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Quest Diagnostics NYSE:DGX Stock Report

Last Price


Market Cap







02 Oct, 2022


Company Financials +
DGX fundamental analysis
Snowflake Score
Future Growth1/6
Past Performance3/6
Financial Health4/6

DGX Stock Overview

Quest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally.

Quest Diagnostics Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Quest Diagnostics
Historical stock prices
Current Share PriceUS$122.69
52 Week HighUS$174.16
52 Week LowUS$120.40
1 Month Change-1.95%
3 Month Change-10.24%
1 Year Change-14.38%
3 Year Change17.13%
5 Year Change32.75%
Change since IPO3,405.43%

Recent News & Updates

Sep 15

Quest Diagnostics: The Market Is Overlooking Long-Term Prospects

Summary Quest Diagnostics has been a pillar in my “Healthy Dividends” portfolio thanks to a safe dividend and long-term growth prospects. Quest has been a key player in the battle against COVID-19 thanks to their ability to handle high testing demand. "Peak COVID" is presumably in the rearview, so COVID-19 testing demand has dropped along with DGX's share price. I believe the market has taken the "COVID-Fade" too far. I am going to disregard the short-term decrease in earnings and will focus on the company’s impressive long-term growth trends and the ticker’s attractive valuation. I discuss my valuations for DGX and my plan for managing the position in the coming years. Quest Diagnostics (DGX) has been a longstanding position in my “Healthy Dividends” portfolio thanks to a safe dividend and long-term growth prospects. This position has grown in size and value thanks to Quest being a mainstay in the battle against COVID-19 with their molecular testing demand generating significant revenue growth during the peak of the pandemic. Now, that the worst of the pandemic is presumably in the rearview, we have to anticipate a drop in COVID-19 testing demand, which could lead to Quest reporting year-over-year decreases in earnings. Obviously, the market loves to promote tickers that report growth and will punish those who report decaying earnings. Therefore, investors should not be surprised by the market’s treatment of DGX, which is down roughly 25% from its January high. For me, I am focusing on the company’s impressive long-term growth trends and the ticker’s attractive valuation. I intend to review the company’s long-term growth trends and their future growth prospects. In addition, I discuss the ticker’s attractive valuation. Finally, I reveal my plan to manage my DGX position over the next year. Interpreting the Recent Trends As I mentioned in my introduction, Quest is expected to be reporting year-over-year decreases in revenue and earnings as the COVID-19 pandemic continues to slow down and testing demand will likely go with it. Looking at the company’s Q2 earnings, we can see some evidence of the expected year-over-year regressions already. In Q2, Quest recorded $2.5B in total revenues with earnings per share coming in at $1.96 compared to $4.96 in Q2 of last year. Quest’s adjusted EPS was $2.36 verse $3.18 last year. The company’s reported operating income in Q2 was $388M, which was 15.8% of their revenue. However, this is down from $533M in Q2 of last year, which was about 20.9% of their revenue. The company attributes these declines as a result of lower COVID-19 testing volume. In fact, the company reported that COVID-19 testing revenues were around $355M, down about 31% from Q2 2021 and 41% from Q1 of 2022. I would argue that although the company is reporting a year-over-year decrease in earnings, the fact remains that Quest is still on an upward trajectory in comparison to their pre-pandemic performance. The market is reacting as if the year-over-year decreases are indicative of the company’s core business and long-term prospects. I will point to the company’s earnings history which shows that the company’s recent earnings are still better than pre-pandemic earnings. Quest Earnings History (Seeking Alpha) Looking at the figure above, we can see that Quest is reporting superior EPS and revenues than pre-COVID, yet, the market is looking to bring the share price down to April 2020 levels. I believe the market is taken this "COVID-Fade" too far on DGX. Indeed, the market is "forward-looking" and the demand for COVID-19 testing is overall slowing. However, the market is overlooking the reality that Quest is growing their base business year-over-year, so the company does not have to rely on COVID-19 testing to grow in the long term. Moreover, the spread of variants has sustained the demand for COVID-19 molecular testing, and Quest’s positivity rate was about 25% in the first 2 weeks of July. Quest is still running roughly 8% of COVID-19 molecular testing in the United States, which is up from around 4% in March. So, the COVID-19 revenues are not busted. What’s My Point? Quest’s base business is growing while the company is increasing their share of COVID-19 molecular testing. Essentially, Quest has the ability to grow regardless of COVID-19 testing, but they can also take advantage of being a leader in COVID-19 testing at a time when demand is still significant. I believe investors should consider focusing on the company’s “meat and potatoes” base business growth trends and see the COVID-19 revenue as “gravy” at this point. Potential Growth Opportunities Quest has several opportunities to unlock growth in the near term and in the coming years. Looking at Quest’s base business, the company mentioned that they are “in late-stage discussions with several hospital health systems on the purchase of their laboratory outreach business.” In addition, Quest has seen growth in health plan access as they renew contracts with price increases. Moreover, Quest is seeing growth in direct-to-consumer testing including testosterone, comprehensive metabolic panels, and Lyme disease tests. Into the bargain, Quest has launched a molecular test for monkeypox that can “differentiate monkeypox from other orthopoxviruses.” Quest believes that will be able to perform approximately 30K tests a week and can increase capacity if needed. Monkeypox might not reach the same level of threat as COVID, however, the world is still going to need tests to help diagnose patients and manage the public health response. Looking ahead, Quest is looking to debut their improved QuestDirect digital platform, which they believe will help them “acquire, convert and retain more customers.” QuestDirect Steps (Quest Diagnostics) As a result, Quest updated their full-year 2022 base business revenues to be between $8.35B and $8.45B. On the COVID front, it looks as if the need for COVID-19 testing will most likely become a mainstay for managing the infection and for public health monitoring. Luckily, Quest’s COVID-19 strategy and execution have made them a leader in testing. What is more, the company has increased the number of their testing access points via retail relationships including CVS (CVS), Walmart (WMT), and Rite Aid (RAD) with plans to increase the number of access points. It is important to note, that the public health emergency has been extended into October, which will help maintain their reimbursement for testing. Considering these points above, one must concede that there is still a substantial opportunity in COVID-19 testing, and Quest is positioned to maximize it. As a result, Quest raised their COVID-19 revenue guidance for 2022 to be $1.15B to $1.30B. Overall, Quest believes their full-year 2022 revenues will come in between $9.5B and $9.75B. Looking ahead, the Street expects Quest to report year-over-year decreases in revenue for 2022 and 2023 as COVID-19 revenues shrink. DGX Annual Revenue Estimates (Seeking Alpha) However, Street analysts expect the company to report single-digit growth for 2024, 2025, and will cross $10B in revenue in 2026. So, it appears that the Street is expecting Quest to ultimately return to reporting growth as the company continues to grow their base business and capitalize on their COVID-19 testing leadership. Picking a Valuation Finding a reasonable valuation for an industry-leading healthcare company can be complicated, especially when there is a dividend involved. Luckily, I use a variety of valuation models in order to smooth out the results and come up with a solitary value.

