Quest Diagnostics Stock Analysis, Valuation (NYSE:DGX)

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$100.25 $0.19 (0.19%) DGX stock closing price Oct 12, 2018 (Closing)

View the Quest Diagnostics stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for DGX stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Quest Diagnostics Inc Stock Rating 3.8/5

Amigobulls DGX stock analysis takes into account various financial ratios like relative valuation, Quest Diagnostics revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check Quest Diagnostics dividend performance. We compare Quest Diagnostics valuation with its sector peers to gauge relative attractiveness of DGX stock. Based on a company's historical fundamentals we arrive at Quest Diagnostics stock rating which is indicative of the company's financial performance.

Should you buy DGX stock?

  • The TTM operating margin was good at 15.05 for Quest Diagnostics.
  • Net margins stood at a healthy 10.2% (average) for Quest Diagnostics in the Trailing Twelve Months.
  • The Quest Diagnostics stock currently trades at a price to earnings ratio of 16.6, compared to the sector average of 24.2. We rate this as a positive.
  • When compared with the Medical sector average PS ratio of 6.3, the price-to-sales ratio of 1.8 for DGX stock is attractive.
  • Quest Diagnostics's return on invested capital of 10 is good.
  • The LTM ROE of 16.2 for Quest Diagnostics is attractive.
  • The company has a healthy free cash flow margin of 5.7.

Should you sell DGX stock?

  • Quest Diagnostics sales declined by -0.8% year on year in 2018-03.
  • Revenue growth of 1 has been weak over the last 5 years.
  • With a debt/equity ratio of 0.76, Quest Diagnostics is highly leveraged in comparison to Medical peers.

Comments on this video and Quest Diagnostics stock

Amigobulls Quest Diagnostics stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

Quest Diagnostics revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Quest Diagnostics stock.