Quest Diagnostics Inc (DGX) Stock Analysis
Verdict: HOLD
Quest's operational rebound is fully priced at 52-week highs, creating asymmetric downside risk from impending Medicare reimbursement cuts.
Investment score: 54/100
Analysis as of
Is Quest Diagnostics Inc stock worth reviewing? AI model thesis
The model views Quest Diagnostics as a high-quality defensive compounder that has reached fair value. A 31.9% price rally over 90 days has pushed the stock to 247.58 USD, fully reflecting recent hospital outreach M&A gains. With zero analyst upside to the average price target ($246.67) and persistent executive selling, the model maintains a HOLD rating.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 70/100 (weight 15%)
- Technical Momentum: 75/100 (weight 15%)
- Earnings Quality: 85/100 (weight 15%)
- Insider Sentiment: 20/100 (weight 10%)
- Analyst Consensus: 40/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
Quest Diagnostics Inc opportunities and risks
What speaks for DGX
- Hospital Laboratory Outreach M&A Roll-up
What speaks against DGX
- Impending Medicare Reimbursement Cuts (PAMA)
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| DGX | 25.9x | 2.4x | 16.5x | 33.1% | 9.2% | 4.5% |
| CVS | 23.8x | 0.3x | 13.5x | 14.2% | 1.2% | 10.1% |
| CI | 11.5x | 0.3x | 8.4x | 11.7% | 2.3% | 12.4% |
| LH | 26.5x | 1.8x | 15.4x | 27.8% | 7.0% | 4.4% |
| GH | n/a | 20.5x | n/a | 65.0% | -38.3% | -1.0% |
| LH | 26.5x | 1.8x | 15.4x | 27.8% | 7.0% | 4.4% |
| Peer median | 23.8x | 1.8x | 13.5x | 27.8% | 2.3% | 4.4% |
Frequently asked questions about Quest Diagnostics Inc (DGX)
Is DGX stock a good investment?
The cached TradeMates AI model rates Quest Diagnostics Inc as HOLD with an investment score of 54/100. The model views Quest Diagnostics as a high-quality defensive compounder that has reached fair value. A 31.9% price rally over 90 days has pushed the stock to 247.58 USD, fully reflecting recent hospital outreach M&A gains. With zero analyst upside to the average price target ($246.67) and persistent executive selling, the model maintains a HOLD rating. This is algorithmic model output, not personal investment advice.
Is DGX stock a buy?
The TradeMates model verdict for DGX is HOLD with an investment score of 54/100. Treat this as a model signal to review, not a personal buy recommendation.