Is Quest Diagnostics Stock Outperforming the Nasdaq?
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With a market cap of $20 billion, Quest Diagnostics Incorporated (DGX) is a leading provider of diagnostic testing services in the United States and internationally. The company operates through two primary business groups: Diagnostic Information Services and Diagnostic Solutions, serving a diverse range of clients, including physicians, hospitals, insurers, and government agencies.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Quest Diagnostics fits this criterion perfectly, exceeding the mark. Quest focuses on accelerating growth through strategic partnerships and innovation, while driving operational excellence across its customer value chain and IT infrastructure.
Despite this, shares of the Secaucus, New Jersey-based company have declined 1.6% from its 52-week high of $182.38. DGX stock has increased 7.8% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 9.9% rise over the same time frame.
In the longer term, DGX stock is up nearly 19% on a YTD basis, exceeding NASX’s marginal gain. In addition, shares of the medical laboratory operator have soared 29.8% over the past 52 weeks, outperforming NASX’s 9.7% return over the same time frame.
Despite a few fluctuations, the stock has been trading mostly above its 50-day and 200-day moving averages since last year.
Shares of Quest Diagnostics climbed 6.8% on Apr. 22 as the company reported Q1 2025 adjusted EPS of $2.21 per share and revenue of $2.7 billion, beating expectations. Strong demand for diagnostic tests, particularly from older Americans rescheduling delayed non-urgent surgeries, contributed to the performance. Additionally, strategic hospital lab management deals and a 12% year-over-year sales increase reinforced investor confidence, even as Quest maintained its annual profit forecast of $9.55 to $9.80 per share.
Moreover, DGX stock has outpaced its rival Thermo Fisher Scientific Inc. (TMO). TMO stock has declined 28.6% over the past 52 weeks and 23.5% on a YTD basis.
Despite the stock’s outperformance over the past year, analysts remain cautiously optimistic on DGX. The stock has a consensus rating of “Moderate Buy” from 17 analysts in coverage, and as of writing, DGX is trading below the mean price target of $186.59.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.