Laboratory Corporation of America Holdings (LH)

LH stock forecast: buy or sell

LH stock outlook

  • Laboratory Corporation of America closed today at $178.68 after collapsing a -3.36% and broke a streak of 3 sessions in green.
  • Laboratory Corporation of America Holdings operates as an independent clinical laboratory company worldwide. It operates in two segments, LabCorp Diagnostics (LCD) and Covance Drug Development.
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Important note:
The opinions published in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this text does not know the individual situations of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are expressed for general educational reasons only

LH stock charts overview

Should I buy Laboratory Corporation of America stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is LH stock a buy?

In the current situation of Laboratory Corporation of America there is not any eligible buy setup. This doesn't mean LH will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Laboratory Corporation of America stock?

"To sell or not to sell", if you are holding Laboratory Corporation of America shares?. As when we have to buy shares, choosing when is the best time to sell is not a random decision, and we must use our own trading strategy. When selling, as well as buying, detailed strategies are very easy to use but are only valid for selling stocks you already own, not for shorting LH stock

A guiding principle is that you should not hold an operation that shows a greater losses than those expected upon the buy. The moment to sell your stock always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Laboratory Corporation of America stock?

In the current situation of Laboratory Corporation of America there is not any eligible sell setup, so Laboratory Corporation of America stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Laboratory Corporation of America stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days we couldn't find any rating for Laboratory Corporation of America

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Technical analysis

SMAs overview

A favorite tool of many traders are the moving averages, that easily show trend momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Technical analysts use supports and resistances to spot price points on a chart that tend to act as obstacles, preventing the price of a stock to move in certain direction. Supports are levels where the price may stop as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it is likely to continue descending until approaching another support level. On the other hand, resistance levels are where the price may find opposition as it moves up. In the same manner, this means that the price is more likely to "bounce off" at this level, and if it finally breaks this level, it will rally easily until it approaches the next resistance

The current resistances are:

  • R1: $179.00 (0.18% above)
  • R2: $181.72 (1.7% above)
  • R3: $182.75 (2.28% above)
  • The current support levels are:

  • S1: $178.44 (-0.13% below)
  • S2: $177.84 (-0.47% below)
  • S3: $176.71 (-1.1% below)
  • Bollinger bands

    The so-called Bollinger bands are a popular practice developed by John Bollinger. Essentially, the Bollinger Bands are bands that flow around a moving average and vary the distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on September 15, the price has been corrected downwards by 5.37%

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price action to reveal when the price of a share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI moves between 0 and 100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    The RSI dropped below the overbought level of 70 in late July after just crossing to the overbough zone for just one day (weak signal). The RSI reading today was 44.19. Since then, Laboratory Corporation of America stock sank a 11.24%

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    Earnings and financials

    In late July, LH hosted the shareholders call and released the Q2 report. LH reported Q2 earnings of $2.57 per share on sales of $2.8 billion. The analysts estimate was $1.00 per share on revenue of $2.4 billion.

    Compared to the same quarter last year, EPS was $2.93, so posted EPS is a reduction of -12.29%. Turnover just moved on an annualized basis in the second-quarter, from $2.9B to $2.8B last quarter.

    LH is hosting the earnings call on mid next October. Market predicts a per-share earnings of %s of $4.88, compared to previous quarter that made $2.57. Financial reporting day has an additional risk for investors as the information posted can gap up or down the price with exceptionally low volume and not honouring your buy/stop-loss orders. You can obtain more details about the earnings call and the earnings reports on the Investor Relations section of its website: http://www.labcorp.com.

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