DGX Stock Analysis: Quest Diagnostics | NYSE
Diagnostics & Research | NYSE, USA | Market Cap: 26.852m USD | 12M Return: 34.2% | US74834L1008 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 246M
EPS Trend: 96.0%
Qual. Beats: 8
Rev. Trend: 99.2%
Qual. Beats: 6
Warnings
No concerns identified
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Quest Diagnostics Incorporated (NYSE: DGX) is a U.S.-based provider of diagnostic testing and related information services, operating one of the largest clinical laboratory networks in the country. Founded in 1967 and headquartered in Secaucus, New Jersey, the company offers routine, non-routine, and advanced clinical testing, anatomic pathology, and a broad portfolio of specialty diagnostics spanning cardiometabolic, oncology, infectious disease, neurology (including Alzheimers), and womens and prenatal health. It serves physicians, hospitals, patients, health plans, government agencies, employers, insurers, pharmaceutical companies, and accountable care organizations through a nationwide infrastructure of laboratories, patient service centers, mobile phlebotomists, and call centers. The company markets its services under multiple brands, including Quest Diagnostics, AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum, and extends beyond clinical testing into life-insurance risk assessment, healthcare IT and digital health connectivity, workplace drug screening, employer population health services, and in vitro diagnostic test development.
The diagnostic laboratory industry operates on a high-volume, network-driven business model in which scale, logistics infrastructure, and relationships with payers and providers are key competitive advantages. Reimbursement is typically fragmented across commercial insurers, Medicare and Medicaid, employer contracts, and direct-pay channels, which makes pricing and coverage policy material to operating performance. The sector is highly consolidated, with Quest Diagnostics and Laboratory Corporation of America (LabCorp) historically representing the two largest U.S. players.
- COVID testing revenue decline pressures total growth
- Base business volumes and advanced diagnostics boost margins
- Acquisitions expand specialty testing and geographic reach
| Net Income: 1.13b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -0.62 > 1.0 |
| NWC/Revenue: 10.84% < 20% (prev 2.52%; Δ 8.32% < -1%) |
| CFO/TA 0.11 > 3% & CFO 1.95b > Net Income 1.13b |
| Net Debt (6.23b) to EBITDA (2.30b): 2.70 < 3 |
| Current Ratio: 1.70 > 1.5 & < 3 |
| Outstanding Shares: last quarter (112.0m) vs 12m ago -0.88% < -2% |
| Gross Margin: 33.15% > 18% (prev 33.30%; Δ -0.15% > 0.5%) |
| Asset Turnover: 70.87% > 50% (prev 66.99%; Δ 3.88% > 0%) |
| Interest Coverage Ratio: 6.76 > 6 (EBIT TTM 1.72b / Interest Expense TTM 254.0m) |
| A: 0.07 (Total Current Assets 3.12b - Total Current Liabilities 1.83b) / Total Assets 17.2b |
| B: 0.62 (Retained Earnings 10.6b / Total Assets 17.2b) |
| C: 0.10 (EBIT TTM 1.72b / Avg Total Assets 16.7b) |
| D: 0.83 (Book Value of Equity 7.63b / Total Liabilities 9.19b) |
| Altman-Z'' = 4.06 = AA |
| DSRI: 1.08 (Receivables 1.71b/1.46b, Revenue 11.8b/10.8b) |
| GMI: 1.00 (GM 33.30% / 33.15%) |
| AQI: 0.95 (AQ_t 0.65 / AQ_t-1 0.68) |
| SGI: 1.09 (Revenue 11.8b / 10.8b) |
| TATA: -0.05 (NI 1.13b - CFO 1.95b) / TA 17.2b) |
| Beneish M = -2.92 (Cap -4..+1) = A |
As of October 24, 2026, the stock is trading at USD 241.89 with a total of 933,272 shares traded. Over the past week, the price has changed by +2.93%, over one month by +4.20%, over three months by +6.53% and over the past year by +34.23%.
Current recommended Stop Loss: 233.90 (which is 3.3% or 1.2 ATR below the current price).
Quest Diagnostics has received a consensus analysts rating of 3.94. Therefore, it is recommended to buy DGX.
- StrongBuy: 7
- Buy: 2
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 251.7 | 4.1% |
P/E Trailing = 25.8259
P/E Forward = 19.5313
P/S = 2.3228
P/B = 3.4475
P/EG = 1.5271
Revenue TTM = 11.8b USD
EBIT TTM = 1.72b USD
EBITDA TTM = 2.30b USD
Long Term Debt = 5.17b USD (from longTermDebt, last fiscal year)
Short Term Debt = 191.0m USD (from shortTermDebt, last quarter)
Debt = 7.03b USD (from shortLongTermDebtTotal, last quarter) + Leases 741.0m
Net Debt = 6.23b USD (calculated: Debt 7.03b - CCE 797.0m)
Enterprise Value = 33.1b USD (26.9b + Debt 7.03b - CCE 797.0m)
Interest Coverage Ratio = 6.76 (Ebit TTM 1.72b / Interest Expense TTM 254.0m)
EV/FCF = 24.06x (Enterprise Value 33.1b / FCF TTM 1.38b)
FCF Yield = 4.16% (FCF TTM 1.38b / Enterprise Value 33.1b)
FCF Margin = 11.61% (FCF TTM 1.38b / Revenue TTM 11.8b)
Net Margin = 9.53% (Net Income TTM 1.13b / Revenue TTM 11.8b)
Gross Margin = 33.15% ((Revenue TTM 11.8b - Cost of Revenue TTM 7.92b) / Revenue TTM)
Gross Margin QoQ = 33.65% (prev 33.75%)
Tobins Q-Ratio = 1.92 (Enterprise Value 33.1b / Total Assets 17.2b)
Interest Expense / Debt = 3.62% (Interest Expense 254.0m / Debt 7.03b)
Taxrate = 22.82% (342.0m / 1.50b)
NOPAT = 1.33b (EBIT 1.72b * (1 - 22.82%))
Current Ratio = 1.70 (Total Current Assets 3.12b / Total Current Liabilities 1.83b)
Debt / Equity = 0.92 (Debt 7.03b / totalStockholderEquity, last quarter 7.63b)
Debt / EBITDA = 2.70 (Net Debt 6.23b / EBITDA 2.30b)
Debt / FCF = 4.53 (Net Debt 6.23b / FCF TTM 1.38b)
Total Stockholder Equity = 7.42b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.76% (Net Income 1.13b / Total Assets 17.2b)
RoE = 15.21% (Net Income TTM 1.13b / Total Stockholder Equity 7.42b)
RoCE = 13.65% (EBIT 1.72b / Capital Employed (Equity 7.42b + L.T.Debt 5.17b))
RoIC = 8.85% (NOPAT 1.33b / Invested Capital 15.0b)
WACC = 4.82% (E(26.9b)/V(33.9b) * Re(5.35%) + D(7.03b)/V(33.9b) * Rd(3.62%) * (1-Tc(0.23)))
Discount Rate = 5.35% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -52.22 | Cagr: 0.0%
[DCF] Terminal Value 75.26% ; FCFF base≈1.38b ; Y1≈1.37b ; Y5≈1.42b
[DCF] Fair Price = 144.6 (EV 22.2b - Net Debt 6.23b = Equity 16.0b / Shares 110.4m; r=8.35% [WACC [floored]]; 5y FCF grow -1.29% → 2.50% )
EPS Correlation: 96.04 | EPS CAGR: 9.12% | SUE: 1.67 | # QB: 8
Revenue Correlation: 99.17 | Revenue CAGR: 10.36% | SUE: 2.17 | # QB: 6
EPS current Quarter (2027-03-31): EPS=2.76 | Chg30d=-0.26% | Revisions=+44% | Analysts=10
EPS current Year (2026-12-31): EPS=11.20 | Chg30d=+0.05% | Revisions=+17% | GrowthEPS=+13.7% | GrowthRev=+8.9%
EPS next Year (2027-12-31): EPS=12.04 | Chg30d=-0.18% | Revisions=-12% | GrowthEPS=+7.5% | GrowthRev=+4.6%
[Analyst] Revisions Ratio: +24% (up=9, down=5)