Quest Diagnostics Outshines Market With Strong Performance and Growth Potential
Quest Diagnostics Incorporated (DGX), based in Secaucus, New Jersey, provides comprehensive diagnostic testing and services around the world. Currently valued at $19.1 billion by market capitalization, the company features a national network of full-service laboratories, rapid response laboratories, and patient service centers. DGX specializes in esoteric and routine medical tests, substance abuse screenings, and non-hospital-based anatomic pathology testing services.
In the past year, DGX’s stock has significantly outperformed the broader market. Rising by 35.9%, the company has delivered impressive returns, while the S&P 500 Index ($SPX) increased nearly 20.7%. Looking at year-to-date performance in 2025, DGX has appreciated 14.2%, compared to SPX’s modest 2.2% rise.
Further analysis highlights DGX’s superior performance when compared to the SPDR S&P Health Care Services ETF (XHS), which has seen a gain of approximately 10.4% over the past year. Additionally, on a year-to-date basis, DGX’s double-digit returns significantly surpass the ETF’s gains of 4.9%.
The robust performance of DGX can be attributed to strong demand for its services, ongoing innovation in advanced diagnostics, strategic acquisitions like LifeLabs, and improvements in operational efficiency. The company is also expanding into dynamic sectors such as genomics and oncology, along with digital health initiatives that have notably improved its financial results. Notably, its acquisition of Quest Management System and the introduction of 135 new consumer-initiated tests through QuestHealth.com aligns perfectly with current healthcare trends focused on consumer empowerment.
After releasing its Q4 results on January 30, DGX shares increased by more than 5%. The company reported an adjusted EPS of $2.23, which exceeded Wall Street’s expectation of $2.19. Additionally, revenue reached $2.62 billion, beating expectations of $2.57 billion. For the full year, DGX anticipates its adjusted EPS to range between $9.55 and $9.80 and revenue between $10.7 billion and $10.9 billion.
For the fiscal year 2025, set to conclude in December, analysts forecast an 8.6% growth in EPS to $9.70 on a diluted basis. Impressively, the company has consistently surpassed earnings expectations, beating the consensus estimate in the last four quarters.
Of the 16 analysts covering DGX stock, the consensus rating is a “Moderate Buy,” comprising nine “Strong Buy” ratings and seven “Holds.”
This outlook has become more favorable in the past two months, with eight analysts now suggesting a “Strong Buy.” On February 3, Mizuho Financial Group, Inc. (MFG) maintained an “Outperform” rating on DGX and raised the price target to $178, indicating a potential upside of 3.3% from current prices.
The mean price target of $178.12 reflects a 3.4% premium to DGX’s existing price levels. The highest price target set at $190 implies an upside potential of 10.3%.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information in this article is intended for informational purposes only. For complete details, please refer to the Barchart Disclosure Policy here.
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