/Quest%20Diagnostics%2C%20Inc_%20sign-%20by%20Sundry%20Photogreaphy%20via%20Shutterstock.jpg)
Valued at $17 billion by market cap, Quest Diagnostics Incorporated (DGX) is a prominent provider of diagnostic testing services. The Secaucus, New Jersey-based company specializes in providing a broad range of diagnostic information services, including clinical testing and risk assessment solutions, both in the U.S. and internationally.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and DGX effortlessly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the diagnostics and research industry.
It is a market leader in the diagnostic information services sector, known for its reliability and quality. Its extensive network of laboratories and patient service centers enhances access to clinical testing across the U.S., while a large in-house team of medical and scientific experts bolsters its brand reputation and customer loyalty.
DGX has retreated 4% from its 52-week high of $159.36, achieved on Sept. 4. Over the past three months, DGX stock has soared 10.7%, outperforming the Health Care Select Sector SPDR Fund’s (XLV) 6.1% gains during the same time frame.
In the longer term, shares of DGX are up 11% on a YTD basis and have climbed 22.4% over the past 52 weeks. In contrast, XLV returned YTD gains of 13.9% and 18% over the last year.
To confirm the bullish trend, DGX has traded above its 50-day moving average since the end of July and over its 200-day moving average since mid-April.
DGX announced its Q2 earnings on Jul 23, and its shares declined by 4.3% despite beating market expectations and raising full-year projections. Worries about a decrease in gross profit margins and slower-than-anticipated revenue growth drove this drop. Furthermore, investor caution regarding the upcoming acquisition of LifeLabs contributed to the overall uncertainty.
In the competitive arena of diagnostics & research, Thermo Fisher Scientific Inc. (TMO) has taken the lead over DGX, showing resilience with a 15.6% uptick on a YTD basis. However, over the past year, DGX has slightly surpassed TMO’s 21.6% returns.
Wall Street analysts are moderately bullish on DGX’s prospects. The stock has a consensus “Moderate Buy” rating from the 15 analysts covering it, and the mean price target of $155.07 suggests a potential upside of 1.4% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
