Does Quest’s New Pharmacogenomic Test Shift the Bull Case for Quest Diagnostics (DGX)?

• On September 4, 2025, Quest Diagnostics announced the launch of an advanced pharmacogenomic laboratory test service, designed to help healthcare providers tailor drug therapies based on patients’ individual genetic profiles, with applications across multiple medical specialties.
• This new offering integrates real-time clinical decision support and broad genetic insights, potentially strengthening Quest's capabilities in precision medicine and expanding its reach in genetics-driven healthcare management.
• We'll examine how the introduction of this comprehensive pharmacogenomic test may influence Quest Diagnostics' investment narrative and future growth opportunities.

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Quest Diagnostics Investment Narrative Recap

To invest in Quest Diagnostics, you have to believe in the expanding importance of precision medicine and advanced lab diagnostics for long-term resilience and growth. The recent launch of its advanced pharmacogenomic laboratory test positions the company closer to that vision, but does not appear to materially change the immediate concern for investors: ongoing risks around government reimbursement rates and policy changes, which remain the most significant short-term catalyst and risk, respectively.

Among recent company presentations, Quest’s participation at the Baird Global Healthcare Conference on September 10 is especially relevant, highlighting management’s focus on innovation, healthcare trends, and partnerships, factors likely interlinked with the potential adoption and commercial trajectory of new tests like the pharmacogenomic offering.

But despite promising scientific advances, investors should be aware of how looming reimbursement cuts under PAMA could still…

Read the full narrative on Quest Diagnostics (it's free!)

Quest Diagnostics' outlook forecasts $11.9 billion in revenue and $1.3 billion in earnings by 2028. This is based on 4.1% annual revenue growth and a $355 million increase in earnings from the current $945 million level.

Uncover how Quest Diagnostics' forecasts yield a $188.19 fair value, a 3% upside to its current price.

Exploring Other Perspectives

The Simply Wall St Community share three distinct fair value estimates for Quest Diagnostics ranging from US$157.30 to US$307.93 per share. While optimism surrounds expansion into advanced testing, the risk of pressured payer reimbursement remains a key theme for your consideration.

Explore 3 other fair value estimates on Quest Diagnostics - why the stock might be worth as much as 68% more than the current price!

Build Your Own Quest Diagnostics Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Quest Diagnostics research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Quest Diagnostics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Quest Diagnostics' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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