Stock of the Day - July 31, 2020

Quest Diagnostics (DGX)

$238.92

+$5.49 (+2.4%)

Market Cap: $25.76B

About Quest Diagnostics

Quest Diagnostics Incorporated provides diagnostic testing and services in the United States and internationally. 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 offers diagnostic information services primarily 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, 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. The company also provides risk assessment services for the life insurance industry; and healthcare organizations and clinicians information technology solutions. Quest Diagnostics Incorporated was founded in 1967 and is headquartered in Secaucus, New Jersey.

Today's Trend

Quest Diagnostics Incorporated (NYSE: DGX) is under pressure primarily because investors are focused on potential Medicare reimbursement reductions, though valuation support, testing growth and a favorable analyst target provide counterweights.

Quest’s diagnostic-testing growth, customer wins, advanced diagnostics and artificial-intelligence initiatives support a constructive long-term outlook. One analyst remains bullish despite Medicare-related risks. Quest Diagnostics: Testing Growth Keeps Me Bullish Despite Medicare Headwinds
Truist Financial assigned Quest Diagnostics a $260 price target, implying analysts see additional upside from current levels. Quest Diagnostics Given New $260 Price Target at Truist Financial
Zacks highlighted DGX as a potential long-term value stock, which may attract investors seeking defensive healthcare exposure at a reasonable valuation. Why Quest Diagnostics Is a Top Value Stock for the Long-Term
A Quest study finding substantial co-exposure to multiple tick-borne diseases highlights broader testing needs and could support demand for specialized diagnostics. Quest Diagnostics Study Finds High Tick-Borne Disease Co-Exposure
Quest will report third-quarter 2026 results before the market opens on October 22. The announcement itself does not change fundamentals but sets the next major catalyst for earnings, guidance and reimbursement commentary. Quest Diagnostics to Release Third Quarter Financial Results
Recent comparisons characterize DGX as having outperformed the Nasdaq over the past year, while a GeneDx comparison offers context on competitive positioning rather than a new company-specific catalyst. Is Quest Diagnostics Stock Outperforming the Nasdaq?
The key bearish catalyst is concern that the government believes Medicare has overpaid Quest and may reduce reimbursement rates next year. Investors fear the cuts could pressure revenue, margins and earnings, prompting the sharp decline in the stock. Why Quest Diagnostics Holdings Stock Dropped Today

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