DGX Stock Analysis — Quest Diagnostics
Sector: Healthcare
AI Verdict
Quest trades at 17.6x next year's earnings while expected to grow EPS by 30.5%—that's cheap for the growth you're getting, and the moat from its lab network and payer ties makes those expectations more credible than most.
Competitive Moat
Quest Diagnostics operates one of the largest clinical laboratory networks in the U.S., with nationwide logistics and payer relationships that make it difficult for new entrants to replicate its scale or insurance integration. Its established contracts with health systems and insurers create high switching costs and recurring demand.
Summary
Quest Diagnostics is notable for its national lab infrastructure, which underpins both volume growth and pricing power.
Where It Stands
Shares are up 20.70% over the past year, trade at 17.6x next year's earnings (below the healthcare median of 22x), and the RSI of 59.2 signals a neutral-to-elevated zone.
Key Metrics
- RSI: 59.2 — Neutral
- Trailing P/E: 23.0x
- Forward P/E: 17.6x
- PEG Ratio: 0.71
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Market Cap: $23.0B
- Dividend Yield: 0.02%
- 1-Year Return: 20.70%
- 52-Week High: $219.20
- 52-Week Low: $164.65
Analyst Consensus
13 Buy · 10 Hold · 0 Sell (23 analysts)
Bull Case
With analysts expecting 30.5% EPS growth and a forward P/E of 17.6x, you're paying a below-average price for above-average earnings momentum.
Bear Case
If the forward P/E reverts to the sector median of 22x after growth moderates, the current discount could evaporate, and an RSI near 60 leaves little room for a technical rally.
Catalyst to Watch
Watch for upcoming quarterly results—if earnings growth comes in below the 30.5% consensus, the valuation discount could quickly disappear.