Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have looked hard at Labcorp, and we want to say up front: this is a well-run company doing necessary work, currently firing on all cylinders, with a stock at an all-time high after a splendid run. Q2 2026 revenue grew 5.8% to $3.73 billion, adjusted EPS grew 14.7% to $4.99, and management raised full-year guidance for the second time this year. So why two stars? Because our first question is never "is the company doing well right now?" It is "does this business possess economics that compound wealth over decades?" And on that question, honesty compels a harder answer. Labcorp is a scale player in a structurally price-deflationary industry. Its largest customers — insurers and the federal government — set its prices, and they set them lower over time.
Recent filings analysed: 10-Q (2026-08-05), 8-K (2026-07-30), 8-K (2026-07-10), 8-K (2026-05-27).
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