Chart of the Day: LabCorp Isn't Passing the Growth Test Yet
The stock has made little progress to the upside since late 2024, despite strong earnings.
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It is frustrating to be in a growth name like LabCorp LH when you realize the stock is not growing alongside the company's earnings.
Since early November, the stock has gone nowhere, closing on Nov. 5 just two dollars lower than current levels. Mind you, the stock market is not on fire, either, but we should have expected this stock to trade at higher levels. After all, the relative strength in LH has been much better than the rest of the stock market over a longer period of time.
We see potential here for the stock to retreat back the lower end of the range, which is about the $210-$220 level. That might be a good spot to add more shares, we'll keep an eye on that area of interest.
As for the indicators, all of them have started to roll over, namely the Moving Average Convergence Divergence, in the second pane, which had been leading the stock for some time. This indicator tells us a change in trajectory of the stock before it happens, and a crossover signal right now is telling us that change is to the downside.
Money flow has turned down, as seen in the last pane; momentum is lower as well with stochastics, as seen in the second to last pane, coming down from the highs. Price is still cautiously bullish with teal-colored candles (GoNoGo composite of indcators in the top pane).
We like LabCorp in TheStreet Pro Portfolio and rate it a "Two," or stockpile on pullbacks.
The Pro Portfolio is long LabCorp.
