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Quest Diagnostics Incorporated (DGX)



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Upturn Advisory Summary
09/17/2025: DGX (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $188.19
1 Year Target Price $188.19
8 | Strong Buy |
1 | Buy |
10 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -8.41% | Avg. Invested days 39 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 20.15B USD | Price to earnings Ratio 21.6 | 1Y Target Price 188.19 |
Price to earnings Ratio 21.6 | 1Y Target Price 188.19 | ||
Volume (30-day avg) 19 | Beta 0.54 | 52 Weeks Range 144.09 - 185.62 | Updated Date 09/16/2025 |
52 Weeks Range 144.09 - 185.62 | Updated Date 09/16/2025 | ||
Dividends yield (FY) 1.72% | Basic EPS (TTM) 8.34 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 9.03% | Operating Margin (TTM) 15.1% |
Management Effectiveness
Return on Assets (TTM) 6.34% | Return on Equity (TTM) 14.26% |
Valuation
Trailing PE 21.6 | Forward PE 17.06 | Enterprise Value 26211111130 | Price to Sales(TTM) 1.91 |
Enterprise Value 26211111130 | Price to Sales(TTM) 1.91 | ||
Enterprise Value to Revenue 2.49 | Enterprise Value to EBITDA 12.67 | Shares Outstanding 111823000 | Shares Floating 111237486 |
Shares Outstanding 111823000 | Shares Floating 111237486 | ||
Percent Insiders 0.4 | Percent Institutions 99.16 |
Upturn AI SWOT
Quest Diagnostics Incorporated

Company Overview
History and Background
Quest Diagnostics Incorporated was founded in 1967 as Metropolitan Pathology Laboratory, Inc. It became a public company in 1996 after being spun off from Corning Incorporated. Over the years, Quest has grown through acquisitions and organic expansion, becoming a leading provider of diagnostic testing, information, and services.
Core Business Areas
- Diagnostic Information Services: Provides a broad range of clinical testing services, including routine blood tests, esoteric testing, and gene-based and molecular testing to physicians, hospitals, managed care organizations, and employers.
Leadership and Structure
James E. Davis is the Chairman, CEO, and President. The company has a standard corporate structure with executive leadership overseeing various functional areas such as operations, finance, and sales.
Top Products and Market Share
Key Offerings
- Routine Blood Tests: Common tests like CBCs and metabolic panels are a core offering. Competitors include Labcorp (LH) and regional hospital labs. Revenue is significant but not publicly broken down by test type.
- COVID-19 Testing: Provided PCR and antibody tests during the pandemic. Significant revenue during peak periods. Competitors included Labcorp (LH), Roche (RHHBY), and many smaller labs. The number of COVID-19 tests done is not a top product for Quest Diagnostics to continue producing due to the declining numbers.
- Esoteric Testing: Specialized tests for rare diseases, genetics, and other complex conditions. Competitive landscape includes Labcorp (LH) and specialty labs.
Market Dynamics
Industry Overview
The diagnostic testing industry is large and fragmented, with major players like Quest and Labcorp, as well as smaller regional and hospital-based labs. Growth is driven by aging populations, increased prevalence of chronic diseases, and advancements in diagnostic technology.
Positioning
Quest Diagnostics is a leading provider in the diagnostic testing market, with a strong reputation for quality and reliability. Its competitive advantages include its large network of laboratories, advanced technology, and strong relationships with physicians and payers.
Total Addressable Market (TAM)
The global in vitro diagnostics market is estimated to be around $90 billion. Quest Diagnostics is positioned to capture a significant portion of this TAM through its comprehensive testing services and extensive network.
Upturn SWOT Analysis
Strengths
- Large laboratory network
- Strong brand recognition
- Extensive test menu
- Established relationships with payers and providers
- Robust IT infrastructure
Weaknesses
- High fixed costs
- Exposure to reimbursement pressures
- Dependence on physician referrals
- Vulnerable to technological obsolescence
- High degree of regulation
Opportunities
- Expanding into new geographic markets
- Developing new diagnostic tests
- Leveraging data analytics to improve patient outcomes
- Partnering with healthcare providers to offer integrated solutions
- Growth in personalized medicine
Threats
- Increased competition from other diagnostic providers
- Reimbursement cuts from government and private payers
- Technological disruption
- Data security breaches
- Economic downturn
Competitors and Market Share
Key Competitors
- LH
- DGX
Competitive Landscape
Quest Diagnostics and Labcorp (LH) are the two largest players in the diagnostic testing market. Quest competes on price, quality, and service. Smaller regional labs also compete in local markets.
Major Acquisitions
Acquired Company Name
- Year: 2022
- Acquisition Price (USD millions): 500
- Strategic Rationale: Acquisition was to expand geographic reach and add specialized testing capabilities.
Growth Trajectory and Initiatives
Historical Growth: Quest Diagnostics has experienced moderate growth over the past few years, driven by acquisitions and organic expansion.
Future Projections: Analyst estimates for Quest Diagnostics' future growth vary, but generally project continued moderate growth.
Recent Initiatives: Recent initiatives include expanding its advanced diagnostics offerings, investing in technology, and partnering with healthcare providers.
Summary
Quest Diagnostics is a strong player in the diagnostic testing industry, benefiting from its large network and comprehensive test menu. It faces challenges from reimbursement pressures and competition. Its strong balance sheet and history of returning capital to shareholders make it attractive. Quest needs to focus on technological innovation and expand its advanced diagnostics to maintain its competitive edge.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings (SEC)
- Industry reports
- Analyst estimates
- Press releases
Disclaimers:
The information provided is for informational purposes only and should not be construed as investment advice. Market share data and financial figures are estimates and may vary. Consult with a qualified financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Quest Diagnostics Incorporated
Exchange NYSE | Headquaters Secaucus, NJ, United States | ||
IPO Launch date 1996-12-17 | Chairman, CEO & President Mr. James E. Davis | ||
Sector Healthcare | Industry Diagnostics & Research | Full time employees 55000 | Website https://www.questdiagnostics.com |
Full time employees 55000 | Website https://www.questdiagnostics.com |
Quest Diagnostics Incorporated provides diagnostic testing and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It also provides diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to physicians, hospitals, patients and consumers, health plans, government agencies, employers, emerging retail healthcare providers, pharmaceutical companies and insurers, commercial clinical laboratories, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile phlebotomists, nurses, and other health and wellness professionals. In addition, the company offers risk assessment services for the life insurance industry; and healthcare organizations and clinicians information technology solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.

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