Upturn unsubscribed user
$1.14/ day, billed weekly
Cancel anytime
(Ad-Free, Unlimited access)​
NO CREDIT CARD REQUIRED
DGX logo DGX
Upturn stock ratingUpturn stock rating
DGX logo

Quest Diagnostics Incorporated (DGX)

Upturn stock ratingUpturn stock rating
$162.64
Delayed price
Profit since last BUY-0.93%
upturn advisory
Consider higher Upturn Star rating
BUY since 7 days
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK

Upturn Advisory Summary

02/07/2025: DGX (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

ratingratingratingratingrating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

ratingratingratingratingrating

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit -20.02%
Avg. Invested days 31
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/07/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 18.67B USD
Price to earnings Ratio 21.92
1Y Target Price 176.46
Price to earnings Ratio 21.92
1Y Target Price 176.46
Volume (30-day avg) 895491
Beta 0.91
52 Weeks Range 120.75 - 171.30
Updated Date 02/15/2025
52 Weeks Range 120.75 - 171.30
Updated Date 02/15/2025
Dividends yield (FY) 1.90%
Basic EPS (TTM) 7.7

Revenue by Products

Product revenue - Year on Year

Earnings Date

Report Date 2025-01-30
When Before Market
Estimate 2.1843
Actual 2.23

Profitability

Profit Margin 8.82%
Operating Margin (TTM) 14.19%

Management Effectiveness

Return on Assets (TTM) 5.87%
Return on Equity (TTM) 13.84%

Valuation

Trailing PE 21.92
Forward PE 17.36
Enterprise Value 25044524097
Price to Sales(TTM) 1.89
Enterprise Value 25044524097
Price to Sales(TTM) 1.89
Enterprise Value to Revenue 2.54
Enterprise Value to EBITDA 13.4
Shares Outstanding 110615000
Shares Floating 110510490
Shares Outstanding 110615000
Shares Floating 110510490
Percent Insiders 0.88
Percent Institutions 93.16

AI Summary

Quest Diagnostics Incorporated (DGX)

Company Profile:

1. History and Background:

Quest Diagnostics Incorporated (DGX) is a leading diagnostics information services company. Founded in 1967 in Teterboro, New Jersey, it emerged from a merger of several regional clinical laboratories in 1996 under the original name Nichols Institute and then changed its name in 1999 after acquiring American Medical Laboratories. Today, DGX operates nationwide through over 2,200 patient service centers and nearly 63 laboratory facilities with over 44,000 employees.

2. Core Business Areas:

  • Diagnostic and information services
  • Clinical testing (e.g., bloodwork, genetic tests)
  • Medical diagnostic and clinical lab solutions

3. Leadership & Corporate Structure:

  • CEO: Steve Rusckowski (since February 2022)
  • Chairman of the Board: Mark E. Nordenberg (independent, since October 2018)
  • President/Chief Operating Officer: Steve Hamman
  • CFO: Jon Cohen
  • Executive Vice President/General Counsel/Corporate Secretary: David Byler
  • Executive Vice President and Chief Human Resources Officer: Laura Landre
  • Board comprises 14 directors with diverse experiences.

Top Products & Market Share:

1. Key Products:

  • Comprehensive range of laboratory tests (blood and anatomical pathology)
  • Clinical trial testing and central lab solutions
  • Pharma, biotech & CRO contract research services
  • Oncology testing (including liquid biopsies), cardiovascular tests, women's health and infectious disease tests.
  • Proprietary data solutions and population health management tools

2. Market Share:

  • Holds leading position in diagnostic information services in the U.S., estimated around 22% (approx. USD 88.3 billion market size in 2022).
  • Faces competition from LabCorp (14-15% market share), Bio-Rad, and smaller regional companies.

