Labcorp Holdings (LH) Could Be 4% Undervalued As Guidance Rises And New Tests Roll Out

Labcorp Holdings (LH) reported strong Q2 revenue and net income, leading to raised full-year 2026 guidance and the launch of new precision oncology and consumer genetic testing offerings. The stock has seen significant gains recently, and is considered approximately 4.4% undervalued based on a fair value estimate of $326.81, driven by anticipated increased test volume and improved operational efficiencies from AI and technology innovations. However, potential risks include revenue pressure from PAMA-related Medicare changes and tough pricing in diagnostics.