Quest Diagnostics Incorporated (DGX)

Over the past six months, Quest Diagnostics' stock has seen an increase. Leerink Partners upgraded their outlook for Quest Diagnostics from Market Perform to Outperform on January 6, 2025. Citigroup downgraded their outlook for Quest Diagnostics from Buy to Neutral on March 4, 2025. Redburn Atlantic initiated coverage of Quest Diagnostics with a Buy recommendation on April 2, 2025. Quest Diagnostics reported strong Q3 earnings on October 24, 2024, with an 8.5% revenue increase and a 3.6% rise in diluted EPS, surpassing Street expectations. The company also raised its 2024 revenue guidance. However, Hurricane Milton was expected to negatively impact Q4 revenues and EPS.

The clinical testing industry, in which Quest Diagnostics operates, is subject to seasonal fluctuations, influenced by changes in the U.S. economy and regulatory environment.

Quest Diagnostics, Inc. is a leading American clinical laboratory and a Fortune 500 company, operating primarily in the healthcare sector. The company is a prominent independent provider of diagnostic testing, information, and services, playing a crucial role across the U.S. healthcare ecosystem. Quest Diagnostics offers a comprehensive range of routine and esoteric lab tests, including advanced genomic and precision medicine tests. Their services encompass medical testing, molecular diagnostics, and clinical chemistry. Key diagnostic testing services provided include those for cancer, cardiovascular disease, infectious disease, neurological disorders, and employment and court-ordered drug testing. The company also provides risk assessment services for the life insurance industry and healthcare information technology solutions for healthcare organizations and clinicians. Quest Diagnostics operates under its primary brand, Quest Diagnostics, as well as AmeriPath, Dermpath Diagnostics, ExamOne, and Quanum.

Quest Diagnostics has a significant geographic footprint, with headquarters in the United States and operations in India, Ireland, and Mexico. The company's products and services are utilized by customers across six continents. In the United States, Quest Diagnostics offers broad access to clinical testing services through a national network of laboratories in most major metropolitan areas and approximately 2,000 patient locations. They also maintain collaborative agreements with various hospitals and clinics globally. Specifically, in Mexico, Quest Diagnostics operates two central labs and approximately 35 patient locations. Their Nichols Institute Worldwide provides specialized testing to hospitals and laboratories in over 50 countries. Recent strategic acquisitions in 2024 aimed to broaden the company's geographic presence in the United States and also supported expansion in Canada.

Quest Diagnostics has received positive recognition for its brand reputation, being named one of FORTUNE's "World's Most Admired Companies" for the tenth consecutive year. The company scored highly in people management, use of corporate assets, and social responsibility. Ongoing legal matters related to inaccuracies in cervical smear tests in Ireland from 2018 have affected Quest Diagnostics' reputation.

Quest Diagnostics, Inc. has a widely held ownership structure, with shares distributed among numerous institutional and retail investors. Institutional investors hold a significant portion of the company's stock. Major institutional owners of Quest Diagnostics include Vanguard Group Inc., BlackRock, Inc., Price T Rowe Associates Inc /md/, State Street Corp, and Jpmorgan Chase & Co. Insiders own approximately 0.44% of the company's stock.