DailyIQ
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Sector:HealthcareAll sectors
Last updated 5 minutes ago

DGX·Quest Diagnostics Incorporated

$.
-. (-.%)
After Hours
High
$209.86
Open
$208.25
Market Cap
22.96B
52W High
$219.20
Low
$207.03
P. Close
$207.43
P/E
22.42
52W Low
$164.65
Fwd P/E
17.77
DailyIQ Est.
$227.16
Technical Score (1D)
68
BUY
News Sentiment
68
BULLISH
Quest Diagnostics (DGX) has just confirmed that it meets the “Best Dividend” criteria, reporting a 1.59 % yield and a 35 % payout ratio, which signals that the company has ample earnings to support future dividend growth. The low payout ratio indicates that DGX is not heavily constrained by cash flow and can potentially raise dividends if earnings remain strong. For the next 1–10 trading days, this dividend stability is likely to attract income‑focused investors, which could increase demand for the shares and provide a cushion against short‑term volatility. The announcement also underscores DGX’s robust profitability, suggesting that the company can weather earnings pressure better than peers with higher payout ratios. Traders should therefore keep an eye on the upcoming earnings release, as management’s guidance on revenue growth and cost control will clarify whether the dividend policy will remain unchanged. Watch for any commentary on the sustainability of the payout ratio, as a shift could alter the attractiveness of the dividend. Additionally, monitor any mention of changes to the dividend policy, such as a potential increase or a temporary reduction, which would directly impact investor sentiment. Finally, stay alert for any macro or regulatory developments that could affect the laboratory services sector, as these could influence DGX’s earnings trajectory and, by extension, its dividend outlook.
Earnings Summary
Quest Diagnostics (DGX) is a leading provider of diagnostic testing and related services, operating primarily in the United States and internationally, and serves a diverse client base that includes physicians, hospitals, health plans, and pharmaceutical companies; it delivers clinical testing, anatomic pathology, risk assessment, and IT solutions through a broad laboratory network and patient service centers. In its most recent reporting cycle, DGX posted Q1‑2026 revenue of $2.895 billion, up 3.2% from the $2.806 billion reported in Q4‑2025, while EPS rose 3.3% to $2.50 from $2.42; compared with Q3‑2025 revenue of $2.816 billion (up 2.8% from Q2‑2025’s $2.761 billion) and a slight EPS decline from $2.62 to $2.60, the company demonstrated a modest acceleration in top‑line growth and a rebound in earnings momentum. Across the six quarters with actual results, DGX has beaten analyst EPS estimates in five instances (Q4‑2024, Q1‑2025, Q2‑2025, Q3‑2025, Q1‑2026) and missed only in Q4‑2025, underscoring a strong earnings track record despite a single pricing‑related dip. Historically, the firm has maintained steady YoY revenue growth—9.4% in Q1‑2026 versus Q1‑2025—and EPS growth of 13.5% over the same period, while consistently outperforming peers in the diagnostics sector; the pattern of revenue expansion coupled with occasional EPS misses reflects a focus on pricing power and cost discipline. Recent news highlights a surge in DGX’s stock to an intraday high driven by optimism around high‑margin specialty tests, the New York State approval of its Haystack MRD liquid‑biopsy test that could expand oncology testing volumes, and a partnership with Attunio Health to launch an AI‑powered precision psychiatry platform, all of which signal diversification and potential revenue acceleration. Going forward, investors should watch for the Q2‑2026 earnings release to confirm revenue and margin trends, monitor uptake and payer reimbursement for the Haystack MRD test, and assess cost‑management commentary, as any deviation from guidance or regulatory shifts could materially influence the company’s valuation trajectory.

EPS

EstBeatMiss
$2.05$2.27$2.49$2.71$2.92Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$2.82 - -
Q1'26$2.37$2.50+5.6%
Q4'25$2.45$2.42-1.4%
Q3'25$2.50$2.60+3.9%
Q2'25$2.57$2.62+1.9%
Q1'25$2.15$2.21+2.8%

Revenue

EstBeatMiss
$2.6B$2.7B$2.8B$2.9B$3.1BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$3.0B - -
Q1'26$2.8B$2.9B+2.4%
Q4'25$2.8B$2.8B+0.9%
Q3'25 - $2.8B -
Q2'25 - $2.8B -
Q1'25 - $2.7B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

DGX Stock Snapshot

DGX is currently trading at $207.50, giving Quest Diagnostics Incorporated a market cap of 22.96B and a P/E ratio of 22.4. Today's range spans $207.03–$209.86, with shares opening at $208.25 and moving up $0.07 (0.0%) from the prior close. DailyIQ's technical score sits at 68/100 (BUY) with a news sentiment reading of 68/100.

Over the past year DGX has traded between $164.65 and $219.20 - the current price is +26.0% off the 52-week low and -5.3% from the high. 25 analysts cover the stock with a Hold consensus and a mean 12-month target of $223.44 (range $184.00–$245.00), implying upside of +7.7%.

DGX is showing the kind of bullish setup that active managers add to on dips - 68/100 (BUY), bullish sentiment at 68/100, 22.96B market cap in Healthcare, price $207.50 (in the upper portion of its 52-week range). The current P/E ratio stands at 22.4. At this cap tier, the combination of technical confirmation and positive sentiment is what separates speculative bullish positions from high-conviction ones. Annual range: $164.65–$219.20. The setup is in the latter category.

The combination of a BUY signal (68/100) and bullish news sentiment (68/100) puts DGX on the screens of active managers who run quality-momentum overlays — a cohort that can build meaningful positions at 22.96B in Healthcare market cap without immediately moving the stock. At $207.50 (in the upper portion of its 52-week range in the $164.65–$219.20 range), the entry discipline is clean and the potential re-rating if sentiment continues to improve is meaningful.