Quest Diagnostics IncorporatedNYSE: DGX

Quest Diagnostics (DGX) has received a Zacks Rank #2 (Buy) upgrade, indicating increased confidence in the company's potential earnings. This could lead to a rise in the stock price soon.

DGX shows strong performance in its core business. The growing use of the Advanced Diagnostics service is also a good sign.

SECAUCUS, N.J., Nov. 12, 2024 /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), a top company in diagnostic information services, has announced that its Board of Directors has approved a quarterly cash dividend of $0.75 per share. This dividend will be paid on January 29, 2025, to shareholders who own Quest Diagnostics common stock as of January 14, 2025.

Investors who focus on Medical - Outpatient and Home Healthcare stocks probably know about Quest Diagnostics (DGX) and The Pennant Group, Inc. (PNTG). However, which of these companies is the better choice for those seeking undervalued stocks?

Quest Diagnostics (DGX) has reached its highest point in the last year, but can investors expect further growth? We will examine the company's fundamentals for insights.

Quest Diagnostics is seeing more lab tests, especially in genetic testing, due to an older population, and it provides a 2.0% dividend yield. The company's strategy for mergers and acquisitions, like buying LifeLabs, is designed to grow its presence and diversify its services, even though it may temporarily lower earnings per share. While there are risks from reimbursement cuts and labor market issues, Quest Diagnostics anticipates long-term growth from both its own efforts and acquisitions.

Quest Diagnostics announced impressive earnings for the third quarter, showing an 8.5% increase in revenue and a 3.6% rise in diluted earnings per share, surpassing analysts' predictions. The company has also updated its revenue forecast for 2024, anticipating strong growth from recent and future acquisitions, with expectations of double-digit revenue growth in the fourth quarter. Although there are concerns about economic challenges and inflation, I remain optimistic about DGX, changing my Buy Threshold to $150 and my Sell Target to $227.

Quest Diagnostics Incorporated (NYSE:DGX) will hold its Q3 2024 Earnings Conference Call on October 22, 2023, at 8:30 AM ET. The call will feature company leaders, including President and CEO Jim Davis, along with several financial analysts from various firms. This call is being recorded at the company's request.

Quest Diagnostics' results for the third quarter of 2024 show strong growth in their DIS business and positive impacts from recent acquisitions.