Is Quest Diagnostics Stock Outperforming the Nasdaq?
Quest Diagnostics Incorporated (DGX), headquartered in Secaucus, New Jersey, offers diagnostic testing and services globally. Valued at $27.2 billion by market cap, the company operates a national network of full-service laboratories, rapid response laboratories, and patient service centers. DGX offers esoteric, routine medical, drugs of abuse, and non-hospital-based anatomic pathology testing services.
Companies worth $10 billion or more are generally described as "large-cap stocks," and DGX perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the diagnostics & research industry. DGX is a leader in diagnostic information services, with its brand synonymous with quality and reliability. Generating over 95% of revenue from clinical testing and related services, it leverages about 2,300 patient service centers to ensure broad accessibility for patients and providers, reinforcing its market position and competitive edge in service delivery.
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Despite its notable strength, DGX shares touched their 52-week high of $248.84 in the last trading session. Over the past three months, DGX stock has gained 25.6%, outperforming the Nasdaq Composite's ($NASX) 2.3% gains during the same time frame.
In the longer term, shares of DGX rose 41.1% on a YTD basis and climbed 33.4% over the past 52 weeks, outperforming NASX's YTD gains of 16.7% and 19.8% returns over the last year.
To confirm the bullish trend, DGX has been trading above its 200-day moving average over the past year, with slight fluctuations. The stock has been trading above its 50-day moving average since early June, with minor fluctuations.
DGX's outperformance has been driven by steady growth in core routine testing alongside rapid expansion in high-margin advanced diagnostics. Accelerating demand for specialized testing, demonstrated by double-digit volume growth in Alzheimer's blood tests, cardiometabolic health panels, and liver-fibrosis screenings has expanded operating margins and propelled top-line earnings beats. Coupled with strategic acquisitions, partnerships, and consumer-initiated testing initiatives, these strong organic volume trends have fortified investor confidence and allowed the company to raise its full-year guidance.
DGX's rival, Labcorp Holdings Inc. (LH) has lagged behind the stock, with a 28% uptick on a YTD basis and 15.8% gains over the past 52 weeks.
Wall Street analysts are reasonably bullish on DGX's prospects. The stock has a consensus "Moderate Buy" rating from the 17 analysts covering it, and the mean price target of $250.88 suggests a potential upside of 2.5% from current price levels.
