Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, medical lab operator Laboratory Corp. of America (NYSE: LH) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at LabCorp's business and see what CAPS investors are saying about the stock right now.

LabCorp facts

Headquarters (Founded)

Burlington, N.C. (1971)

Market Cap

$8.91 billion


Health-care services

Trailing-12-Month Revenue

$5 billion


Chairman/CEO David King

CFO William Hayes

Return on Equity (Average, Past 3 Years)



$230.7 million / $2.19 billion


Bio-Reference Labs (Nasdaq: BRLI)

Quest Diagnostics (NYSE: DGX)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 640 members who have rated LabCorp believe the stock will outperform the S&P 500 going forward. These bulls include DanielSparks and Hornblower1810.

Late last year, DanielSparks tapped LabCorp as a solid selection:

Its business is easy to understand and extremely predictable -- just like its free cash flow. This is an undervalued business with low downside risk and great potential. You can't go wrong buying this business at this price.

In fact, LabCorp's three-year average return on equity of 26.5% easily tops that of its closest competitors Bio-Reference Labs (18.4%) and Quest Diagnostics (19.3%).

CAPS member Hornblower1810 elaborates on the bull case:

As hospitals consolidate they are acquiring primary care practices in their communities. These practices are now directing much of their lab tests to Lab Corp. True, the office & waiting rooms of Lab Corp are far from glamorous but they are highly efficient, fast, reliable and low cost. Plus you can order your own lab testing online with no need for a physician referral if you like.

What do you think about LabCorp, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. LabCorp is a Motley Fool Stock Advisor pick. Quest Diagnostics is an Inside Value choice. Motley Fool Alpha owns shares of LabCorp and Quest Diagnostics. The Fool owns shares of Bio-Reference Labs. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.