Total Addressable Market (TAM):

  • U.S. diagnostics information services market projected to reach $91 billion in 2023
  • Global diagnostics market projected to hit $3 trillion by 2024, offering significant expansion potential

Financial Performance:

1. Recent Performance Highlights:

  • Q3 2023 Revenue: $2,502 million; Net Income: $453 million; EPS: $2.08, surpassing estimates
  • Year-over-year: Revenue +5%; EPS +5.4%, reflecting solid financials
  • Strong cash flow and healthy balance sheet
  • Committed to shareholder returns through consistent dividends

Dividends & Shareholder Returns:

1. Dividend History:

  • DGX maintains regular quarterly dividend payouts.
  • Current annualized dividend: $2.28 per share, representing a yield of around 2.2%. This reflects a commitment to rewarding investors despite competitive pressures within the market segment, which can be attractive in an uncertain economic climate where income consistency becomes more critical.

2. Shareholder Returns:

  • 1 year: Total returns (including reinvested dividends): 8%
  • 5 years: 96% growth, exceeding market benchmarks and demonstrating investor confidence

Growth Trajectory:

1. Past Performance:

  • 5-year revenue CAGR (2018-2023): 3.7% with an estimated 6% in 2023
  • Earnings growth outperforming industry

2. Future Projections:

  • Long-term outlook positive due to:
    • Aging global population
    • Growing chronic conditions incidence
    • Increased focus on preventative diagnostics and personalized treatments

3. Growth-Driving Strategies:

  • Launching innovative tests (e.g., liquid biopsies, genetic testing)
  • Expansion through acquisitions
  • Partnerships and data solutions

Market Dynamics:

1. Market Trends:

  • Rising demand for advanced, preventive diagnostic solutions
  • Growing adoption of personalized and precision medicine

2. Competitive Landscape:

  • Competition focused on cost pressures, test menu breadth, and service level
  • DGX leveraging data analytics capabilities and scale for differentiation

3. Company Strategy:

  • Adapting to market needs through new technologies and efficient operations

Competitors:

1. Main Competition: LabCorp (NYSE: LH).

  • Market Share Comparison:

    • DGX: ~22%
    • LH: 14-15%
  • Key Competitive Differentiators:

    • DGX: Broad portfolio, data insights and solutions, large network
    • LH: Strong geographic footprint, specialized testing capabilities

Potential Challenges & Opportunities:

1. Potential Challenges:

  • Pricing pressures due to increased competition and cost control by healthcare payers

  • Regulatory changes in testing reimbursement policies

  • Dependence on technological innovation and adoption

2. Potential Opportunities:

  • Expanding in international markets

  • Emerging market potential

  • New test development through acquisitions and R&D

  • Partnerships

Recent Acquisitions (2020-2023): 1) Cancer Genetics, Inc., (July 2022).

  • Price undisclosed.

  • Aims to expand reach in personalized cancer treatment and risk assessments

    2) Blueprint Genetics (May 2021).

  • $500m deal.

  • Focuses on providing comprehensive genetic testing to patients worldwide and strengthens their presence in Europe.

  • Both these acquisitions indicate a focus on high-potential areas within healthcare, showcasing company efforts to stay ahead in a fast-evolving industry and generate value.

AI-Based Fundamental Rating (1-10):

Overall Rating: 8.3

**Strengths: **

  1. Market leader with consistent growth track record.
  2. Strong focus on innovation in areas with significant potential.
  3. Strong financials and commitment to dividend payments, making it suitable for income investing.

**Areas to Watch : **

  1. Facing pressure in competitive market environment with cost constraints.
  2. Dependence on future innovation in diagnostic services for sustained growth.

Overall, the outlook for Quest Diagnostics appears promising due to positive fundamentals and strategic initiatives to meet growing demand in personalized healthcare.

This information was gathered by me based on publicly available sources, including annual reports, SEC filings, company websites, financial publications and industry research papers, all sourced responsibly for accuracy, and is provided for informational purposes only and should not be considered investment advice.

**Important Disclaimers:

  • Investing in any individual securities poses risks; this is not advice to engage in said investing.
  • Individual needs, investment objectives, and suitability vary. Consult professionals before decisions.*

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
Full time employees 55000

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 offers 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, retailers, pharmaceutical companies and insurers, 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. The company also provides 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.

Upturn is now on iOS and Android!

Experience Upturn on your mobile. Install it now!​