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Quest Diagnostics (DGX) Flat As Market Gains: What You Should Know

Zacks Equity Research
·3 mins read

Quest Diagnostics (DGX) closed at $116.67 in the latest trading session, marking no change from the prior day. This change lagged the S&P 500's 1.64% gain on the day. At the same time, the Dow added 0.88%, and the tech-heavy Nasdaq gained 2.56%.

Coming into today, shares of the medical laboratory operator had gained 5.58% in the past month. In that same time, the Medical sector gained 2.53%, while the S&P 500 gained 2.44%.

Wall Street will be looking for positivity from DGX as it approaches its next earnings report date. This is expected to be October 22, 2020. In that report, analysts expect DGX to post earnings of $3.66 per share. This would mark year-over-year growth of 107.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.76 billion, up 41.19% from the year-ago period.

DGX's full-year Zacks Consensus Estimates are calling for earnings of $8.74 per share and revenue of $8.70 billion. These results would represent year-over-year changes of +33.23% and +12.56%, respectively.

Any recent changes to analyst estimates for DGX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.87% higher within the past month. DGX is currently a Zacks Rank #3 (Hold).

Digging into valuation, DGX currently has a Forward P/E ratio of 13.36. This represents a discount compared to its industry's average Forward P/E of 40.8.

Investors should also note that DGX has a PEG ratio of 0.78 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Outpatient and Home Healthcare industry currently had an average PEG ratio of 3.28 as of yesterday's close.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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