NYSEHealth CareMedical - Diagnostics & ResearchSnapshot 2026-08-31
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Create your account →Intact: The reason to own it still holds.
Quest Diagnostics keeps growing revenue about 7% a year. Profit per share is rising toward $9.68 in 2026. Free cash flow is strong at $1.75 billion. The company buys back stock and gains new test approvals to boost growth.
Revenue and EPS recently fell sharply in late 2025. Management has struggled to improve growth and earnings. Rising competition or regulatory issues could hurt results.
The price is about 4% above our fair value near $202 but 10% below the Street median near $225. Analysts expect a large revenue decline of about -60%, which we view as unjustified given recent growth and guidance.
Breaks if: no buyback authorization or buybacks halted
Breaks if: EPS falls below $9.0 in FY26
Breaks if: free cash flow falls below $1.5 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
DGX represents a durable compounder with a focus on revenue and earnings growth. The current thesis is intact, supported by strong recent financial performance and management's consistent execution on priorities.
The market appears to have a neutral valuation for DGX, with expectations that are not overly aggressive compared to peers. There is an expectations gap of 0.58, indicating that the market may not fully reflect the company's potential growth.
Fundamentals are likely to continue showing robust growth, as management has consistently raised revenue and earnings guidance. However, there is a moderate risk due to recent trends in earnings surprises, which have been trending down.
The long-term thesis hinges on maintaining revenue and EPS growth, as well as external factors like the performance of sector bellwethers and overall economic conditions. A reversal in guidance or a weakening jobs report could negatively impact sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. Additionally, the company raised its revenue and EPS growth forecasts, reinforcing confidence in its performance.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: revenue falls below $11.0 billion in FY26
Overall, DGX's strong management and financial performance position it well for the future, but it must navigate potential risks carefully. Not investment advice.