Sep 09

Quest Diagnostics: Valuation Looks Good As Covid Testing Demand Tapers

Summary The Health Care sector sports relative strength during the latest market drop. Quest Diagnostics should see profits fall somewhat as Covid wanes, but there are other upside risks in this low P/E stock. The technical picture shows the stock hovering at critical support ahead of the company's speaking engagement next week at a Morgan Stanley conference. The Health Care sector continues to reassert itself as a source of stability in a topsy turvy market. The Health Care Select Sector SPDR ETF (XLV) has outperformed the S&P 500 Trust ETF (SPY) by about four percentage points since the top in stocks nearly a month ago. Health Care features a few diverse areas from defensive pharmaceuticals to somewhat cyclical medical device suppliers to downright speculative niches like biotech. One name has underperformed off the June low in the S&P 500 and finds itself trading at an attractive valuation. But shares are stuck in a range. Let's get a pulse on if it's a buy now or not. Health Care Lost Relative Steam During July, But Alpha Has Ticked Up Lately According to Bank of America Global Research, Quest Diagnostics (DGX) is the largest provider of clinical diagnostic testing and related services in the U.S., delivered through a national network of full-service clinical laboratories and over 2,200 patient service centers. The stock is a 5.4% weight in the ETFMG Treatments, Testing, and Advancements ETF (GERM) and a 3% holding in the iShares U.S. Healthcare Providers ETF (IHF). The New Jersey-based $15 billion market cap Health Care Providers & Services industry company trades at just 10.8 times last year's GAAP earnings. It pays a dividend slightly above the yield of the S&P 500, according to The Wall Street Journal. Analysts at BofA see earnings declining this year and next, in the wake of the Covid-19 pandemic and the huge surge in testing as a result. There are upside possibilities, though, from higher lab consolidation due to Medicare reimbursement cuts, says BofA. Downside risks include inflation and weak test volume growth. Still, at under nine times this year's operating earnings, there's clearly a high degree of earnings weakness priced in. Moreover, dividends are forecast to be on the increase. Quest's EV/EBITDA multiple is within its historical range while free cash flow yield is strong, helping to increase the chance of future shareholder accretive activities. Quest: Earnings, Valuation, Dividend Forecasts BofA Global Research Quest's corporate event calendar has been busy. According to Wall Street Horizon's data, the company presented at two conferences this past week and is slated to speak at the Morgan Stanley 20th Annual Global Healthcare Conference that takes place Tuesday through Thursday next week. Jim Davis, CEO-elect, and Sam Samad, EVP and CFO are set to deliver remarks. Conferences are one of a number of events that can cause stock price volatility as industry and company-specific news sometimes break.

