How Labcorp's FDA-Cleared Blood Test for Alzheimer’s Has Changed Its Investment Story (LH)

• Labcorp recently announced the nationwide availability of the Lumipulse® pTau-217/Beta Amyloid 42 Ratio, the first FDA-cleared blood-based in-vitro diagnostic test to support Alzheimer's disease diagnosis through early detection of amyloid plaques in adults showing cognitive decline.
• This launch offers a less invasive and potentially more accessible alternative to current diagnostic methods, arriving as new clinical guidelines support wider use of blood-based biomarkers for Alzheimer’s disease assessment.
• We'll examine how Labcorp’s introduction of this FDA-cleared Alzheimer's test may influence its investment outlook and growth narrative.

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Labcorp Holdings Investment Narrative Recap

Labcorp shareholders generally look for growth powered by innovation in diagnostics, operational scale, and earnings strength. The recent launch of the FDA-cleared Lumipulse® pTau-217/Beta Amyloid 42 blood test for Alzheimer’s offers incremental upside to Labcorp’s growth story by supporting volume and differentiation, enhancing its competitive position as blood-based biomarkers gain acceptance. However, this development does not eliminate competitive pressures in diagnostics, which remain the most significant short-term risk to the business as pricing and contract renewals can affect revenue and margins.

Among recent announcements, the July 2025 release of “Test Finder,” a generative AI tool to streamline lab test selection for providers, stands out as highly relevant. Combining the new Alzheimer’s test with advanced AI tools could help Labcorp capture more test volume and reinforce its reputation for leadership in innovation, supporting the view that product pipeline strength is the key catalyst for sustained earnings growth.

By contrast, investors should be aware that even with new FDA-cleared tests, Labcorp still faces market risk if competitors ...

Read the full narrative on Labcorp Holdings (it's free!)

Labcorp Holdings' outlook forecasts $15.6 billion in revenue and $1.3 billion in earnings by 2028. This is based on a 5.1% annual revenue growth rate and an earnings increase of $536.6 million from the current $763.4 million.

Uncover how Labcorp Holdings' forecasts yield a $293.76 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Fair value estimates from three Simply Wall St Community members span US$200 to US$447.95, underscoring diverse potential for the shares. Consider how competitive pressures in diagnostics may influence these varied forecasts and the company's future performance.

Explore 3 other fair value estimates on Labcorp Holdings - why the stock might be worth 28% less than the current price!

Build Your Own Labcorp Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Labcorp Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Labcorp Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Labcorp Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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