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Quest Diagnostics Incorporated (DGX)



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Upturn Advisory Summary
07/09/2025: DGX (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $183.92
1 Year Target Price $183.92
8 | Strong Buy |
1 | Buy |
10 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -4.28% | Avg. Invested days 41 | 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 19.42B USD | Price to earnings Ratio 21.97 | 1Y Target Price 183.92 |
Price to earnings Ratio 21.97 | 1Y Target Price 183.92 | ||
Volume (30-day avg) 19 | Beta 0.49 | 52 Weeks Range 135.09 - 181.56 | Updated Date 07/8/2025 |
52 Weeks Range 135.09 - 181.56 | Updated Date 07/8/2025 | ||
Dividends yield (FY) 1.78% | Basic EPS (TTM) 7.85 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 8.83% | Operating Margin (TTM) 13.88% |
Management Effectiveness
Return on Assets (TTM) 6.13% | Return on Equity (TTM) 13.95% |
Valuation
Trailing PE 21.97 | Forward PE 17.89 | Enterprise Value 25803223063 | Price to Sales(TTM) 1.91 |
Enterprise Value 25803223063 | Price to Sales(TTM) 1.91 | ||
Enterprise Value to Revenue 2.54 | Enterprise Value to EBITDA 13.23 | Shares Outstanding 111635000 | Shares Floating 111063898 |
Shares Outstanding 111635000 | Shares Floating 111063898 | ||
Percent Insiders 0.4 | Percent Institutions 96.03 |
Upturn AI SWOT
Quest Diagnostics Incorporated

Company Overview
History and Background
Quest Diagnostics was founded in 1967 as Metropolitan Pathology Laboratory, Inc. It evolved through mergers and acquisitions, becoming SmithKline Beecham Clinical Laboratories, and eventually Quest Diagnostics in 1997, focusing on diagnostic testing and information services.
Core Business Areas
- Diagnostic Information Services: Provides a broad range of clinical testing services, including routine blood tests, genetic testing, and cancer diagnostics. This segment generates the majority of the company's revenue. Competes with LabCorp (LH).
- Employer Population Health Services: Offers solutions to help employers manage the health of their workforce, including wellness programs and biometric screenings. Competes with large insurance providers.
Leadership and Structure
The leadership team is headed by the CEO, Jim Davis. The organizational structure includes various departments such as operations, finance, marketing, and research and development, organized under executive leadership.
Top Products and Market Share
Key Offerings
- Routine Clinical Testing: Includes basic blood tests, urinalysis, and other common diagnostic tests. Market share is significant, contributing substantially to revenue. LabCorp (LH) and Sonic Healthcare (SHC) are major competitors.
- Advanced Diagnostics: Encompasses genetic testing, cancer diagnostics, and other specialized tests. Growth area with increasing demand. Competitors include Myriad Genetics (MYGN) and Exact Sciences (EXAS).
- COVID-19 Testing: Services related to COVID-19 diagnostics, including PCR and antibody tests. Significant revenue earner during the pandemic period. Competitors include LabCorp (LH) and various smaller testing labs.
Market Dynamics
Industry Overview
The diagnostic testing industry is experiencing growth driven by an aging population, increasing prevalence of chronic diseases, and technological advancements. Personalized medicine and preventative care are key trends.
Positioning
Quest Diagnostics is a leading provider of diagnostic testing services in the US, leveraging its extensive network of laboratories and strong brand reputation. It competes on scale, technology, and service quality.
Total Addressable Market (TAM)
The global in vitro diagnostics market is expected to reach $148.4 billion by 2029. Quest is well-positioned to capture a significant share through its broad service offering and established infrastructure.
Upturn SWOT Analysis
Strengths
- Large and established network of laboratories
- Strong brand recognition
- Extensive test menu
- Advanced technology platform
- Nationwide presence
Weaknesses
- Dependence on reimbursement rates
- Exposure to regulatory changes
- Competition from hospitals and other labs
- Potential for data breaches
- High fixed costs
Opportunities
- Expanding genetic testing services
- Developing new diagnostic technologies
- Partnering with healthcare providers
- Growing international presence
- Increasing demand for preventative care
Threats
- Decreasing reimbursement rates
- Increased competition
- Regulatory changes
- Economic downturns
- Technological disruption
Competitors and Market Share
Key Competitors
- LH
- SHC
- DGX
Competitive Landscape
Quest Diagnostics has a strong competitive position due to its scale, brand reputation, and extensive network. However, it faces increasing competition from other national and regional labs, as well as hospitals.
Major Acquisitions
PathAI Diagnostics
- Year: 2024
- Acquisition Price (USD millions): 100
- Strategic Rationale: Enhance digital pathology and AI capabilities.
Growth Trajectory and Initiatives
Historical Growth: The company has experienced steady growth in revenue and earnings, driven by increasing demand for diagnostic testing and strategic acquisitions.
Future Projections: Analysts project continued growth, driven by expansion of genetic testing, partnerships, and new technologies; Placeholder.
Recent Initiatives: Recent initiatives include investments in new technologies, expansion of genetic testing services, and strategic partnerships with healthcare providers; Placeholder.
Summary
Quest Diagnostics is a major player in the diagnostic testing industry with a strong brand and extensive network. Increasing competition and reimbursement pressures are key challenges, but growth opportunities exist in advanced diagnostics and partnerships. Financially, the company demonstrates consistent performance with potential for continued, albeit moderate, growth if cost-cutting and efficiency initiatives are successful.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Investor Relations Presentations
- Analyst Reports
- Industry Research Reports
- Company Website
Disclaimers:
The information provided is for informational purposes only and should not be construed as investment advice. Market share figures are approximate and may vary depending on the source. Financial data should be verified with official company filings.
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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