Quest Diagnostics Stock Analysis, Valuation (NYSE:DGX)

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$111.44 $1.9 (1.73%) DGX stock closing price Aug 17, 2018 (Closing)

Investors can watch the Amigobulls Quest Diagnostics stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons 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 3.9/5

Amigobulls DGX stock analysis uses latest quarter 2018 Q2 financial data like Quest Diagnostics revenue growth, profit margins and cash flows. We compare Quest Diagnostics valuation with its sector peers to gauge relative attractiveness of DGX stock. Quest Diagnostics stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy DGX stock?

  • Quest Diagnostics's average operating margin of 14.92 was exceptional.
  • LTM Net margins were good at 10.6% for Quest Diagnostics.
  • The price to earnings multiple of 18.4 is attractive when compared with the sector average PE ratio of 24.8.
  • The lower PS ratio 2 for DGX stock versus Medical sector average of 6.2 is a positive for the company.
  • Quest Diagnostics generates a high return on invested capital of 10.3.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Quest Diagnostics at 16.3.
  • The company has a good Free Cash Flow (FCF) margin of 12.8.

Should you sell DGX stock?

  • Quest Diagnostics sales shrank by -1.2% year-over-year in 2018-06.
  • Over the last 5 years, the company registered a poor revenue growth of 1.2.
  • Quest Diagnostics has a debt/equity ratio of 0.71, which is worse than the average in the Medical sector.

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. Company's fundamentals remain one of the key driver of DGX stock and helps investors in making good buy and sell decision.

Quest Diagnostics revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.