Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Laboratory Corp of America Hldgs

(

LH

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Laboratory Corp of America Hldgs as such a stock due to the following factors:

  • LH has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $124.3 million.
  • LH has traded 1,207 shares today.
  • LH is trading at a new lifetime high.

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More details on LH:

Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide. LH has a PE ratio of 21.3. Currently there are 13 analysts that rate Laboratory Corp of America Hldgs a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Laboratory Corp of America Hldgs has been 1.3 million shares per day over the past 30 days. Laboratory Corp of America Hldgs has a market cap of $12.6 billion and is part of the health care sector and health services industry. The stock has a beta of 0.67 and a short float of 5.1% with 4.03 days to cover. Shares are up 17.8% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Laboratory Corp of America Hldgs as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, LH's share price has jumped by 27.53%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • LH's revenue growth trails the industry average of 18.4%. Since the same quarter one year prior, revenues slightly increased by 5.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 38.57% is the gross profit margin for LABORATORY CP OF AMER HLDGS which we consider to be strong. Regardless of LH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LH's net profit margin of 7.90% compares favorably to the industry average.
  • LABORATORY CP OF AMER HLDGS' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, LABORATORY CP OF AMER HLDGS reported lower earnings of $5.93 versus $6.24 in the prior year. This year, the market expects an improvement in earnings ($7.60 versus $5.93).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, LABORATORY CP OF AMER HLDGS's return on equity exceeds that of both the industry average and the S&P 500.

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