DGX Stock Analysis — Quest Diagnostics
Sector: Healthcare
AI Verdict
Quest trades at 17.5x next year's earnings with 18.6% growth expected—cheap for the growth if its scale moat keeps volumes steady, but the market is skeptical after a weak run and oversold RSI.
Competitive Moat
Quest Diagnostics operates one of the largest clinical laboratory networks in the U.S., benefiting from scale-driven cost advantages and entrenched relationships with insurers and healthcare providers. Its national logistics and data infrastructure make it difficult for smaller labs to compete on turnaround time and breadth of services.
Summary
RSI of 22.0 signals DGX is deeply oversold, putting it on watch for a technical rebound.
Where It Stands
Quest Diagnostics has delivered a 5.89% 1-year return, trades at 20.7x trailing earnings (below the healthcare sector median of 22x), and its RSI of 22.0 is in oversold territory.
Key Metrics
- RSI: 22 — Oversold
- Trailing P/E: 20.7x
- Forward P/E: 17.5x
- PEG Ratio: 1.01
- Earnings Growth: +0.2%
- Revenue Growth: +0.1%
- Market Cap: $20.7B
- Dividend Yield: 0.02%
- 1-Year Return: 5.89%
- 52-Week High: $213.50
- 52-Week Low: $164.65
Analyst Consensus
13 Buy · 11 Hold · 0 Sell (24 analysts)
Bull Case
At 17.5x forward earnings with analyst consensus for 18.6% EPS growth, you're paying a below-average price for above-average earnings momentum.
Bear Case
If the P/E reverts to the sector median of 22x from its current 20.7x, upside is capped unless growth delivers, and the low RSI could signal a value trap if demand for routine testing keeps sliding.
Catalyst to Watch
Watch for upcoming quarterly results—an upside surprise in test volumes or margin expansion could spark a reversal from oversold levels.