupational testing, and pain management. The company provides its services through a sales force to the physicians, hospitals, managed care organizations, governmental agencies, employers, pharmaceutical companies, and other independent clinical laboratories. It operates a national network of 44 primary laboratories and approximately 1,700 patient service centers, as well as branches and STAT laboratories. Laboratory Corporation of America Holdings has collaboration with university, hospital and academic institutions, such as Duke University, The Johns Hopkins University, the University of Minnesota, and Yale University to license and commercialize new diagnostic tests. The company was founded in 1971 and is headquartered in Burlington, North Carolina.

Publicly traded companies mentioned herein: Covance Inc (CVD), Eli Lilly and Company (LLY), Laboratory Corp of America Holdings (LH), Quest Diagnostics Inc (DGX)

Highlights

The presenter is long shares of LabCorp (LH) and believes the Street is failing to fully recognize the impact a positive business inflection, cost cuts and the Covance acquisition could have on future earnings. At ~$117, he thinks the risk/ reward is favorable and estimates 25-30% upside potential vs. just 10% downside risk.

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Idea Discussion

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