NEW YORK (MONEY Magazine) - Just days after MONEY printed its Fall 2002 issue with a recommendation of Laboratory Corp. of America, the clinical testing chain slammed investors by announcing that slower growth in its core testing business would hurt third-quarter revenues and profits.

The stock, which MONEY recommended at $32.50, has plummeted to around $20.

The recent turmoil makes this No. 2 testing chain an even bigger bargain than it was a month ago. The sales shortfall was not that severe, roughly $10 million to $15 million, or 2 percent of quarterly revenues.

Sales still grew 16 percent and, as rating agency Standard & Poor's pointed out, the company generated more than $160 million in free cash flow in the first six months of the year. "The problem is isolated," said S&P. In addition, the company's genomics business continues to strengthen.

The stock's reaction had more to do with psychology: For several years now, Lab Corp. has consistently beaten analysts' earnings expectations, so an earnings miss seemed particularly surprising. The stock can now be had for 9 times next year's expected earnings.