Quest Diagnostics Incorporated (DGX), headquartered in Secaucus, New Jersey, offers diagnostic testing and services globally. Valued at $19.1 billion by market cap, the company operates a national network of full-service laboratories, rapid response laboratories, and patient service centers. DGX offers esoteric, routine medical, drugs of abuse, and non-hospital-based anatomic pathology testing services.
Shares of this leading diagnostic testing & services provider have outperformed the broader market over the past year. DGX has gained 35.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. In 2025, DGX stock is up 14.2%, surpassing SPX’s 2.2% rise on a YTD basis.
Zooming in further, DGX’s outperformance is also apparent compared to SPDR S&P Health Care Services ETF (XHS). The exchange-traded fund has gained about 10.4% over the past year. Moreover, DGX’s double-digit returns on a YTD basis outshine the ETF’s 4.9% gains over the same time frame.
DGX's outperformance is driven by consistent demand, focus on innovation in advanced diagnostics, strategic acquisitions like LifeLabs, expansion of its product portfolio, and operational efficiency. The company's expansion into high-growth areas like genomics and oncology, coupled with its digital health initiatives, has boosted financial performance. Its recent acquisition, Quest Management System, and the expansion of its platform, QuestHealth.com with 135 consumer-initiated tests have enhanced efficiency and aligned with consumer-driven healthcare trends.
On Jan. 30, DGX shares closed up more than 5% after reporting its Q4 results. Its adjusted EPS of $2.23 surpassed Wall Street expectations of $2.19. The company’s revenue was $2.62 billion, topping Wall Street forecasts of $2.57 billion. DGX expects full-year adjusted EPS to be between $9.55 and $9.80, and expects revenue to be between $10.7 billion and $10.9 billion.
For fiscal 2025, ending in December, analysts expect DGX’s EPS to grow 8.6% to $9.70 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 16 analysts covering DGX stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, and seven “Holds.”
This configuration is more bullish than two months ago, with eight analysts suggesting a “Strong Buy.”
On Feb. 3, Mizuho Financial Group, Inc. (MFG) kept an “Outperform” rating on DGX and raised the price target to $178, implying a potential upside of 3.3% from current levels.
The mean price target of $178.12 represents a 3.4% premium to DGX’s current price levels. The Street-high price target of $190 suggests an upside potential of 10.3%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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