Advertisement
U.S. markets close in 5 hours 41 minutes
  • S&P 500

    5,250.12
    +1.63 (+0.03%)
     
  • Dow 30

    39,749.05
    -11.03 (-0.03%)
     
  • Nasdaq

    16,389.26
    -10.26 (-0.06%)
     
  • Russell 2000

    2,123.30
    +8.95 (+0.42%)
     
  • Crude Oil

    82.36
    +1.01 (+1.24%)
     
  • Gold

    2,226.80
    +14.10 (+0.64%)
     
  • Silver

    24.69
    -0.06 (-0.23%)
     
  • EUR/USD

    1.0807
    -0.0022 (-0.21%)
     
  • 10-Yr Bond

    4.2000
    +0.0040 (+0.10%)
     
  • GBP/USD

    1.2637
    -0.0001 (-0.01%)
     
  • USD/JPY

    151.2870
    +0.0410 (+0.03%)
     
  • Bitcoin USD

    70,802.56
    +1,575.49 (+2.28%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,961.77
    +29.79 (+0.38%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Here's Why You Should Sweep Up Quest Diagnostics Right Now

Quest Diagnostics Incorporated DGX has rallied 4.7% over the last year, outperforming the industry's decline of 5.6%. The stock has a market cap of $13.5 billion.The company’s five-year historical growth rate is also favorable at 6.7% compared with 2.8% of the S&P 500 index.

With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick at present. Let’s find out whether the recent positive trend is a sustainable one.

The company has a positive earnings surprise of 6.8% for the last four quarters. Also, it has a long-term expected earnings growth rate of 8.4%.

 

 

The current estimate revision trend is favorable. For the current year, 10 estimates moved north compared with no movement in the opposite direction over the last two months. As a result, the Zacks Consensus Estimate for the full year has risen 11.5% to $6.40 per share.

The market is upbeat about the company’s recently reported fourth-quarter results. The year-over-year increase in adjusted earnings and revenues is encouraging. The companyis also refocusing on its core diagnostic information services business and working on disciplined capital deployment.

Also, investors are looking forward to Quest Diagnostics’ recently-announced definitive agreement to buy a leading national provider of home-based health risk assessments and related services — Mobile Medical Examination Service. The deal is slated to close in the first quarter of 2018.

Moreover, last December, Quest Diagnostics completed the buyout of Shiel Medical Laboratory from Fresenius Medical Care FMS — a healthcare company working on renal and other chronic conditions. The Shiel lab specifically serves the New York-New Jersey area. The latest development is expected to drive Quest Diagnostics’ operational excellence. The takeover is expected to expand the company’s patient service center network in the area.

Other Key Picks

A couple of top-ranked stocks in the broader medical sector are PerkinElmer PKI and Bio-Rad Laboratories BIO.

Bio-Rad Laboratories has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company has a long-term expected earnings growth rate of 25%.

PerkinElmer has a long-term expected earnings growth rate of 12.3%. The stock carries a Zacks Rank #2.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
PerkinElmer, Inc. (PKI) : Free Stock Analysis Report
 
Fresenius Medical Care Corporation (FMS) : Free Stock Analysis Report
 
Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report
 
Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement