Keen Investors Taking a Look at Laboratory Corporation of America Holdings (NYSE:LH)

Smart investors are constantly on the lookout for a bargain when it comes to stock picking. As of late, investors have been taking a second look at shares of Laboratory Corporation of America Holdings (NYSE:LH). During recent trading, shares saw a move of -4.06% hitting a price of $152.61.

Investors are typically looking for any little advantage when it comes to the equity markets. Investors often have to figure out not only how certain companies are faring, but also how the overall global economic landscape is shaping up. Focusing in on the proper economic data can help detect overall trends in the economy. Investors who are able to hone their analytical skills might be able to put themselves in a much better position to achieve success. Being able to process and organize all of the different types of financial information that is constantly being thrown around may be a great asset to the individual trader and investor. The amount of information floating around in today’s investing climate is enormous. Zooming in on the most pertinent information can help keep things manageable.

After a recent check, shares of Laboratory Corporation of America Holdings (NYSE:LH) have been seen trading -4.87% off of the 50-day high and 9.30% away from the 50-day low. In terms of the stock price in relation to its moving averages, company shares are -2.02% away from the 20-day moving average and 1.06% off of the 50-day average. If we take a wider approach, shares have been trading -4.08% away from the 200-day moving average.

Over the last year, Laboratory Corporation of America Holdings (NYSE:LH)’s stock has performed -8.34%. For the last six months, the stock has performed -10.16%. From the start of the calendar year, shares have been 20.77%. Zooming in closer, company stock has been 15.06% for the quarter, -1.47% over the past month, and -3.19% over the past week.

Beta is used to measure a stock’s price volatility relative to the market. A stock with a beta of “0” indicates that its price is not correlated with the market. A positive beta indicates that the stock follows the market. A negative beta means that the stock inversely follows the market, decreasing in value when the market goes up. Laboratory Corporation of America Holdings (NYSE:LH) current has a Beta score of 1.16.

FUNDAMENTAL ANALYSIS

Scanning the equity markets, it is quite obvious that there are plenty of stocks to choose from. This may make things a bit overwhelming for the beginner investor, but it should also be seen as a great opportunity. Of course, studying up on every single stock may be nearly impossible. Just focusing in on a few different stocks at a time that pique the interest may be the way to start. Investors are often bombarded with stock picking strategies and sure bet winners. Some of the information might end up being correct, but a lot of it may turn out to be nonsense. If investors decide to manage their own money, they may want to make sure that no stone is left unturned. Doing the proper amount of research can work wonders for the health of a portfolio over the course of time. Following a proven market guru may work for some, but it may leave others with many questions that have gone unanswered. What works for one investor may not work for another.

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Laboratory Corporation of America Holdings’s EPS is 9.05.  Their EPS should be compared to other companies in the Healthcare sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Laboratory Corporation of America Holdings’s  P/E ratio is 16.87. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  Laboratory Corporation of America Holdings’s  PEG is 2.31.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of 12.50%.  Calculated by dividing Laboratory Corporation of America Holdings’s annual earnings by its total assets, investors will note a return on assets of 5.30%.  Finally, Laboratory Corporation of America Holdings’s return on investment stands at 7.60% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 2.20 for Laboratory Corporation of America Holdings (NYSE:LH).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.