Quest Diagnostics Incorporated (DGX) Up 6.7% — Is Now the Right Time to Deploy Cash?
Quest Diagnostics Incorporated (DGX) showed strong performance in the latest session, advancing 6.66% to close at $203.99, gaining $12.74 from the prior session. The move pushed the stock decisively into bullish territory, as shares surged past their recent trading range on the NYSE. Trading activity came in at 609,119 shares, below the 90-day average volume of 1,077,769, indicating that the latest upswing unfolded with relatively light participation. Even with the lower turnover, the magnitude of the gain stands out as the stock continues gaining ground in the current market environment.
With this latest advance, DGX now sits above its prior 52-week high of $197.55 set on Oct. 21, 2025, marking a fresh breakout and reinforcing the stock’s upward momentum. Price action has turned notably more bullish as the stock moves into uncharted territory for the past year, signaling strengthening confidence among traders. Within the broader Health Care space, DGX’s single-session jump outpaced many large sector peers such as Medtronic (MDT), HCA Healthcare (HCA), and Cardinal Health (CAH), highlighting relative strength in the name. Overall, the recent session underscores a strong upward bias, with DGX solidly outperforming many comparable stocks as it extends its advance beyond the previous 52-week ceiling.
Why Quest Diagnostics Incorporated Price is Moving Higher
Quest Diagnostics is attracting bullish attention after delivering a clean combination of earnings strength and confident outlook. The latest quarter showed revenues of $2.81 billion, up 7.1% year over year, with adjusted EPS climbing 8.5% to $2.42. That builds on a strong full-year 2025 performance, where revenues advanced 11.8% to $11.04 billion and adjusted EPS rose 10.3% to $9.85. Investors view this as evidence that Quest’s core diagnostics business is growing at a healthy clip, supported by 13.18% revenue growth and solid profitability with an 8.93% profit margin. Management reinforced that view with 2026 revenue guidance of $11.70 billion–$11.82 billion and adjusted EPS of $10.50–$10.70, both comfortably ahead of prior Wall Street expectations. This combination of momentum and above-consensus guidance has helped fuel the recent move to a fresh 52‑week high.
Positive capital return actions are adding another layer of investor enthusiasm. The board approved a 7.5% increase in the quarterly payout to $0.86 per share, marking the 15th straight year of dividend growth, and expanded the share repurchase authorization by $1 billion. Those steps signal confidence in cash flow durability and balance-sheet strength, which is resonating with institutions looking for defensive growth within Health Care Equipment and Services. Quest’s combination of accelerating earnings, upbeat guidance and increased capital returns stands out, helping drive the stock’s upward momentum.
What is the Quest Diagnostics Incorporated Rating - Should I Buy?
Weiss Ratings assigns DGX a B rating. Current recommendation is Buy. That places Quest Diagnostics Incorporated in the stronger tier of Health Care names we track, indicating an overall favorable balance between potential reward and risk for investors looking at this part of the market.
The B rating is supported by the Good Growth Index and Good Efficiency Index. Double‑digit revenue expansion of 13.18% paired with a profit margin of 8.93% and return on equity of 14.35% indicate a business that is growing while generating solid returns on capital. The Excellent Solvency Index adds a further positive, signaling a balance sheet positioned to support operations and withstand industry or macroeconomic pressures.
On the risk and performance side, the Fair Total Return Index and Fair Volatility Index show that, while DGX has not been a standout performer versus all alternatives, its price behavior has been relatively manageable for investors. A forward P/E of 22.36 places the stock in a valuation range that is neither deeply discounted nor excessively speculative for an established Health Care name, aligning with a steady, rather than aggressive, growth profile.
Within its sector, Quest Diagnostics holds its own against peers such as Medtronic plc (MDT, B), HCA Healthcare, Inc. (HCA, B) and Cardinal Health, Inc. (CAH, B). This clustering of B ratings across leading Health Care companies indicates DGX is competitively positioned among high‑quality peers, offering investors exposure to a financially sound, operationally efficient player with an attractive, risk‑adjusted profile.
About Quest Diagnostics Incorporated
Quest Diagnostics Incorporated (DGX) is a leading provider of diagnostic information services within the health care equipment and services industry. The company operates an extensive network of clinical laboratories and patient service centers across the United States, offering a broad menu of tests ranging from routine blood work and wellness screenings to complex molecular diagnostics and genetic testing. Quest plays a central role in the health care ecosystem by delivering timely, accurate test results that support physicians, hospitals, employers, and health plans in making informed medical decisions and managing population health.
The company’s offerings span core clinical testing, anatomic pathology, advanced diagnostics, and specialized services in areas such as oncology, cardiology, infectious disease, and women’s health. Quest Diagnostics also provides drug monitoring, employer health screening, and risk assessment services, helping organizations manage health outcomes and compliance. Its scale, nationwide logistics infrastructure, and investment in laboratory automation and information technology give it meaningful efficiencies and help support consistent quality and turnaround times.
Quest is recognized as one of the major national diagnostic laboratories, competing effectively through its brand, breadth of testing capabilities, and long-standing relationships with health systems and managed care organizations. The company has also been expanding its consumer-initiated testing and digital health offerings, allowing patients to access certain tests directly and view results online. By combining specialized clinical expertise with broad access points and integrated health IT connections, Quest Diagnostics occupies a strong competitive position in the health care services landscape and remains a critical partner in clinical decision support and care management.
Investor Outlook
With Quest Diagnostics Incorporated carrying a B (Buy) Weiss Rating, the stock appears favorably positioned for investors watching for potential continued gains in Health Care. The key will be how DGX responds around recent upside levels and whether sector demand for diagnostic services supports further upside that can sustain its current risk/reward profile. See full rankings of all B-rated Health Care stocks inside the Weiss Stock Screener.
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