Quest Diagnostics (DGX) AI Stock Analysis

• Market Cap: $19.38B
• Dividend Yield: 1.81%
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.24
• Revenue Growth: 12.58%
• EPS Growth: 13.00%
• Country: US
• Employees: 55,000
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 2.62
• Shares Outstanding: 111,823,440
• 10 Day Avg. Volume: 1,396,475
• 30 Day Avg. Volume: 1,207,190
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 7.62
• Enterprise Value/Ebitda: 13.76
• 1Y Price Target: $188.60
• Price Target Upside: 9.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 70 Neutral
• Price Target: $188.00 ▲(9.02% Upside)

Quest Diagnostics receives a strong overall score driven by solid financial performance and positive earnings call sentiment. The company exhibits healthy profitability and cash flow, boosted by successful acquisitions and operational improvements. However, mixed revenue growth and moderate technical indicators slightly temper the outlook.

Positive Factors

Earnings

Quest Diagnostics reported strong second-quarter results with sales and adjusted earnings per share exceeding expectations, driven by significant revenue growth through healthcare provider channels and expanded payer access.

Growth

Quest Diagnostics is experiencing increased volume and utilization from expanded payer access and new client growth.

Market Confidence

Analysts remain constructive on Quest Diagnostics shares, highlighting robust core business results that can counteract potential headwinds.

Negative Factors

Legislation Impacts

The outlook over the near- and long-term remains intact despite potential headwinds from legislative impacts.

Regulatory Challenges

Potential macro changes tied to eroding Medicaid/HIX volumes are seen as potential headwinds for DGX.

Quest Diagnostics Business Overview & Revenue Model

Company Description

Quest Diagnostics (DGX) is a leading provider of diagnostic information services in the United States. The company operates in the healthcare sector, focusing on offering a wide range of diagnostic testing services, including routine testing, non-routine and specialized testing, and esoteric testing. Quest Diagnostics serves various clients, including patients, physicians, hospitals, employers, and health insurance companies, playing a crucial role in enhancing patient care and improving healthcare outcomes.

How the Company Makes Money

Quest Diagnostics generates revenue primarily through the provision of diagnostic testing services. The company's revenue model is based on performing laboratory tests on specimens sent by healthcare providers, employers, and patients. Key revenue streams include routine clinical testing, which encompasses a wide variety of tests that are commonly prescribed by physicians. Additionally, Quest Diagnostics offers esoteric testing, which involves more complex and specialized tests that require advanced technologies. Another significant source of revenue is anatomic pathology services, which include the examination of tissue samples. The company also partners with hospitals and clinics to manage their laboratory operations, providing both in-house testing services and access to Quest's extensive network. Moreover, Quest Diagnostics benefits from strategic partnerships with healthcare providers and organizations, which help expand its service offerings and market reach.

Quest Diagnostics Financial Statement Overview

Summary

Quest Diagnostics presents a solid financial profile with strong profitability and efficient cash flow management. While revenue growth has been mixed, the company maintains a healthy operational structure with strong margins. The balance sheet indicates moderate leverage, which should be monitored to avoid potential risks. Overall, Quest Diagnostics is well-positioned but would benefit from improved revenue growth consistency.

Income Statement

Quest Diagnostics shows strong profitability with a stable gross profit margin of approximately 33% and a net profit margin of 12.04% TTM. However, revenue growth has been inconsistent, with a slight decline from 2022 to 2024, but a positive uptick in 2025. The EBIT and EBITDA margins are healthy, reflecting efficient operations, but there is room for improvement in revenue growth consistency.

Balance Sheet

The company's balance sheet is moderately leveraged with a debt-to-equity ratio of 0.88 TTM. The equity ratio of 45.27% indicates a stable equity base, but the increasing debt levels over the years may pose potential risks. Return on equity is strong at 17.53% TTM, showing effective use of equity to generate profits.

Cash Flow

Quest Diagnostics demonstrates robust cash flow management with a consistent operating cash flow and a free cash flow to net income ratio of 0.97 TTM, indicating efficient cash conversion. Free cash flow growth is strong, though it has fluctuated in the past amid capital expenditures and financing activities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.87B	9.25B	9.88B	10.79B	9.44B
Gross Profit	3.24B	3.07B	3.43B	4.21B	3.63B
EBITDA	1.89B	1.73B	1.82B	3.16B	2.41B
Net Income	871.00M	854.00M	946.00M	2.00B	1.43B
Balance Sheet
Total Assets	16.15B	14.02B	12.84B	13.61B	14.03B
Cash, Cash Equivalents and Short-Term Investments	549.00M	686.00M	315.00M	872.00M	1.16B
Total Debt	7.09B	5.50B	4.71B	4.77B	4.81B
Total Liabilities	9.26B	7.60B	6.83B	7.05B	7.13B
Stockholders Equity	6.78B	6.31B	5.89B	6.44B	6.76B
Cash Flow
Free Cash Flow	909.00M	864.00M	1.31B	1.83B	1.59B
Operating Cash Flow	1.33B	1.27B	1.72B	2.23B	2.00B
Investing Cash Flow	-2.55B	-1.06B	-543.00M	21.00M	-772.00M
Financing Cash Flow	1.08B	160.00M	-1.73B	-2.54B	-1.27B

Quest Diagnostics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 172.44
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DGX, the sentiment is Positive. The current price of 172.44 is above the 20-day moving average (MA) of 169.71, below the 50-day MA of 173.30, and above the 200-day MA of 164.66, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 53.79 is Neutral, neither overbought nor oversold. The STOCH value of 50.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DGX.

Quest Diagnostics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IQV	72 Outperform	$31.27B	25.71	19.80%	―	3.53%	-10.72%
DGX	70 Neutral	$19.38B	20.72	13.65%	1.81%	12.58%	13.00%
ILMN	67 Neutral	$0.00	12.38	68.11%	―	-3.32%	―
NTRA	64 Neutral	$19.13B	―	-18.66%	―	51.50%	53.23%
Sector *	63 Neutral	€5.97B	18.62	-1.87%	2.13%	0.91%	-39.98%
RVTY	63 Neutral	$0.00	37.45	3.70%	0.32%	3.33%	―
EXAS	54 Neutral	$8.93B	―	-36.89%	―	11.57%	-315.25%

Quest Diagnostics Corporate Events

Quest Diagnostics Elects Directors at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on May 15, 2025, Quest Diagnostics announced the election of several directors for terms expiring at the 2026 Annual Meeting. The meeting also saw the approval of executive officer compensation and the ratification of PricewaterhouseCoopers as the independent registered public accounting firm for 2025. However, a stockholder proposal regarding calling a special meeting of stockholders was not approved.

The most recent analyst rating on (DGX) stock is a Buy with a $177.00 price target. To see the full list of analyst forecasts on Quest Diagnostics stock, see the DGX Stock Forecast page.