Shareholder Returns

DGXUS HealthcareUS Market

Return vs Industry: DGX underperformed the US Healthcare industry which returned 7.7% over the past year.

Return vs Market: DGX exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is DGX's price volatile compared to industry and market?
DGX volatility
DGX Average Weekly Movement3.0%
Healthcare Industry Average Movement7.9%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: DGX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DGX's weekly volatility (3%) has been stable over the past year.

About the Company

196744,500Steve Rusckowski

Quest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine testing, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It offers diagnostic information services primarily under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to patients, clinicians, hospitals, independent delivery networks, health plans, employers, direct contract entities, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile paramedics, nurses, and other health and wellness professionals.

Quest Diagnostics Fundamentals Summary

How do Quest Diagnostics's earnings and revenue compare to its market cap?
DGX fundamental statistics
Market CapUS$14.31b
Earnings (TTM)US$1.48b
Revenue (TTM)US$10.58b


P/E Ratio


P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DGX income statement (TTM)
Cost of RevenueUS$6.63b
Gross ProfitUS$3.96b
Other ExpensesUS$2.48b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 20, 2022

Earnings per share (EPS)12.68
Gross Margin37.37%
Net Profit Margin13.98%
Debt/Equity Ratio61.1%

How did DGX perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio

Does DGX pay a reliable dividends?

See DGX dividend history and benchmarks
When do you need to buy DGX by to receive an upcoming dividend?
Quest Diagnostics dividend dates
Ex Dividend DateOct 03 2022
Dividend Pay DateOct 19 2022
Days until Ex dividend0 days
Days until Dividend pay date16 days

Does DGX pay a reliable dividends?

See DGX dividend history and benchmarks
We’ve recently updated our valuation analysis.


Is DGX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score


Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DGX?

Other financial metrics that can be useful for relative valuation.

DGX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA7.1x
PEG Ratio4.8x

Price to Earnings Ratio vs Peers

How does DGX's PE Ratio compare to its peers?

DGX PE Ratio vs Peers
The above table shows the PE ratio for DGX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average44x
LH Laboratory Corporation of America Holdings
DVA DaVita
OPCH Option Care Health
DGX Quest Diagnostics

Price-To-Earnings vs Peers: DGX is good value based on its Price-To-Earnings Ratio (9.7x) compared to the peer average (44x).

Price to Earnings Ratio vs Industry

How does DGX's PE Ratio compare vs other companies in the US Healthcare Industry?

Price-To-Earnings vs Industry: DGX is good value based on its Price-To-Earnings Ratio (9.7x) compared to the US Healthcare industry average (19x)

Price to Earnings Ratio vs Fair Ratio

What is DGX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DGX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.7x
Fair PE Ratio23.8x

Price-To-Earnings vs Fair Ratio: DGX is good value based on its Price-To-Earnings Ratio (9.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.8x).

Share Price vs Fair Value

What is the Fair Price of DGX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DGX ($122.69) is trading below our estimate of fair value ($325.91)

Significantly Below Fair Value: DGX is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Quest Diagnostics forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score


Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DGX's forecast earnings growth (2% per year) is above the savings rate (1.9%).

Earnings vs Market: DGX's earnings (2% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: DGX's earnings are forecast to grow, but not significantly.

Revenue vs Market: DGX's revenue is expected to decline over the next 3 years (-0.07% per year).

High Growth Revenue: DGX's revenue is forecast to decline over the next 3 years (-0.07% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DGX's Return on Equity is forecast to be low in 3 years time (13.9%).

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Past Performance

How has Quest Diagnostics performed over the past 5 years?

Past Performance Score


Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: DGX has high quality earnings.

Growing Profit Margin: DGX's current net profit margins (14%) are lower than last year (20.2%).

Past Earnings Growth Analysis

Earnings Trend: DGX's earnings have grown significantly by 25.3% per year over the past 5 years.

Accelerating Growth: DGX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DGX had negative earnings growth (-33.9%) over the past year, making it difficult to compare to the Healthcare industry average (1.9%).

Return on Equity

High ROE: DGX's Return on Equity (23.9%) is considered high.

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Financial Health

How is Quest Diagnostics's financial position?

Financial Health Score


Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: DGX's short term assets ($2.4B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: DGX's short term assets ($2.4B) do not cover its long term liabilities ($5.2B).

Debt to Equity History and Analysis

Debt Level: DGX's net debt to equity ratio (49%) is considered high.

Reducing Debt: DGX's debt to equity ratio has reduced from 78.9% to 61.1% over the past 5 years.

