Quest Diagnostics Inc. (DGX) Stock

Quest Diagnostics Inc. trades at a P/E ratio of 22.48, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 18.28 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.58 indicates reasonable value when growth is considered.

With a beta of 0.49, Quest Diagnostics Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 2.87 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Quest Diagnostics Inc. achieves a profit margin of 8.83%, meaning it retains $8.83 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 13.90% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 14.00% and ROA at 6.13%, the company achieves moderate returns on invested capital.

Quest Diagnostics Inc.'s revenue grew by 12.10% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 12.80% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SERVICES-MEDICAL LABORATORIES industry averages for proper context.

Quest Diagnostics Inc. offers a dividend yield of 1.80%, paying $3.05 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 7/7/2025.

The dividend sustainability can be assessed through the payout ratio - Quest Diagnostics Inc. pays $3.05 per share in dividends against earnings of $7.91 per share, resulting in a payout ratio of 38.56%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 7/21/2025.

Quest Diagnostics Inc. has a market capitalization of $19.85B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 111.64M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SERVICES-MEDICAL LABORATORIES industry, it competes with other firms in this sector.

Quest Diagnostics Inc.'s book value per share is $61.87, while the current stock price is $170.15, resulting in a price-to-book (P/B) ratio of 2.75. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

19 analysts cover DGX with 47% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $183.92 implies 8.1% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 8 Buy, 10 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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