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Labcorp Adds New Capabilities to Global Trial Connect: Stock to Gain?

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Labcorp (LH - Free Report) has announced enhancements to Global Trial Connect, a suite of digital, data and operational solutions aimed at increasing the speed of clinical trials at the heart of clinical research-investigator sites. Launched in June of this year, it is available to all present Labcorp Central Laboratory clients.

Labcorp Global Trial Connect incorporates complementary digital and data solutions that help accelerate clinical study startup, maintain study momentum and increase study throughput.

Predicting LH Stock Movement Following the News

After the announcement on Nov. 12, shares of Labcorp edged up 0.1%, finishing at $244.26 yesterday. The company continues the growth momentum in central laboratory business and diagnostics, backed by strong volume and core performance and by advancing in science, technology and innovation. Accordingly, we expect the LH stock to remain positive surrounding this development.

Labcorp currently has a market capitalization of $20.4 billion. According to the Zacks Consensus Estimate, the company’s 2024 earnings are expected to improve by 7.2% on a 0.7% increase in revenues. It has delivered an earnings beat of 2.87%, on average, in the trailing four quarters.

New Enhancements in Labcorp Global Trial Connect

The latest enhancements to Global Trial Connect aim to reduce investigator site burden and improve sponsor oversight with a single point of access via the Labcorp Investigator Site and Sponsor Portals, respectively. One such update, Sample Tracking, facilitates timelier decision-making with earlier visibility into a sample’s chain of custody from registration through receipt by the company’s laboratories. It also enables access to critical details to proactively manage the process with customizable views and reports.

Electronic Requisition eliminates paper forms and reduces queries by up to 70%, based on early studies where it has been deployed, with fully digital workflows and operational instructions for easier access, filing and reference. This is available across a wide variety of workflows, including those with complex sampling such as anatomic pathology, histology and home health visits.

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According to Ryan Baehl, the vice president of global operations of Labcorp’s Central Laboratory Services, integration of these features will empower earlier decision-making and provide actionable analytics that helps sites and sponsors reduce queries and improve protocol compliance. This is the latest update in the company’s roadmap to address delivery efficiency across the clinical trial lifecycle and redefine its global laboratory services.

Industry Prospects Favoring LH

Per a research report, theglobal clinical laboratory service market is valued at $233.24 billion in 2023 and forecast to grow at a compound annual rate of 3.5% through 2030.

The market growth is driven by the increasing burden of chronic diseases and demand for early diagnostic tests, as well as rapid advancements in data management and sample preparation. The growing adoption of laboratory automation systems is expected to favor the market for clinical lab services.

Labcorp’s Recent Developments

Last month, Labcorp expanded its portfolio of sexually transmitted infection testing options with the First to Know Syphilis Test. The company will serve as the exclusive distributor of tests to providers in healthcare settings nationwide through an agreement with over-the-counter and point-of-care diagnostic test developer NOWDiagnostics.

LH Stock Price Performance

In the past year, Labcorp shares have risen 17.4% compared to the industry’s 11.9% growth.

LH’s Zacks Rank and Key Picks

Labcorp currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Boston Scientific (BSX - Free Report) , Haemonetics (HAE - Free Report) and Globus Medical (GMED - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific’s shares have risen 64.3% in the past year. Estimates for the company’s 2024 earnings per share have jumped 2.5% to $2.46 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 8.29%. In the last reported quarter, it posted an earnings surprise of 8.62%.

Estimates for Haemonetics’ fiscal 2025 earnings per share have jumped 0.4% to $4.59 in the past 30 days. Shares of the company have increased 4.5% in the past year compared with the industry’s growth of 26.5%. HAE’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 2.82%. In the last reported quarter, it delivered an earnings surprise of 2.75%.

Estimates for Globus Medical’s 2024 earnings per share have increased 0.4% to $2.95 in the past 30 days. Shares of the company have surged 81.1% in the past year compared to the industry’s 23.4% growth. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%. In the last reported quarter, it delivered an earnings surprise of 27.69%.

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