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Quest Diagnostics Incorporated (DGX) Soars to 52-Week High, Time to Cash Out?
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A strong stock as of late has been Quest Diagnostics (DGX - Free Report) . Shares have been marching higher, with the stock up 10.5% over the past month. The stock hit a new 52-week high of $237.78 in the previous session. Quest Diagnostics has gained 31.3% since the start of the year compared to the -0.1% gain for the Zacks Medical sector and the 20.4% return for the Zacks Medical - Outpatient and Home Healthcare industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 23, 2026, Quest Diagnostics reported EPS of $3.12 versus consensus estimate of $2.81 while it beat the consensus revenue estimate by 2.15%.
For the current fiscal year, Quest Diagnostics is expected to post earnings of $10.72 per share on $11.83 in revenues. This represents a 8.83% change in EPS on a 7.25% change in revenues. For the next fiscal year, the company is expected to earn $11.56 per share on $12.39 in revenues. This represents a year-over-year change of 7.84% and 4.69%, respectively.
Valuation Metrics
Though Quest Diagnostics has recently hit a 52-week high, what is next for Quest Diagnostics? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Quest Diagnostics has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.9X. On a trailing cash flow basis, the stock currently trades at 15X versus its peer group's average of 14.8X. Additionally, the stock has a PEG ratio of 2.72. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Quest Diagnostics currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Quest Diagnostics fits the bill. Thus, it seems as though Quest Diagnostics shares could have a bit more room to run in the near term.
How Does DGX Stack Up to the Competition?
Shares of DGX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Aveanna Healthcare Holdings Inc. (AVAH - Free Report) . AVAH has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Aveanna Healthcare Holdings Inc. beat our consensus estimate by 38.46%, and for the current fiscal year, AVAH is expected to post earnings of $0.73 per share on revenue of $2.65 billion.
Shares of Aveanna Healthcare Holdings Inc. have gained 7.1% over the past month, and currently trade at a forward P/E of 12.44X and a P/CF of 13.17X.
The Medical - Outpatient and Home Healthcare industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DGX and AVAH, even beyond their own solid fundamental situation.
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Quest Diagnostics Incorporated (DGX) Soars to 52-Week High, Time to Cash Out?
A strong stock as of late has been Quest Diagnostics (DGX - Free Report) . Shares have been marching higher, with the stock up 10.5% over the past month. The stock hit a new 52-week high of $237.78 in the previous session. Quest Diagnostics has gained 31.3% since the start of the year compared to the -0.1% gain for the Zacks Medical sector and the 20.4% return for the Zacks Medical - Outpatient and Home Healthcare industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 23, 2026, Quest Diagnostics reported EPS of $3.12 versus consensus estimate of $2.81 while it beat the consensus revenue estimate by 2.15%.
For the current fiscal year, Quest Diagnostics is expected to post earnings of $10.72 per share on $11.83 in revenues. This represents a 8.83% change in EPS on a 7.25% change in revenues. For the next fiscal year, the company is expected to earn $11.56 per share on $12.39 in revenues. This represents a year-over-year change of 7.84% and 4.69%, respectively.
Valuation Metrics
Though Quest Diagnostics has recently hit a 52-week high, what is next for Quest Diagnostics? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Quest Diagnostics has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.9X. On a trailing cash flow basis, the stock currently trades at 15X versus its peer group's average of 14.8X. Additionally, the stock has a PEG ratio of 2.72. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Quest Diagnostics currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Quest Diagnostics fits the bill. Thus, it seems as though Quest Diagnostics shares could have a bit more room to run in the near term.
How Does DGX Stack Up to the Competition?
Shares of DGX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Aveanna Healthcare Holdings Inc. (AVAH - Free Report) . AVAH has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Aveanna Healthcare Holdings Inc. beat our consensus estimate by 38.46%, and for the current fiscal year, AVAH is expected to post earnings of $0.73 per share on revenue of $2.65 billion.
Shares of Aveanna Healthcare Holdings Inc. have gained 7.1% over the past month, and currently trade at a forward P/E of 12.44X and a P/CF of 13.17X.
The Medical - Outpatient and Home Healthcare industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DGX and AVAH, even beyond their own solid fundamental situation.