It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Headquartered in Secaucus, New Jersey, Quest Diagnostics Inc. provides a broad range of diagnostic information services to patients, clinicians and healthcare organizations. The company provide services to Independent Delivery Networks (IDN) throughout the United States, through its Professional Lab Services (PLS) offerings, which allow them to build and execute their laboratory strategy, improve quality, reduce healthcare costs and focus on core competencies. The company is a key provider of reference testing for approximately half of the hospitals in the United States.
DGX sits at a Zacks Rank #2 (Buy), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Medical - Outpatient and Home Healthcare industry's P/E of 25X, shares of Quest Diagnostics are trading at a forward P/E of 17.3X. DGX also has a PEG Ratio of 2.8, a Price/Cash Flow ratio of 12.1X, and a Price/Sales ratio of 1.8X.
A company's earnings performance is important for value investors as well. For fiscal 2024, four analysts revised their earnings estimate higher in the last 60 days for DGX, while the Zacks Consensus Estimate has increased $0.02 to $8.89 per share. DGX also holds an average earnings surprise of 3.3%.
Investors should take the time to consider DGX for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.