Quest Diagnostics Stock Analysis, Valuation (NYSE:DGX)

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$111.18 $0.46 (0.42%) DGX stock closing price Jun 21, 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 3.6/5

Amigobulls DGX stock analysis uses latest quarter 2018 Q1 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?

  • 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 19, compared to the sector average of 25. We rate this as a positive.
  • When compared with the Medical sector average PS ratio of 6.5, the price-to-sales ratio of 2 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 -sectordesc- 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. 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.