Quest Diagnostics (DGX): Evaluating Valuation After Recent Share Price Gains

Quest Diagnostics (DGX) has experienced some movement in its stock price recently, gaining 4% over the past week after a slight dip last month. Investors are watching its performance closely as market sentiment shifts.

See our latest analysis for Quest Diagnostics.

After shaking off a dip last month, Quest Diagnostics has regained positive momentum, with its share price up nearly 24% year-to-date and a solid 18.7% total shareholder return over the past year. This steady climb suggests investor confidence is returning, possibly reflecting optimism about the company’s long-term outlook.

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But with the stock trading near its price target and growth numbers in hand, the question remains: Is Quest Diagnostics still undervalued, or are investors already paying today for tomorrow’s anticipated success?

Most Popular Narrative: 5% Undervalued

Quest Diagnostics’ fair value, as estimated in the most widely followed narrative, stands at $197.25 per share compared to the last close of $186.95. The small gap highlights a view that the stock is trading below what analysts believe it should be worth, taking into account its current performance and future prospects.

Ongoing growth in advanced and preventive testing, including cardiometabolic, autoimmune, brain health, oncology, and women's/reproductive diagnostics, as well as robust demand from functional medicine and wellness-focused consumers, are driving higher test volumes and increasing test-per-requisition. This supports both revenue growth and margin expansion.

Read the complete narrative.

Curious about what the consensus is actually projecting? The current narrative accounts for bold expansion in new testing services and future profitability assumptions that might surprise you. Eager to unpack which trends drive the target valuation? Find out what else could be shaping Quest Diagnostics’ fair value.

Result: Fair Value of $197.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent pricing pressures or changes in government reimbursement could quickly tilt the balance and limit further upside for Quest’s share price.

Find out about the key risks to this Quest Diagnostics narrative.

Build Your Own Quest Diagnostics Narrative

If you’re keen to dig into the numbers and tell your own story, you can easily craft your own perspective in just a few minutes. Do it your way.

A great starting point for your Quest Diagnostics research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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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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