Although I have been a greatful beneficiary of lh's stock runup over a five year period I kept my eye on DGX for a bisis of comparison. DGX has dropped from 90 to 50 (now 60) as a result of LH's earnings warnings which we now know weren't so bad. Meanwhile DGX posted above forcast earnings as well as a good long term forcast (25% year) and it is still 60. Yes I know that their PE is higher but if you look at the overall picture, its good. I am not going to sell LH and switch but am thinking adding DGX to strengthen my position in healthcare, of maybe buy some option calls, Any thoughts?
Up untill LH warned, DGX and LH were neck & neck, when you compare the two against each others chart.Dgx however will explode with ULAB purchase just like when DGX bought SBCL and then will buy again. See the dgx board.
I think adding Quest would be putting a lot of your eggs in one basket. What affects one will likely affect the other. Maybe a good mutual fund - Vanguard Health or Invesco Health or something like that, or perhaps Merck at a low point, or even J&J...MN