Quest Diagnostics has posted four consecutive quarterly earnings beats and its price action shows a golden-cross breakout above all major moving averages, but an extraordinarily elevated options put/call ratio of 12.41 signals unusual institutional hedging activity, the stock is within 0.6% of near-term resistance, and the business carries no identifiable competitive moat; the risk/reward is unfavorable for new money at current levels.
Thesis pillars
- No Moat At Resistance→Stable
- Consistent Earnings Outperformance↓Deteriorating
- Technical Breakout Momentum↑Improving
- +1 more pillar — see the Why tab for full reasoning
Quest Diagnostics Incorporated (DGX) Stock Analysis
Healthcare · Diagnostics & Research
Hold if already holding. Not a fresh buy at $235.02, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.9% away).
Quest Diagnostics provides diagnostic information services through laboratory testing across the United States, serving approximately one-third of the adult US population annually through physician, hospital, patient, and consumer channels. The company generated $11.0 billion in... Read more
Hold if already holding. Not a fresh buy at $235.02, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.9% away). Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.4/10, moderate confidence.
Passes 4/7 gates (clean insider activity, earnings proximity 37d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
About Quest Diagnostics Incorporated
About Quest Diagnostics Incorporated
Quest Diagnostics processed approximately 244 million test requisitions in 2025, generating $11.0 billion in net revenues from physician, hospital, patient, and consumer channels. The company's network spans roughly 2,400 patient service centers in the United States — often located inside retail stores — plus 18 aircraft supporting overnight specimen transport and connectivity with more than 1,000 electronic health record systems.
Revenue flows primarily through fee-for-service billing to Medicare, Medicaid, and commercial health plans — Quest estimates access to over 90% of insured US lives through health plan contracts. Reference testing performed for hospital labs generated approximately $1.2 billion in revenues in 2025, while the Collaborative Lab Solutions outsourcing program added roughly $800 million in revenues and management fees from hospitals that retain in-house lab infrastructure under third-party management. Advanced Diagnostics — spanning oncology, cardiometabolic and endocrine conditions, brain health, autoimmune disorders, and women's health — topped $1 billion in revenues on double-digit growth. The company competes against hospital-affiliated laboratories, physician-office laboratories, and newer entrants including point-of-care and direct-to-consumer testing platforms. Hospitals have been acquiring physician practices at an increasing rate, which may direct affiliated clinician testing toward hospital labs and could reduce Quest's outreach volumes over time.
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Medicare reimbursement risk is the most quantified pricing threat in the 10-K. PAMA-driven rate cuts imposed during 2018–2020 exceeded the program's own 10-year savings projections, per the filing. Congress has blocked further cuts through 2026 and introduced the Results Act in 2025 to reform the Clinical Laboratory Fee Schedule's rate-setting methodology. If reform stalls or a further round of cuts resumes, per-test Medicare rates could fall materially, compressing margins given that government payers represent a large share of test volume. The company's billing operations are performed by a third party under Quest's oversight, adding operational dependency to a revenue-sensitive function.
See also: Healthcare · Diagnostics & Research
From Quest Diagnostics Incorporated's most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-09-14Recent Developments — Quest Diagnostics Incorporated
Latest news
- NEWS Quest Diagnostics Rallies Ahead of Earnings as Investors Weigh Growth Initiatives - Quiver Quantitative — Quiver Quantitative positive
- NEWS Quest Diagnostics Gains Steam With Partnerships, Lifts Outlook - Sahm — Sahm positive
- NEWS Quest Diagnostics Stock Gains 5% After Q1 Earnings Exceed Analyst Expectations - TIKR.com — TIKR.com positive
- NEWS Quest Diagnostics (NYSE:DGX) Stock Price Expected to Rise, Barclays Analyst Says - MarketBeat — MarketBeat positive
- NEWS BofA raises Quest Diagnostics stock price target on strong volumes - Investing.com — Investing.com positive
Generated 2026-09-14T06:36:56Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMSupplierbilling operations third party10-K Item 1A: 'The majority of billing and related operations for our Company are being provided by a third party under the Company's oversight'
Material Events(8-K, last 90d)
- 2026-03-12Item 5.02LOWTimothy Wentworth (former CEO of Walgreens Boots Alliance) elected as independent director on March 9, 2026. Appointed to Compensation and Leadership Development Committee and Quality and Compliance Committee. Received prorated RSU grant of approximately $43,000.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
1 floor-breaker
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $235.02, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; Near 52-week high (4.9% away). Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $242.25 (+3.1%), stop $225.16 (−4.4%), A.R:R -1.1:1. Score 5.4/10, moderate confidence.
Take-profit target: $242.25 (-5.5% upside). Target $242.25 (+3.1%), stop $225.16 (−4.4%), A.R:R -1.1:1. Stop-loss: $225.16.
Analyst target reached - limited upside remaining; Near 52-week high (4.9% away); V7 low-quality RISK_OFF penalty: -0.5 (Q=5.4).
Quest Diagnostics Incorporated trades at a P/E of 24.9 (forward 19.5). TrendMatrix value score: 5.4/10. Verdict: Hold.
23 analysts cover DGX with a consensus score of 3.8/5. Average price target: $247.
What does Quest Diagnostics Incorporated do?Quest Diagnostics provides diagnostic information services through laboratory testing across the United States, serving...
Quest Diagnostics provides diagnostic information services through laboratory testing across the United States, serving approximately one-third of the adult US population annually through physician, hospital, patient, and consumer channels. The company generated $11.0 billion in net revenues in 2025 from ~244 million test requisitions billed primarily to Medicare, Medicaid, and commercial health plans.