Quest Diagnostics (DGX) AI Stock Analysis

• Market Cap: $20.17B
• Dividend Yield: 1.72%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 21.4
• Beta (1Y): 0.26
• Revenue Growth: 12.58%
• EPS Growth: 13.00%
• Country: US
• Employees: 55,000
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 2.62
• Shares Outstanding: 111,823,440
• 10 Day Avg. Volume: 850,837
• 30 Day Avg. Volume: 1,185,841
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 2.52
• Enterprise Value/Gross Profit: 7.62
• Enterprise Value/Ebitda: 13.76
• 1Y Price Target: $189.00
• Price Target Upside: 5.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Neutral
• Price Target: $188.00 ▲(4.58% 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

Continued strong utilization trends, increased demand, and expansion of enterprise accounts all contributed to growth.

Guidance

Full-year guidance for both revenue and earnings was raised by more than the beats in the second-quarter update.

Negative Factors

Legislative 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 Incorporated provides diagnostic testing, information, and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine testing, 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 patients, clinicians, hospitals, independent delivery networks, health plans, employers, direct contract entities, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile paramedics, nurses, and other health and wellness professionals. The company also provides risk assessment services for the life insurance industry; and healthcare organizations and clinicians robust information technology solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.

How the Company Makes Money

Quest Diagnostics generates revenue primarily through its diagnostic testing services. The company earns money by performing laboratory tests for healthcare providers, hospitals, and patients, billing insurance companies and patients directly for these services. Key revenue streams include routine testing, which constitutes a significant portion of their business, and specialized testing, such as genetic and molecular diagnostics. Additionally, Quest Diagnostics has established partnerships with numerous healthcare organizations and payers, which help to expand their reach and enhance service offerings. The company also derives income from health and wellness programs, providing employers with testing services that promote employee health and manage healthcare costs.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.52B	9.87B	9.25B	9.88B	10.79B	9.44B
Gross Profit	3.48B	3.24B	3.07B	3.43B	4.21B	3.63B
EBITDA	1.93B	1.89B	1.73B	1.82B	3.16B	2.41B
Net Income	949.00M	871.00M	854.00M	946.00M	2.00B	1.43B
Balance Sheet
Total Assets	15.97B	16.15B	14.02B	12.84B	13.61B	14.03B
Cash, Cash Equivalents and Short-Term Investments	319.00M	549.00M	686.00M	315.00M	872.00M	1.16B
Total Debt	6.38B	7.09B	5.50B	4.71B	4.77B	4.81B
Total Liabilities	8.62B	9.26B	7.60B	6.83B	7.05B	7.13B
Stockholders Equity	7.23B	6.78B	6.31B	5.89B	6.44B	6.76B
Cash Flow
Free Cash Flow	1.22B	909.00M	864.00M	1.31B	1.83B	1.59B
Operating Cash Flow	1.68B	1.33B	1.27B	1.72B	2.23B	2.00B
Investing Cash Flow	-2.37B	-2.55B	-1.06B	-543.00M	21.00M	-772.00M
Financing Cash Flow	746.00M	1.08B	160.00M	-1.73B	-2.54B	-1.27B

Quest Diagnostics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 179.76
• 50DMA: Positive
• 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 179.76 is above the 20-day moving average (MA) of 177.57, above the 50-day MA of 174.84, and above the 200-day MA of 166.85, indicating a bullish trend. The MACD of 2.23 indicates Negative momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 30.33 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	79 Outperform	$31.92B	27.20	19.80%	―	3.53%	-10.72%
DGX	70 Neutral	$20.17B	21.36	13.65%	1.72%	12.58%	13.00%
NTRA	70 Neutral	$22.74B	―	-24.32%	―	44.38%	22.87%
ILMN	65 Neutral	$15.17B	12.50	68.11%	―	-3.32%	―
RVTY	61 Neutral	$10.59B	39.10	3.61%	0.31%	3.33%	32.86%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
EXAS	48 Neutral	$8.73B	―	-35.51%	―	12.56%	-464.28%

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.