Lab Corp of America

Not overly expensive at ~15x EPS, with attractive market growth (5-6%) driven by increasing penetration of genomic and other esoteric (don't know exactly what!) testing, with significant opportunity of margin expansion as fixed costs are sizable at ~$1B on revenues of 7B. Second largest lab company in the US after Quest, customer split between managed care, individual patients, some Medicare/Medicaid. Lots of small labs - presumably opportunity to gain share over time, although may be cost competitive eating into margins. Limited risk of being impacted by healthcare bill (that's now toasted anyway), although near-term volume trends are not favorable according to some checks (volume may be flat to down slightly). Pretty low beta stock, I would expect to trade at 18x P/E. Next year's earnings projected to be 5.50, so could get to $100 a share - vs 73 currently.