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With a market cap of $18.5 billion, Quest Diagnostics Incorporated (DGX) is a leading provider of diagnostic testing and services in the United States and internationally. It operates through two business groups - Diagnostic Information Services and Diagnostic Solutions, offering routine and specialized clinical testing, pathology services, and health IT solutions.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Quest Diagnostics fits this criterion perfectly. Headquartered in Secaucus, New Jersey, Quest focuses on accelerating growth through strategic initiatives and driving operational excellence to enhance efficiency and customer value.
Despite a 6.9% decline from its 52-week high of $178.87 reached on Mar. 10, shares of the medical laboratory operator have gained 8.9% over the past three months, outperforming the broader S&P 500 Index’s ($SPX) 5.4% decline over the same time frame.
In the longer term, DGX stock is up 10.5% on a YTD basis, outpacing SPX’s 2.9% dip. Moreover, shares of Quest Diagnostics have surged 29.3% over the past 52 weeks, compared to the 9.8% return of the SPX over the same time frame.
DGX has been trading above its 50-day and 200-day moving averages since last year.
Shares of Quest Diagnostics climbed 5.6% on Jan. 30 after the company reported a strong Q4 2024 earnings release. The company posted adjusted EPS of $2.23 and revenue of $2.6 billion, beating estimates. Investors reacted positively to the 14.5% year-over-year revenue growth, driven by strategic acquisitions like LifeLabs and expansion in advanced diagnostics. Additionally, Quest provided an optimistic 2025 revenue forecast of $10.7 billion to $10.9 billion, exceeding the consensus estimate.
Moreover, DGX has outperformed compared to its rival, Thermo Fisher Scientific Inc. (TMO), which has dropped 9.7% over the past 52 weeks and a 1.3% dip on a YTD basis.
Despite Quest Diagnostics’ strong performance, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 16 analysts covering the stock, and as of writing, it is trading below the mean price target of $178.25.
