We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DGX Stock Gains Following a New Joint Venture With Corewell Health
Read MoreHide Full Article
Key Takeaways
Quest Diagnostics formed a joint venture with Corewell Health to expand lab services in Michigan.
DGX stock gained 1% after the announcement, closing at $180.36 on Wednesday.
The venture will operate from a 100,000-sq-ft Southfield lab with advanced diagnostic technologies.
Quest Diagnostics (DGX - Free Report) recently signed a definitive agreement to form a joint venture (JV) with Corewell Health, a not-for-profit health system. The JV, Diagnostic Lab of Michigan, LLC, is aimed at expanding access to innovative, quality and affordable laboratory services in Michigan.
DGX Stock’s Likely Trend Following the News
Since the announcement, DGX shares have risen 1%, closing Wednesday’s session at $180.36. The development advances the company’s strategy to expand in growth areas through collaborations with top health systems, building on the various successful laboratory JVs in other parts of the United States. Accordingly, we expect the market sentiment on DGX stock to remain positive surrounding this news.
Quest Diagnostics has a market capitalization of $20.10 billion at present. Going by the Zacks Consensus Estimate, the company’s 2025 earnings are expected to grow 9.9% over 2024. It delivered an earnings beat of 2.1%, on average, in the trailing four quarters.
More About DGX’s JV
The Diagnostic Lab of Michigan, LLC will be located in a state-of-the-art laboratory facility at the Corewell Health Southfield Center in Southfield. The 100,000-square-foot facility will feature advanced technologies, such as automated microbiology and high-throughput molecular testing.
In addition, Quest Diagnostics will provide the full complement of its Collaborative Lab Solutions (Co-Lab), including reference laboratory testing, professional laboratory management services, laboratory workforce and supply-chain management, and analytics, for all of Corewell Health's 21 inpatient and outpatient hospital labs.
More on the News
The transaction is expected to be completed in the first quarter of 2026. The companies intend to begin phases of the supply chain and reference agreements in late 2025, although most aspects of the laboratory services agreement, including laboratory management, will begin in 2026.
Image Source: Zacks Investment Research
Industry Prospects Favor DGX
Per a Grand View Research report, the global clinical laboratory services market size is projected to reach $286.77 billion by 2030, at a CAGR of 3.82% from 2025 to 2030. The market is witnessing growth due to factors such as the increasing burden of chronic diseases, demand for personalized medicine and preventative care, and technological advancements like AI and digital pathology.
Another Development by DGX
On Monday, Quest Diagnostics announced that its Haystack MRD test for identifying MRD-positive patients with stage II colorectal cancer following curative-intent surgical treatment has received Breakthrough Device Designation from the Food and Drug Administration (“FDA”). The new designation adds to growing evidence of the value of the Haystack MRD test for both clinical and pharmaceutical applications.
DGX Stock Price Performance
In the past year, shares of DGX have rallied 15% compared with the industry’s flat growth.
DGX’s Zacks Rank and Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold).
Estimates for Envista’s 2025 earnings per share have increased 7.6% in the past 30 days. Shares of the company have rallied 16.7% in the past year compared with the industry’s 5.2% growth. Its earnings yield of 5.4% has also outpaced the industry’s -0.9% yield. NVST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.5%.
Boston Scientific’s shares have rallied 31.3% in the past year. Estimates for the company’s 2025 earnings per share have increased 2.4% to $2.98 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 8.1%. In the last reported quarter, it posted an earnings surprise of 4.2%.
Estimates for IDEXX Laboratories’ 2025 earnings per share have climbed 3.1% to $12.55 in the past 30 days. Shares of the company have jumped 29.1% in the past year against the industry’s 14% decline. IDEXX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.1%. In the last reported quarter, it delivered an earnings surprise of 9.7%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DGX Stock Gains Following a New Joint Venture With Corewell Health
Key Takeaways
Quest Diagnostics (DGX - Free Report) recently signed a definitive agreement to form a joint venture (JV) with Corewell Health, a not-for-profit health system. The JV, Diagnostic Lab of Michigan, LLC, is aimed at expanding access to innovative, quality and affordable laboratory services in Michigan.
DGX Stock’s Likely Trend Following the News
Since the announcement, DGX shares have risen 1%, closing Wednesday’s session at $180.36. The development advances the company’s strategy to expand in growth areas through collaborations with top health systems, building on the various successful laboratory JVs in other parts of the United States. Accordingly, we expect the market sentiment on DGX stock to remain positive surrounding this news.
Quest Diagnostics has a market capitalization of $20.10 billion at present. Going by the Zacks Consensus Estimate, the company’s 2025 earnings are expected to grow 9.9% over 2024. It delivered an earnings beat of 2.1%, on average, in the trailing four quarters.
More About DGX’s JV
The Diagnostic Lab of Michigan, LLC will be located in a state-of-the-art laboratory facility at the Corewell Health Southfield Center in Southfield. The 100,000-square-foot facility will feature advanced technologies, such as automated microbiology and high-throughput molecular testing.
In addition, Quest Diagnostics will provide the full complement of its Collaborative Lab Solutions (Co-Lab), including reference laboratory testing, professional laboratory management services, laboratory workforce and supply-chain management, and analytics, for all of Corewell Health's 21 inpatient and outpatient hospital labs.
More on the News
The transaction is expected to be completed in the first quarter of 2026. The companies intend to begin phases of the supply chain and reference agreements in late 2025, although most aspects of the laboratory services agreement, including laboratory management, will begin in 2026.
Image Source: Zacks Investment Research
Industry Prospects Favor DGX
Per a Grand View Research report, the global clinical laboratory services market size is projected to reach $286.77 billion by 2030, at a CAGR of 3.82% from 2025 to 2030. The market is witnessing growth due to factors such as the increasing burden of chronic diseases, demand for personalized medicine and preventative care, and technological advancements like AI and digital pathology.
Another Development by DGX
On Monday, Quest Diagnostics announced that its Haystack MRD test for identifying MRD-positive patients with stage II colorectal cancer following curative-intent surgical treatment has received Breakthrough Device Designation from the Food and Drug Administration (“FDA”). The new designation adds to growing evidence of the value of the Haystack MRD test for both clinical and pharmaceutical applications.
DGX Stock Price Performance
In the past year, shares of DGX have rallied 15% compared with the industry’s flat growth.
DGX’s Zacks Rank and Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Envista (NVST - Free Report) , Boston Scientific (BSX - Free Report) and IDEXX Laboratories (IDXX - Free Report) . Envista, Boston Scientific and IDEXX Laboratories carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Envista’s 2025 earnings per share have increased 7.6% in the past 30 days. Shares of the company have rallied 16.7% in the past year compared with the industry’s 5.2% growth. Its earnings yield of 5.4% has also outpaced the industry’s -0.9% yield. NVST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.5%.
Boston Scientific’s shares have rallied 31.3% in the past year. Estimates for the company’s 2025 earnings per share have increased 2.4% to $2.98 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 8.1%. In the last reported quarter, it posted an earnings surprise of 4.2%.
Estimates for IDEXX Laboratories’ 2025 earnings per share have climbed 3.1% to $12.55 in the past 30 days. Shares of the company have jumped 29.1% in the past year against the industry’s 14% decline. IDEXX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.1%. In the last reported quarter, it delivered an earnings surprise of 9.7%.