DGX:NYSEQuest Diagnostics Incorporated Analysis

Quest Diagnostics (DGX) is trading around $195, which is modestly above its DCF‑derived fair value of $110 but enjoys a forward PE of 16.7 that is well below the industry average of 27.6, suggesting a relative valuation advantage. Revenue growth of 9.2% YoY and a solid gross margin of 33% indicate a healthy operating profile, while the dividend yield of 1.76% with a 36% payout ratio appears sustainable given free cash flow of $948 M. The stock’s technical picture is mixed: a neutral trend, support at $186, resistance near $199, and a bullish MACD histogram despite a 30‑day volatility of 24% and a low beta of 0.6. Recent news of a quarterly dividend declaration adds a modest income cushion, but a 5% post‑earnings price dip underscores short‑term weakness. Overall, analysts remain optimistic with a median price target of $225, implying roughly 14% upside, and a consensus “Buy” recommendation.