Laboratory Corporation of America Holdings (LH)
Laboratory Corporation of America Holdings, more commonly known as Labcorp, is an American company headquartered in Burlington, North Carolina. It operates one of the largest clinical laboratory networks in the world, with a United States network of 36 primary laboratories.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is decreasing.
- The decline rate of the primary trend is 10.77% per annum.
- LH price at the close of November 19, 2024 was $236.23 and was higher than the top border of the primary price channel by $53.94 (29.59%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 7.67% per annum.
- LH price at the close of November 19, 2024 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of LH price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: March 24, 2021
End date: June 29, 2023
a = 5.6403
b = -0.0003
s = 0.0676
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -10.77%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0676) – 1
= 31.03%
March 24, 2021 calculations
Top border of price channel:
Exp(Y336)
= Exp(a + b × X336 + 2 × s)
= Exp(a + b × 490 + 2 × s)
= Exp(5.6403 + -0.0003 × 490 + 2 × 0.0676)
= Exp(5.6225)
= $276.58
Bottom border of price channel:
Exp(Y336)
= Exp(a + b × X336 – 2 × s)
= Exp(a + b × 490 – 2 × s)
= Exp(5.6403 + -0.0003 × 490 – 2 × 0.0676)
= Exp(5.3522)
= $211.08
June 29, 2023 calculations
Top border of price channel:
Exp(Y906)
= Exp(a + b × X906 + 2 × s)
= Exp(a + b × 1,317 + 2 × s)
= Exp(5.6403 + -0.0003 × 1,317 + 2 × 0.0676)
= Exp(5.3644)
= $213.67
Bottom border of price channel:
Exp(Y906)
= Exp(a + b × X906 – 2 × s)
= Exp(a + b × 1,317 – 2 × s)
= Exp(5.6403 + -0.0003 × 1,317 – 2 × 0.0676)
= Exp(5.0941)
= $163.06
Description
- The primary trend is decreasing.
- The decline rate of the primary trend is 10.77% per annum.
- LH price at the close of November 19, 2024 was $236.23 and was higher than the top border of the primary price channel by $53.94 (29.59%). This indicates a possible reversal in the primary trend direction.
Secondary Trend
Start date: August 23, 2022
End date: November 19, 2024
a = 5.0349
b = 0.0002
s = 0.0509
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0002) – 1
= 7.67%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0509) – 1
= 22.57%
August 23, 2022 calculations
Top border of price channel:
Exp(Y693)
= Exp(a + b × X693 + 2 × s)
= Exp(a + b × 1,007 + 2 × s)
= Exp(5.0349 + 0.0002 × 1,007 + 2 × 0.0509)
= Exp(5.3405)
= $208.61
Bottom border of price channel:
Exp(Y693)
= Exp(a + b × X693 – 2 × s)
= Exp(a + b × 1,007 – 2 × s)
= Exp(5.0349 + 0.0002 × 1,007 – 2 × 0.0509)
= Exp(5.1370)
= $170.20
November 19, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(5.0349 + 0.0002 × 1,826 + 2 × 0.0509)
= Exp(5.5063)
= $246.24
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.0349 + 0.0002 × 1,826 – 2 × 0.0509)
= Exp(5.3028)
= $200.90
Description
- The secondary trend is increasing.
- The growth rate of the secondary trend is 7.67% per annum.
- LH price at the close of November 19, 2024 was inside the secondary price channel.