Quest Diagnostics (DGX): Evaluating Valuation Ahead of Third-Quarter Results and Recent Analyst Upgrades

Quest Diagnostics (DGX) is drawing attention as it prepares to release its third-quarter results. Investors are watching closely, given the company’s reliable history of beating earnings estimates and sustained optimism among analysts.

See our latest analysis for Quest Diagnostics.

Quest Diagnostics’ share price has steadily climbed to $184.07, notching up an impressive 21.9% year-to-date price return and a robust 25.9% total shareholder return over the past year. This upward momentum has been driven by a streak of earnings surprises and optimism around its upcoming quarterly results. Industry competition remains a talking point.

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With the stock trading near its recent highs and analysts boosting their earnings forecasts, the key question is whether Quest Diagnostics remains undervalued or if the market has already priced in the company’s growth prospects and future performance.

Most Popular Narrative: 2.2% Undervalued

Quest Diagnostics’ most followed narrative sees the stock trading just below its estimated fair value, with last close at $184.07 compared to a calculated fair value of $188.19. This close valuation highlights the latest shifts in growth drivers, sparking new debates among industry watchers.

The rising importance of health data analytics and Quest's role as a "lab engine" for consumer wellness brands positions the company to benefit from new revenue streams and further monetization opportunities as healthcare becomes more data-driven, supporting long-term earnings power.

Read the complete narrative.

Want to uncover the financial assumptions that position Quest Diagnostics as undervalued? The narrative builds around a new era of recurring revenue, unexpected margin gains, and an increased focus on long-term earnings power. Find out which forecasts shape this calculation; click through to learn what the experts are projecting.

Result: Fair Value of $188.19 (UNDERVALUED)

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

However, ongoing policy changes and healthcare reimbursement risks could limit Quest’s revenue growth. This could potentially shift the narrative in the months ahead.

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

Build Your Own Quest Diagnostics Narrative

If you see things differently or want to dig into the numbers on your own, it's fast and easy to 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 4 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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