Why Is Everyone Talking About LabCorp Stock?

Millions of tests for COVID-19 have been performed in the U.S., but experts and politicians continue to emphasize that increased testing for the coronavirus is essential for a safe reopening of the economy. With testing so much in the public discussion now, it's not surprising that leading medical testing companies are getting attention from investors, especially as new COVID-19 tests are being granted emergency use authorization every week.

Laboratory Corporation of America (NYSE: LH), or LabCorp as it's known, is one of the biggest diagnostic testing companies in the country and has been in the headlines for coronavirus testing. Here's what people are talking about and what the pandemic means for the company's stock as an investment opportunity.

LabCorp was the first U.S. commercial lab to launch testing for COVID-19 using the polymerase chain reaction (PCR) molecular test on March 5, only five days after the U.S. Food and Drug Administration (FDA) loosened rules for testing. The now-familiar nasal swab tests to detect the SARS-CoV-2 virus were initially in short supply, but the company ramped up quickly, and had processed 500,000 tests within a month. On the company's conference call on April 29, LabCorp said that its capacity was up to 60,000 tests per day and that it had processed over a million COVID-19 tests.