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Quest Diagnostics Incorporated (DGX)



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Upturn Advisory Summary
08/28/2025: 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 -9.94% | Avg. Invested days 37 | 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 20.04B USD | Price to earnings Ratio 21.46 | 1Y Target Price 188.19 |
Price to earnings Ratio 21.46 | 1Y Target Price 188.19 | ||
Volume (30-day avg) 19 | Beta 0.46 | 52 Weeks Range 144.09 - 185.62 | Updated Date 08/28/2025 |
52 Weeks Range 144.09 - 185.62 | Updated Date 08/28/2025 | ||
Dividends yield (FY) 1.72% | Basic EPS (TTM) 8.35 |
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 21.46 | Forward PE 18.45 | Enterprise Value 26103760627 | Price to Sales(TTM) 1.9 |
Enterprise Value 26103760627 | Price to Sales(TTM) 1.9 | ||
Enterprise Value to Revenue 2.49 | Enterprise Value to EBITDA 12.65 | Shares Outstanding 111823000 | Shares Floating 111237486 |
Shares Outstanding 111823000 | Shares Floating 111237486 | ||
Percent Insiders 0.4 | Percent Institutions 99.13 |
Upturn AI SWOT
Quest Diagnostics Incorporated

Company Overview
History and Background
Quest Diagnostics Incorporated was founded in 1967 as Metropolitan Pathology Laboratory, Inc. It was later renamed Corning Clinical Laboratories and spun off from Corning Incorporated in 1996, becoming Quest Diagnostics. Over time, Quest has grown through acquisitions and organic growth, becoming a leading provider of diagnostic testing services.
Core Business Areas
- Diagnostic Information Services: Provides a broad range of diagnostic testing services to physicians, hospitals, managed care organizations, and other healthcare providers. This segment accounts for the majority of Quest's revenue.
Leadership and Structure
The current CEO is James Davis. The organizational structure includes various departments such as operations, finance, IT, and marketing, all reporting to the executive leadership team.
Top Products and Market Share
Key Offerings
- Routine Clinical Testing: Includes blood tests, urine tests, and other common diagnostic tests. Quest is a major provider of these tests. Competitors include Labcorp and smaller regional labs.
- Advanced Diagnostics: Specialized testing in areas like genetics, oncology, and infectious diseases. Includes gene sequencing and cancer diagnostics. Quest and Labcorp lead in this market.
Market Dynamics
Industry Overview
The diagnostic testing industry is driven by factors like aging populations, increasing prevalence of chronic diseases, and advancements in medical technology. The industry is highly competitive and subject to regulatory changes and reimbursement pressures.
Positioning
Quest Diagnostics is a leader in the diagnostic testing industry, known for its extensive network of laboratories and its broad menu of testing services. Its competitive advantages include its scale, brand recognition, and relationships with healthcare providers.
Total Addressable Market (TAM)
The global diagnostics market is estimated to be hundreds of billions of dollars. Quest Diagnostics is well-positioned to capture a significant portion of this TAM through its existing infrastructure and expanding test menu.
Upturn SWOT Analysis
Strengths
- Large network of laboratories
- Broad menu of testing services
- Strong brand recognition
- Established relationships with healthcare providers
- Extensive data analytics capabilities
Weaknesses
- Dependence on reimbursement rates
- Exposure to regulatory changes
- High capital expenditures for lab equipment
- Price competition from smaller labs
- Vulnerable to data breaches
Opportunities
- Expanding into new markets
- Developing new testing technologies
- Acquiring smaller labs
- Partnering with healthcare providers
- Increasing use of data analytics
Threats
- Decreasing reimbursement rates
- Increased competition
- Technological obsolescence
- Data breaches
- Economic downturns
Competitors and Market Share
Key Competitors
- LH
- DGX
- BIO
Competitive Landscape
Quest Diagnostics faces intense competition from Labcorp and other diagnostic testing providers. Quest's competitive advantages include its scale, brand recognition, and relationships with healthcare providers. However, Quest also faces challenges from decreasing reimbursement rates and increased competition.
Major Acquisitions
Haystack Health
- Year: 2022
- Acquisition Price (USD millions): 50
- Strategic Rationale: Strengthen Quest's consumer-initiated testing offerings.
Growth Trajectory and Initiatives
Historical Growth: Quest Diagnostics has grown steadily over the past few years, driven by both organic growth and acquisitions.
Future Projections: Analysts expect Quest Diagnostics to continue to grow at a moderate pace in the future. Growth is expected to be driven by factors like aging populations, increasing prevalence of chronic diseases, and advancements in medical technology.
Recent Initiatives: Recent initiatives include expanding into new markets, developing new testing technologies, and acquiring smaller labs.
Summary
Quest Diagnostics is a strong player in the diagnostic testing industry, benefiting from its scale and brand. Its financial performance is stable, though reimbursement rates remain a challenge. The company needs to focus on innovation and strategic acquisitions to maintain its competitive edge. Data breaches continue to be a threat that they must invest in to avoid.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Market Research Reports
- Analyst Estimates
Disclaimers:
This analysis is for informational purposes only and should not be considered investment advice. Market share data and financial information are estimates based on available information and may not be exact.
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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