Quest Diagnostics (DGX)

Health Care · $28.1B market cap · SEC CIK 0001022079

Next reports on Feb 8, 2027, after the close, with analysts expecting $2.71 in earnings per share.

52-week range $171.18 to $259.84. 1% below its 52-week high and 51% above its low.

The case for DGX

• Revenue growing 9.1% year over year.
• Return on equity of 15%.
• Moves less than the market (beta 0.51).
• Pays a modest 2.1% dividend.
• Within 1% of its 52-week high: the trend is up.
• Up 44.7% over the past year.

The case against

• Expensive for its growth: 24.8× earnings, where 3% a year of growth plus a 2.1% dividend would justify about 16×.
• Growth is weak (35/100): revenue +9.1%, EPS +18.0%, +3.2% a year over five years.
• Long-term debt of $5.2B against $420M of cash.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.

The financials

The financials, five years deep

Pulled from Quest Diagnostics's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Quest Diagnostics says it does

INTRODUCTION Quest Diagnostics works across the healthcare ecosystem to create a healthier world, one life at a time. We provide diagnostic insights from the results of our laboratory testing to empower people, physicians, and organizations to take action to improve health outcomes. Derived from one of the world's largest databases of de-identifiable clinical lab results, our diagnostic insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve healthcare management. In the right hands and with the right context, our diagnostic insights can inspire actions that transform lives and create a healthier world. The patients we serve annually comprise approximately one-third of the adult population of the United States, and over a three-year period, we serve approximately one-half of the adult population of the United States. We estimate that annually we serve approximately half of the physicians and…

Risk factors DGX lists in its 10-K

• The U.S. healthcare system continues to evolve, and medical laboratory testing market fundamentals are changing, and our business could be adversely impacted if we fail to adapt
• Government payers, such as Medicare and Medicaid, have taken steps to reduce the utilization and reimbursement of healthcare services, including clinical testing services
• Health plans and other third parties have taken steps to reduce the utilization and reimbursement of health services, including clinical testing services
• Failure to develop, acquire licenses for, introduce, or commercialize new tests, technology and services could negatively impact our testing volume, revenues and profitability
• Significant changes or developments in U.S. laws or policies, including changes in U.S. healthcare regulation, may have a material adverse effect on our business
• We are subject to numerous legal and regulatory requirements governing our activities, and we may face substantial fines and penalties, and our business activities may be impacted, if we fail to comply
• Our business and operations could be adversely impacted by the FDA's approach to regulation
• Failure to accurately bill for our services, or to comply with applicable laws relating to billing government healthcare programs, could have a material adverse effect on our business
• We are subject to numerous political (including geopolitical), legal, operational and other risks as a result of our international operations which could impact our business in many ways
• We may be unable to obtain, maintain or enforce our intellectual property rights and may be subject to intellectual property litigation that could adversely impact our business
• Adverse results in material litigation could have an adverse financial impact and an adverse impact on our client base and reputation
• Our outstanding debt may impair our financial and operating flexibility
• Our business could be negatively affected if we are unable to continue to strengthen our efficiency
• Our business operations and reputation may be materially impaired if we do not comply with privacy laws or information security policies
• Our approach to corporate responsibility may not satisfy all our stakeholders
• The IT systems that we rely on may be subject to unauthorized tampering, cyberattack or other security breach
• Our ability to attract and retain qualified employees and maintain good relations with our employees is critical to the success of our business and the failure to do so may materially adversely affect our performance
• Business development activities are inherently risky and integrating our operations with businesses we acquire may be difficult
• Any future public health emergencies or pandemics may negatively affect us, including through its impact on the labor force and supply chain
• Inflationary pressures could adversely impact us because of increases in the costs of materials, supplies and services, and increased labor and people-related expenses

Filings

Other Health Care companies