$155.29
arrow_drop_up0.33%Is DGX a Buy or Sell based on AI Analysis?
Fundamental Analysis
Quest Diagnostics Inc, a healthcare company, has a strong financial position with a market capitalization of $13.87 billion and an enterprise value of $18.61 billion. The company's revenue stands at $9.25 billion, with a net income of $850 million, indicating a healthy profit margin of 9.23%. Additionally, Quest Diagnostics boasts a return on equity of 14.62%, demonstrating efficient utilization of shareholder funds. Furthermore, the company has a low debt-to-equity ratio of 0.86, indicating a conservative approach to leverage. Lastly, Quest Diagnostics has a dividend yield of 2.41% and a payout ratio of 32.61%, suggesting a sustainable dividend policy that rewards shareholders while allowing for future growth and investment. Moreover, Quest Diagnostics Inc has shown resilience and growth potential, with a five-year price change percent of 46.19%. The company's strong financial metrics are further supported by a price-to-earnings ratio of 16.73, indicating the stock is reasonably priced relative to its earnings. Additionally, Quest Diagnostics has a beta of 0.91, implying lower volatility compared to the overall market. The company's strong free cash flow margin of 9.34% and free cash flow of $864 million highlight its ability to generate cash and reinvest in the business for future growth. Overall, Quest Diagnostics' fundamental analysis reveals a financially stable company with strong profitability, efficient use of capital, growth potential, and a sustainable dividend policy, making it an attractive investment option in the healthcare sector.
Positive Development
Quest Diagnostics has been selected as one of FORTUNE's World's Most Admired Companies in 2024, indicating strong brand recognition and reputation. The company has announced a new pact to advance food access and healthy eating habits for underserved communities, demonstrating its commitment to social responsibility and community engagement. The company has been recognized for its efforts in advancing early cancer detection through its partnership with Freenome, which has raised $254 million in new funding.
Negative Development
Quest Diagnostics faces intense competition from other commercial laboratories and hospitals, which could negatively impact its market share and profitability. The company has reported a decrease in testing sales, which could be a cause for concern for investors. The company has reported a higher debt-to-equity ratio, indicating a higher level of debt financing, which could lead to potential financial instability.
Technical Analysis
Based on the technical analysis of Quest Diagnostics Inc, the stock currently has a neutral rating with a technical rating of "NEUTRAL." The company's stock price has shown a slight decrease of 1.39% over the past seven days, but there has been a positive price change of 1.2% over the last month. The stock has a beta of 0.91, indicating that it is less volatile than the overall market. Additionally, the stock has a 52-week price change percent of -10.69%, with a high of $148.62 and a low of $119.59. The technical indicators for the stock show a mix of buy and hold signals, with four technical buy indicators including CCI, ATR, WILLR, and STOCHRSI, and four hold indicators such as RSI, MACD, ADX, and ROC. Furthermore, Quest Diagnostics Inc has a market value score of 36 and a market quality score of 47. The company operates in the healthcare sector and has a sector score of 59, with a sector growth score of 49 and a sector dividends score of 79. The stock's technical analysis also reveals that it has a cumulative multiple of 4, has paid dividends, and has had two stock splits with the last split occurring on June 21, 2005, at a ratio of 2:1. The company has shown a strong performance in terms of its financial metrics, with a return on equity of 14.62% and a free cash flow margin of 9.34%. Overall, the technical analysis suggests that Quest Diagnostics Inc is a stable investment option with potential for growth in the healthcare sector.
Conclusion and recommendation
Based on the data provided, it is evident that Quest Diagnostics Inc (DGX) is a sound investment opportunity in the healthcare sector. The company has a strong market score of 55, indicating a stable position in the market. With a dividend yield of 2.41% and a solid financial performance, including a revenue of $9.25B and a net income of $850M, Quest Diagnostics has demonstrated consistency and reliability. Furthermore, the company's strong return on equity of 14.62% and a low debt-to-equity ratio of 0.86 suggest a healthy financial position that is favorable for investors. In conclusion, Quest Diagnostics Inc presents a compelling investment opportunity in the healthcare sector. With a solid financial performance, stable market position, and attractive dividend yield, the company is well-positioned for long-term growth and profitability. Investors looking for a reliable and stable investment in the healthcare industry may consider adding Quest Diagnostics to their portfolio. It is recommended to conduct further research and analysis before making any investment decisions to ensure alignment with individual investment goals and risk tolerance.