Debt Coverage: DGX's debt is well covered by operating cash flow (48.3%).

Interest Coverage: DGX's interest payments on its debt are well covered by EBIT (14.5x coverage).

Balance Sheet

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What is Quest Diagnostics's current dividend yield, its reliability and sustainability?

Dividend Score


Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


Current Dividend Yield

Dividend Yield vs Market

Quest Diagnostics Dividend Yield vs Market
How does Quest Diagnostics dividend yield compare to the market?
SegmentDividend Yield
Company (Quest Diagnostics)2.2%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Healthcare)1.4%
Analyst forecast in 3 Years (Quest Diagnostics)2.2%

Notable Dividend: DGX's dividend (2.15%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: DGX's dividend (2.15%) is low compared to the top 25% of dividend payers in the US market (4.73%).

Stability and Growth of Payments

Stable Dividend: DGX's dividends per share have been stable in the past 10 years.

Growing Dividend: DGX's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.7%), DGX's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19.8%), DGX's dividend payments are well covered by cash flows.

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How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Steve Rusckowski (65 yo)





Mr. Stephen H. Rusckowski, also known as Steve, has been the Chief Executive Officer, President and Director of Quest Diagnostics Incorporated since May 1, 2012 and has been its Chairman since January 1, 2...

CEO Compensation Analysis

Steve Rusckowski's Compensation vs Quest Diagnostics Earnings
How has Steve Rusckowski's remuneration changed compared to Quest Diagnostics's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a


Mar 31 2022n/an/a


Dec 31 2021US$15mUS$1m


Sep 30 2021n/an/a


Jun 30 2021n/an/a


Mar 31 2021n/an/a


Dec 31 2020US$14mUS$1m


Sep 30 2020n/an/a


Jun 30 2020n/an/a


Mar 31 2020n/an/a


Dec 31 2019US$10mUS$1m


Sep 30 2019n/an/a


Jun 30 2019n/an/a


Mar 31 2019n/an/a


Dec 31 2018US$10mUS$1m


Sep 30 2018n/an/a


Jun 30 2018n/an/a


Mar 31 2018n/an/a


Dec 31 2017US$10mUS$1m


Sep 30 2017n/an/a


Jun 30 2017n/an/a


Mar 31 2017n/an/a


Dec 31 2016US$10mUS$1m


Sep 30 2016n/an/a


Jun 30 2016n/an/a


Mar 31 2016n/an/a


Dec 31 2015US$10mUS$1m


Compensation vs Market: Steve's total compensation ($USD14.56M) is about average for companies of similar size in the US market ($USD13.04M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: DGX's management team is seasoned and experienced (5.7 years average tenure).

Board Members

Experienced Board: DGX's board of directors are considered experienced (8.8 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

NYSE:DGX Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
28 Feb 22SellUS$85,930Michael PrevoznikIndividual661US$130.00

Ownership Breakdown

What is the ownership structure of DGX?
Owner TypeNumber of SharesOwnership Percentage
State or Government73,2020.06%
Individual Insiders817,5980.7%
General Public8,698,6787.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 57.25% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
The Vanguard Group, Inc.
BlackRock, Inc.
State Street Global Advisors, Inc.
Victory Capital Management Inc.
American Century Investment Management Inc
Geode Capital Management, LLC
Dimensional Fund Advisors LP
Davis Selected Advisers LP
Grantham Mayo Van Otterloo & Co. LLC
Northern Trust Global Investments
Managed Account Advisors LLC
UBS Asset Management
LSV Asset Management
Merrill Lynch & Co. Inc., Banking Investments
Legal & General Investment Management Limited
Pictet Asset Management Limited
BNY Mellon Asset Management
Norges Bank Investment Management
Morgan Stanley, Investment Banking and Brokerage Investments
Amundi Asset Management
T. Rowe Price Group, Inc.
Renaissance Technologies LLC
Invesco Capital Management LLC
Columbia Management Investment Advisers, LLC
Nordea Investment Management AB

Company Information

Quest Diagnostics Incorporated's employee growth, exchange listings and data sources

Key Information

  • Name: Quest Diagnostics Incorporated
  • Ticker: DGX
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Health Care Services
  • Sector: Healthcare
  • Implied Market Cap: US$14.306b
  • Shares outstanding: 116.61m
  • Website:

Number of Employees


  • Quest Diagnostics Incorporated
  • 500 Plaza Drive
  • Secaucus
  • New Jersey
  • 7094
  • United States


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DGXNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1996
QDIXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1996
QDIDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1996
0KSXLSE (London Stock Exchange)YesCommon StockGBUSDDec 1996
DGX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1996
Q1UE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COM SHS USD0.01BRBRLJan 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/02 00:00
End of Day Share Price2022/09/30 00:00
Annual Earnings2021/12/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.