DGX Stock Analysis
NYQ · Healthcare · Diagnostics & Research
$234.42
-1.86 (-0.79%)
DGX Interactive Price Chart & Trading Signals
DGX Stock Snapshot — Valuation, Risk & Technical Signals
DGX Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$25.87B
P/E Ratio
24.89
Forward P/E
19.44
PEG Ratio
1.54
P/B Ratio
3.43
EPS
$9.41
Dividend Yield
1.46%
52W Range
$171.18 – $248.84
Beta
0.55
Volume
0.0M
ROE
14.6%
Profit Margin
9.2%
Revenue Growth
10.2%
Gross Margin
33.2%
EV/EBITDA
14.23
Analyst Target
$247.73
The trailing price-to-earnings ratio stands at 24.9x. Forward P/E of 19.4x implies earnings expansion expected. Price-to-book is 3.43x. EV/EBITDA sits at 14.23x. Market capitalization is $25.87B. Revenue is growing at 10.2% on a trailing basis. Earnings are expanding at 15.0%. Profit margins are 9.2%. Return on equity is 14.6%. Beta of 0.55 indicates defensive profile.
Analyst Consensus
Recommendation
Buy
Low Target
$204.00
Mean Target
$247.73
High Target
$265.00
Based on 15 analysts
About DGX
Quest Diagnostics Incorporated provides diagnostic testing and services in the United States. The company develops and delivers diagnostic information services, such as routine, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. It also provides services under the Quest Diagnostics brand, as well as under the AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum brands to physicians, hospitals, patients and consumers, health plans, government agencies, employers, retailers, pharmaceutical companies and insurers commercial clinical laboratories, and accountable care organizations through a network of laboratories, patient service centers, phlebotomists in physician offices, call centers and mobile phlebotomists, nurses, and other health and wellness professionals. In addition, the company offers risk assessment services for the life insurance industry; healthcare IT healthcare providers and payers; testing and medical director services at hospital laboratories; test offerings in cardiometabolic and endocrine; cancer; clinical drug monitoring and toxicology; infectious disease, including autoimmune; neurology diagnostics, including Alzheimer's disease; and women's health, such as prenatal genetic; workplace drug testing, testing urine, hair, and oral fluid specimens services; and employer population health services, including biometric screenings, flu shots, and related preventative services. Further, it provides population health solutions; extended care services; develops in vitro diagnostic tests; laboratory diagnostic information and digital health connectivity systems; underwriting support services, including data gathering, paramedical examinations, and clinical laboratory testing and analytics; and national specimen collection and health data solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.
DGX Deep Dive Analysis
Bottom Line
Verdict
OvervaluedBest for
General investorWatch out for
Premium valuationNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
Quest Diagnostics Incorporated (DGX) trades above our multi-model fair value estimate of $167.24 by approximately 28.7%. Trailing P/E: 24.9x. Profitability signals include profit margin of 9.2% and return on equity of 14.6%. Recent growth metrics show revenue growth of 10.2% and earnings growth of 15.0%. Risk profile: defensive beta of 0.55. Consensus: buy.
Valuation, Growth & Risk
Valuation
Overvalued
P/E 24.9x
Price is above what fundamentals suggest.
Growth
Expanding
Rev 10.2%
Revenue is outpacing the market.
Risk
Low
Beta 0.55
Movement is likely to track the broader market.
Valuation Snapshot
Quest Diagnostics Incorporated (DGX) trades above our multi-model fair value estimate of $167.24 by approximately 28.7%. The trailing price-to-earnings ratio stands at 24.9x. Forward P/E of 19.4x suggests earnings compression ahead. Price-to-sales is 2.2x. Price-to-book is 3.4x. EV/EBITDA sits at 14.2x. Market capitalization is $25.87B.
Why it matters: Paying a premium works only if the company keeps growing faster than expected.
Growth & Profitability
Revenue is growing at 10.2% on a trailing basis. Earnings are expanding at 15.0%. Profit margins are 9.2%. Return on equity is 14.6%. Return on assets is 6.4%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 0.55 indicates defensive profile. Net debt position is $5.78B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $247.73 implies 5.7% upside. Target range spans $204.00 to $265.00. 15 analysts cover the stock. Consensus recommendation: buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Investor Fit
Free cash flow yield of 5.3% is attractive for cash-flow-focused investors.
Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
DGX Overvalued
Quest Diagnostics Incorporated (DGX) trades above our multi-model fair value estimate of $167.24 by approximately 28.7%.
Frequently Asked Questions
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.