Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried- ...

Quest Diagnostics (DGX) is gaining from strong existing customer relationships, new customer wins, broad health plan access and advanced diagnostics offerings. The stock carries a Zacks Rank #2 (Buy) currently. Quest Diagnostics has been experiencing robust volume growth in its core business (excluding COVID Testing), banking on the growth of new physician and hospital customers, a more favorable test mix with increased use of advanced diagnostics, continued strength in healthcare utilization and the ongoin ...

Quest Diagnostics Inc.'s (DGX) sustained growth momentum within the legacy base business is poised to help it grow in the upcoming quarters. Strong progress in the company's highly specialized Advanced Diagnostics offerings is encouraging. Additionally, the cost discipline program, Invigorate, is boosting productivity through automation and AI. However, a debt-laden balance sheet and challenges from fierce competition are concerning for DGX's operations. In the past year, this Zacks Rank #2 (Buy) stock has ...

Quest achieves top score of 100 on 2024 Disability Equality Index® Best Places to Work for Disability Inclusion SECAUCUS, N.J., Aug. 1, 2024 /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), a leading provider of diagnostic information services, announced it has been named to the 2024 Disability Equality Index® Best Places to Work for Disability Inclusion by Disability: IN and the American Association of People with Disabilities (AAPD). Quest Diagnostics Named a 'Best Place to Work for Disability Inclusion' fo ...

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels. DGX has seen stronger estimate revision activity and sports more attractive valuation metrics than PNTG, so it seems like value investors will conclude that DGX is the superior option right now. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The ...

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. One company value investors might notice is Quest Diagnostics (DGX) . DGX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.65, which compares to its indust ...

BALTIMORE, Md. and MONTREAL, July 29, 2024 /PRNewswire/ -- Haystack Oncology, a Quest Diagnostics (NYSE: DGX) company, announced today a research collaboration with Dr. Simon Turcotte, hepatopancreatobiliary surgeon and scientist at Université de Montréal's affiliated hospital research centre, the CRCHUM, to utilize Haystack Oncology's personalized MRD technology (Haystack MRD™) to evaluate treatment effectiveness in patients with metastatic colorectal cancer (mCRC) with metastases confined to the liver. "O ...

In my previous analysis of Quest Diagnostics (NYSE:DGX), I examined their Q2 2023 eamings report, which produced a slight beat on EPS and revenue. The company did report a slight decline in COVID-related revenues, however, they were able to log a 9.5% year-over-year growth in revenue. At that time, I believed that Quest's efforts in expanding its clinical services, and amassing acquisitions, were going to lead to additional growth. As a result, I was bullsh on DGX, especially considering Quest's healthy div ...

Financial Performance - Net income attributable to Quest Diagnostics for the three months ended June 30, 2024, was $229 million, compared to $235 million for the same period in 2023, representing a decrease of approximately 2.6%[28] - The company reported basic earnings per share of $2.05 for the three months ended June 30, 2024, down from $2.08 in the same period of 2023, reflecting a decline of 1.4%[28] - Net revenues for Q2 2024 were $2,397 million, a 2.5% increase from $2,338 million in Q2 2023[74] - Diagnostic Information Services (DIS) revenues were $2,333 million, up 2.8% from $2,268 million in the same period last year[74] - Operating income increased to $355 million, reflecting a 1.9% growth compared to $348 million in Q2 2023[74] - Net income attributable to Quest Diagnostics was $229 million, a decrease of 2.4% from $235 million in Q2 2023[74] - Diluted earnings per share were $2.03, down 1.0% from $2.05 in the prior year[74] - For the six months ended June 30, 2024, net revenues increased by 2.0% compared to the prior year period[121] Cash and Investments - Quest Diagnostics' cash and cash equivalents and restricted cash at the end of the period were $271 million, an increase from $126 million at the beginning of the period[11] - The company utilized $413 million in net cash for investing activities during the six months ended June 30, 2024, compared to $840 million in the same period of 2023, indicating a reduction of 50.9%[10] - The company reported cash paid for business acquisitions of $106 million for the three months ended June 30, 2024, compared to $578 million for the same period in 2023, a decrease of 81.7%[40] - The company plans to acquire LifeLabs for approximately $985 million, including net debt, with the transaction expected to close by the end of 2024[72] - The company has entered into definitive agreements to acquire LifeLabs and select assets of laboratory services businesses from Allina Health and OhioHealth, expected to close in the second half of 2024[164] Debt and Financing - As of June 30, 2024, long-term debt decreased to $8 million from $13 million as of December 31, 2023, representing a 38.5% reduction[37] - Interest expense for the three months ended June 30, 2024, was $(44) million, compared to $(37) million for the same period in 2023, reflecting an increase of 18.9%[40] - Interest paid increased to $61 million for the three months ended June 30, 2024, from $48 million in the same period of 2023, a rise of 27.1%[40] - Net cash used in financing activities for the six months ended June 30, 2024 was $(516) million, a change of $629 million compared to the prior year period[157] - As of June 30, 2024, the company had $1.2 billion of borrowing capacity available under existing credit facilities, with no outstanding borrowings[165] Operational Efficiency - Quest Diagnostics aims to achieve 3% annual cost savings and productivity improvements through its Invigorate program, which focuses on various operational efficiencies[19] - The Invigorate program aims to achieve 3% annual cost savings and productivity improvements to counter inflationary pressures[95] - The company incurred $27 million in pre-tax charges related to restructuring and integration activities during the first half of 2024[77] - Restructuring and impairment charges for the three months ended June 30, 2024, totaled $8 million, compared to $6 million for the same period in 2023, reflecting an increase of 33.3%[31] - The company reported a restructuring liability of $16 million as of June 30, 2024, up from $12 million at the end of 2023[20] Acquisitions - The company acquired select assets of PathAI Diagnostics for $100 million on June 10, 2024, which included $55 million of tax-deductible goodwill and $39 million of customer-related intangible assets[22] - During June 2023, Quest Diagnostics acquired Haystack Oncology, with a contingent consideration obligation of up to $150 million based on revenue benchmarks and reimbursement coverage from CMS[26] - The company completed the acquisition of select assets from Lenco Diagnostic Laboratories, enhancing its service capabilities[75] Revenue and Cost Analysis - Total operating costs and expenses for the three months ended June 30, 2024 were 85.2% of net revenues, slightly up from 85.1% in the prior year[115] - