Labcorp Holdings Inc. (NYSE: LH - Get Free Report) shares gapped down prior to trading on Tuesday. The stock had previously closed at $320.99, but opened at $303.46. Labcorp shares last traded at $313.95, with a volume of 129,255 shares traded. Trending Headlines about Labcorp Here are the key news stories impacting Labcorp this week:
HCA Healthcare (NYSE: HCA - Get Free Report) and Labcorp (NYSE: LH - Get Free Report) are both large-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership. Dividends HCA Healthcare pays an annual dividend of
Labcorp shares dropped sharply after CMS released preliminary 2027 lab-payment rates, aligning Medicare rates closer to private insurers and targeting $1B annual savings. I see the selloff as overdone, with market fears exaggerated by a misunderstanding of the CMS report's impact on LH's bottom line. The proposed cuts only affect Medicare's Clinical Laboratory Fee Schedule, with annual reimbursement reductions capped at 15% and final rates pending.
Labcorp Holdings Inc. is upgraded to Buy, supported by resilient demand for diagnostics and robust Q2 results, despite upcoming Medicare rate cuts. LH outperformed both the S&P 500 and healthcare peers YTD, with strong technical support and positive operating margins. Revenue durability, new test launches, and a diversified biopharma segment bolster LH's growth and risk profile amid regulatory headwinds.
Medicare and Medicaid have been overpaying Labcorp for years, says the government. Starting next year, they plan to cut reimbursement of lab testing by 15%.