Laboratory Corporation of America Holdingsor LabCorp LH recently stated the record and distribution dates for the planned spin-off of the company’s wholly-owned subsidiary, Fortrea Holdings.
The record date will be Jun 20, 2023 while the distribution date will be Jun 30, 2023.
LabCorp also noted that the spin-off is expected to be done through the distribution of 100% of the common stock of Fortrea to holders of LabCorp's common stock. LabCorp's stockholders will receive one share of Fortrea common stock for every share of LabCorp common stock they hold as of the record date.
Effective Jun 10, the U.S. Securities and Exchange Commission declared Fortrea's Registration Statement on Form 10. NASDAQ has approved the listing of Fortrea's common stock on the NASDAQ Stock Market under the ticker symbol FTRE.
Fortrea will hold Labcorp's Clinical Development and Commercialization Services businesses. The spin-off of these businesses can be attributed to the company’s decision to focus on high-growth businesses.
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A Few More Words on the Latest Spinoff
Fortrea, post the completion of the spin-off, will operate as a global contract research organization (CRO) that offers comprehensive drug and medical device development services. With more than 19,000 people, Fortrea will provide Phase I through IV clinical trial management and commercialization solutions to pharmaceutical and biotechnology organizations around the world.
Fortrea, as a leading, pure-play CRO, intends to help customers drive innovation and advance next-generation therapies for patients globally.
LabCorp’s Growth Strategy at a Glance
In its efforts to expand further, LabCorp is focusing more on high-growth opportunity areas such as neurodegenerative, autoimmune and liver disease as well as cell and gene therapy. In Oncology, a high-growth area, LabCorp continues to expand oncology capabilities to serve clinicians and drug development customers.
Meanwhile, the company’s drug development business is benefiting from collaborations with leading pharmaceutical and biotechnology companies with whom it started to work on potential antivirals, treatments and vaccines.
Share Price Performance
Over the past year, LabCorp has underperformed its industry. Shares of LabCorp have improved 0.5% compared to the industry’s 15.8% rise.
Zacks Rank and Key Picks
The stock carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall healthcare sector are Penumbra PEN, Lantheus LNTH and Neuronetics STIM. While Penumbra and Lantheus sport a Zacks Rank #1 (Strong Buy), Neuronetics carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Penumbra’s stock has risen 139.2% in the past year. The Zacks Consensus Estimate for Penumbra’s earnings per share (EPS) has increased from $1.55 to $1.56 for 2023 and remained constant at $2.56 for 2024 in the past 30 days.
PEN’s earnings beat estimates in each of the trailing four quarters, the average surprise being 109.42%. In the last reported quarter, the company registered an earnings surprise of 109.09%.
The Zacks Consensus Estimate for Lantheus’ 2023 EPS has remained constant at $5.60 in the past 30 days. Shares of the company have improved 39% in the past year against the industry’s 27.6% decline.
LNTH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 25.77%. In the last reported quarter, the company recorded an earnings surprise of 13.95%.
Estimates for Neuronetics’ loss per share have narrowed from $1.32 to $1.29 for 2023 in the past 30 days. Shares of the company have declined 30.4% in the past year against the industry’s 6.7% growth.
STIM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.61%. In the last reported quarter, Neuronetics delivered an earnings surprise of 2.56%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
Penumbra, Inc. (PEN) : Free Stock Analysis Report
Lantheus Holdings, Inc. (LNTH) : Free Stock Analysis Report
Neuronetics, Inc. (STIM) : Free Stock Analysis Report
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