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

Zacks Equity Research
·3 min read

In the latest trading session, Quest Diagnostics (DGX) closed at $123.63, marking a +0.54% move from the previous day. This change outpaced the S&P 500's 0.66% loss on the day. Meanwhile, the Dow lost 0.29%, and the Nasdaq, a tech-heavy index, lost 1.25%.

Heading into today, shares of the medical laboratory operator had lost 1.99% over the past month, lagging the Medical sector's gain of 1.53% and the S&P 500's gain of 3.42% in that time.

DGX will be looking to display strength as it nears its next earnings release. In that report, analysts expect DGX to post earnings of $4.09 per share. This would mark year-over-year growth of 144.91%. Meanwhile, our latest consensus estimate is calling for revenue of $2.88 billion, up 49.6% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for DGX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.25% higher within the past month. DGX is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, DGX currently has a Forward P/E ratio of 11.55. For comparison, its industry has an average Forward P/E of 34.15, which means DGX is trading at a discount to the group.

Also, we should mention that DGX has a PEG ratio of 0.44. 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. DGX's industry had an average PEG ratio of 3.16 as of yesterday's close.

The Medical - Outpatient and Home Healthcare industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 33% 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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Zacks Investment Research