How Do Analysts See Quest Diagnostics Incorporated (DGX) Performing In The Year Ahead?
Quest Diagnostics Incorporated (NYSE:DGX)’s sound earnings growth per share is expected to be a single-digit 6.53% over the next year. Presently, with an EPS of $4.898, we can expect an upcoming EPS of $5.218. I am going to look at the latest data on DGX to assess whether this expected growth is reasonable. See our latest analysis for DGX
Exciting times ahead?
Analyst expectation from the stock’s 18 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $4.898 to $5.218 over the next year. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 6.53% over the next 1-2 years. In the same period revenue is predicted to increase from $7,634M $7,856M and profit is predicted to slightly grow from $671M to $728M in upcoming year, roughly staying around the same level. Margins are expected to be muted at a single digit rate of 9.26%.
Is the growth built on solid basis?
The past can be a great indicator for future performance for a stock. We can determine whether this level of expected growth indicates a change in tides or if the company continues to struggle reaching higher growth. The company delivered a growth rate of 2.85% which is indicative of a sustained level of growth – no surprises there for shareholders. This gives us conviction in analysts’ expectations as DGX has already illustrated their ability to grow at this rate.
Next Steps:
For DGX, I’ve compiled three important aspects you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is DGX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether DGX is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of DGX? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
