Last Updated: 08 Nov 2024
Executive Summary
Quest Diagnostics Incorporated (DGX) is a leading clinical laboratory provider with a strong financial performance and a positive outlook. The company's fundamentals remain solid, with revenue and earnings growth, strong profitability margins, and a healthy balance sheet. Technically, DGX is trading within a bullish trend and has the potential for further upside. Analysts are generally bullish on the stock, with a majority rating it as a "Hold" or better.
Company Overview
Quest Diagnostics is an American clinical laboratory company that operates in the United States, Puerto Rico, Mexico, and Brazil. The company offers a wide range of diagnostic services, including routine blood tests, genetic testing, and cancer screening. Quest Diagnostics is a Fortune 500 company and has a market capitalization of approximately $17.32 billion.
Fundamental Analysis
Revenue: Quest Diagnostics' revenue has grown steadily in recent years, with a compound annual growth rate (CAGR) of 4.5% over the past five years. The company's revenue for the trailing twelve months (TTM) was $9.54 billion.
Earnings: Quest Diagnostics' earnings per share (EPS) has also grown steadily in recent years, with a CAGR of 6.3% over the past five years. The company's EPS for the TTM was $7.50.
Profitability: Quest Diagnostics' profitability margins are strong. The company's gross profit margin is 36.3%, and its operating profit margin is 14.2%.
Balance Sheet: Quest Diagnostics has a healthy balance sheet with $2.4 billion in cash and equivalents and $3.4 billion in debt. The company's debt-to-equity ratio is 0.46.
Technical Analysis
Trend: DGX is trading within a bullish trend, with the 50-day moving average above the 200-day moving average.
Support and Resistance: The stock has support at $150 and resistance at $160.
Momentum: DGX's momentum indicators are positive, with the relative strength index (RSI) above 50.
Short Term Outlook
Technically, DGX is in a bullish trend and has the potential for further upside. The stock is trading above its 50-day and 200-day moving averages, and the momentum indicators are positive. However, the stock is approaching resistance at $160, which could limit its upside potential in the short term.
Long Term Outlook
The long-term outlook for DGX is positive. The company has a strong financial foundation, with solid revenue and earnings growth, strong profitability margins, and a healthy balance sheet. The company also operates in a growing industry, as demand for clinical laboratory services is expected to increase in the coming years.
Analyst Recommendations
Analysts are generally bullish on DGX. The consensus analyst rating is "Hold," with a price target of $168.85. Five analysts rate the stock as a "Strong Buy," three analysts rate it as a "Buy," 11 analysts rate it as a "Hold," and zero analysts rate it as a "Sell" or "Strong Sell."
