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Is this Large Market Cap Stock target price reasonable for Laboratory Corp. of America Holdings (NYSE:LH)?

The company in question is, Laboratory Corp. of America Holdings (NYSE:LH) currently with a stock price of 139.6 (-0.82% today). The market cap for Laboratory Corp. of America Holdings is 14385.67, and is in the sector Healthcare, and Medical Laboratories & Research industry. The target price for Laboratory Corp. of America Holdings is 149.63. Currently Laboratory Corp. of America Holdings is trading with a P/E of 23.26, and a forward P/E of 14.45. Average volume for Laboratory Corp. of America Holdings is 869.95 and so far today it is 343017.

Performance in the last year for Laboratory Corp. of America Holdings has been 12.16%. For EPS growth, Laboratory Corp. of America Holdings has seen a growth of -26.60%, and is looking to grow in the next year to 10.45%. More long term stats show that EPS growth has been -3.90% over the last five years and could be 10.08% for the next five years. Laboratory Corp. of America Holdings has seen sales growth quarter over quarter at 7.10%, with EPS growth quarter over quarter at 16.30%. The 20-day simple moving average is 5.18%, with the 200-day simple moving average coming to 14.68%.

Since the IPO date for Laboratory Corp. of America Holdings on the 3/29/1990, Laboratory Corp. of America Holdings has seen performance year to date to be 13.85%. With Laboratory Corp. of America Holdings trading at 139.6, the dividend yield is *TBA, and the EPS is 6.05.

So could Laboratory Corp. of America Holdings, be undervalued? Well as said before P/E is 23.26. The PEG is 2.31, P/S is 1.53 and the P/B is at 2.71. The P/cash is 22.49, with P/free cash flow at 16.97.

Laboratory Corp. of America Holdings ability to deal with debt shows that the current ratio is 2.1, and the quick ratio is 1.9. This is with long term debt/equity at 1.12, and total debt/equity at 1.14.

In terms of margins, Laboratory Corp. of America Holdings has a gross margin of 33.00%, an operating margin of 12.90% and a profit margin of 6.60%.Payout ratio for Laboratory Corp. of America Holdings is 0.00%. Return on assets come to 4.40% with return on investment coming to 6.30%.

Insider ownership for Laboratory Corp. of America Holdings, is at 0.30% and institutional ownership comes to 96.00%. Outstanding shares are at 102.2. While shares float is 101.93. The float short is currently 3.09%, and short ratio is 3.62.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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