Fact based stock research
Quest Diagnostics (NYSE:DGX)

US74834L1008

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Quest Diagnostics stock research in summary

questdiagnostics.com

ANALYSIS: With an Obermatt Combined Rank of 66 (better than 66% compared with investment alternatives), Quest Diagnostics (Health Care Services, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Quest Diagnostics are a good value (attractively priced) with a consolidated Value Rank of 63 (better than 63% of alternatives), show above-average growth (Growth Rank of 55), and are safely financed (Safety Rank of 52), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 66, is a buy recommendation based on Quest Diagnostics's financial characteristics. As the company Quest Diagnostics's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 63), above-average growth (Obermatt Growth Rank of 55), and indicate that the company is safely financed (Obermatt Safety Rank of 52), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Quest Diagnostics. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	63
Growth Rank	55
Safety Rank	52
Combined Rank	66

Country	USA
Industry	Health Care Services
Index	Dividends USA, Diversity USA, D.J. US Health Care, S&P 500
Size class	X-Large

This stock has achievements: Top 10 Stock.

19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

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Why popular stocks have low ratings

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Quest Diagnostics

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	85	83	76	63
GROWTH
GROWTH	61	37	7	55
SAFETY
SAFETY	56	58	54	52
SENTIMENT
SENTIMENT	n/a	89	37	^new
360° VIEW
360° VIEW	n/a	93	30	^new

Most recent update of the stock research: 19-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Quest Diagnostics is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	85	83	76	63
GROWTH
GROWTH	61	37	7	55
SAFETY
SAFETY	56	58	54	52
COMBINED
COMBINED	87	78	35	66

Last update of combined financial performance: 19-Dec-2024. Stock analysis on combined financial performance: The higher the rank of Quest Diagnostics the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 63 (better than 63% compared with alternatives), Quest Diagnostics shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Quest Diagnostics. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 93% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 24 which means that the stock price compared with what market professionals expect for future profits is higher than 76% of comparable companies, indicating a low value concerning Quest Diagnostics's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 49 which means that the stock price compared with what market professionals expect for future profit levels is higher than 51% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 38 is also low. Compared with invested capital, the stock price is higher than for 62% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 63, is a buy recommendation based on Quest Diagnostics's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Quest Diagnostics? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Quest Diagnostics only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	68	34	20	24
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	100	54	61	49
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	47	71	50	38
DIVIDEND YIELD
DIVIDEND YIELD	66	92	94	93
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	85	83	76	63

Last update of Value Rank: 19-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Quest Diagnostics; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), Quest Diagnostics shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Quest Diagnostics. Sales Growth has a rank of 65 which means that currently, professionals expect the company to grow more than 65% of its competitors. Capital Growth is also above 30% of competitors with a rank of 65, and Stock Returns with the rank of 57 is also an outperformance. Only Profit Growth is low with a rank of 30 which means that currently, professionals expect the company to grow its profits less than 70% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Quest Diagnostics is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	63	5	12	65
PROFIT GROWTH
PROFIT GROWTH	38	66	27	30
CAPITAL GROWTH
CAPITAL GROWTH	n/a	33	28	65
STOCK RETURNS
STOCK RETURNS	53	71	23	57
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	61	37	7	55

Last update of Growth Rank: 19-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Quest Diagnostics.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 52 (better than 52% compared with alternatives), the company Quest Diagnostics has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Quest Diagnostics is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Quest Diagnostics. Liquidity is at 69, meaning the company generates more profit to service its debt than 69% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 34, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 66% of its competitors. Leverage is also high at a rank of 40, which means that the company has an above-average debt-to-equity ratio. It has more debt than 60% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 52 (better than 52% compared with alternatives), Quest Diagnostics has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	49	52	46	40
REFINANCING
REFINANCING	67	37	27	34
LIQUIDITY
LIQUIDITY	69	71	71	69
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	56	58	54	52

Last update of Safety Rank: 19-Dec-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Quest Diagnostics and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	40	28	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	55	25	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	95	55	^new
MARKET PULSE
MARKET PULSE	n/a	78	71	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	89	37	^new

Last update of Sentiment Rank: 19-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Quest Diagnostics.
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