Lab-testing firm and Motley Fool Stock Advisor pick LabCorp
So far this year, Quest Diagnostic's
LabCorp continues to focus on the managed care business, and mentioned: working with existing client Wellpoint
But the good times are expected to continue, as LabCorp expects full-year revenue growth of 13%-14% and earnings expansion of as much as 30%. Better yet, based off forward company guidance, LabCorp trades at a lower multiple of free cash flow than Quest.
That's because LabCorp is currently growing much faster, a trend that has existed for as long as I can remember. It also posts higher profit margins, even though Quest continues to be the larger firm in terms of overall sales. As it stands currently, Quest is the value play, as it regroups from the UnitedHealth loss, and LabCorp continues to take names as the steady growth player in the industry. Overall, I believe the space continues to be worth tracking and offers opportunities -- regardless of which type of Foolish investor you are.
For related Foolishness:
LabCorp and UnitedHealth are Stock Advisor selections. Interested in the health-care stocks Tom and David Gardner have recommended? Then sign up for a free 30-day trial of Stock Advisor, which is beating the market by more than 37 percentage points.
Fool contributor Ryan Fuhrmann is long shares of Quest, but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. Quest and UnitedHealth are Inside Value recommendations. The Fool has an ironclad disclosure policy.