Here's Why Quest Diagnostics (DGX) is a Strong Growth Stock

Zacks
03 Feb

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.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why This 1 Growth Stock Should Be On Your Watchlist

Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Quest Diagnostics (DGX)

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 boasts a Growth Style Score of B and VGM Score of A, and holds a Zacks Rank #2 (Buy) rating. Its bottom-line is projected to rise 8.7% year-over-year for 2025, while Wall Street anticipates its top line to improve by 9%.

Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.01 to $9.71 per share. DGX boasts an average earnings surprise of 3.8%.

Quest Diagnostics is also cash rich. The company has generated cash flow growth of 5.3%, and is expected to report cash flow expansion of 4.6% in 2025.

With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, DGX should be on investors' short lists.

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