DGX Stock Analysis — Quest Diagnostics
Sector: Healthcare
AI Verdict
DGX trades at 20.1x next year's earnings with 25.8% growth expected—cheap for the growth if its scale-driven moat keeps competitors at bay, but the overbought RSI means near-term downside risk is real.
Competitive Moat
Quest Diagnostics operates one of the largest clinical laboratory networks in the U.S., giving it scale advantages in logistics, payer negotiations, and test menu breadth. Its entrenched relationships with hospitals and insurers create high switching costs and recurring demand for diagnostic services.
Summary
DGX is on watch as its forward P/E drops to 20.1x while analysts expect a 25.8% jump in earnings next year.
Where It Stands
Shares are up 32.8% over the past year, the RSI is an elevated 74.9 (overbought), and the stock trades at 20.1x forward earnings versus a healthcare sector median of 22x.
Key Metrics
- RSI: 74.9 — Overbought
- Trailing P/E: 25.3x
- Forward P/E: 20.1x
- PEG Ratio: 0.98
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Market Cap: $26.2B
- Dividend Yield: 0.01%
- 1-Year Return: 32.80%
- 52-Week High: $240.13
- 52-Week Low: $171.18
Analyst Consensus
13 Buy · 10 Hold · 0 Sell (23 analysts)
Bull Case
With forward EPS growth forecast at 25.8% and a forward P/E of 20.1x, you're getting above-average earnings expansion for a lower-than-average sector multiple.
Bear Case
The RSI at 74.9 signals overbought territory, so a pullback to a neutral RSI could mean a 10–15% drop even if fundamentals hold steady.
Catalyst to Watch
Quarterly earnings beats or misses that confirm or challenge the 25.8% EPS growth expectation will likely drive the next move.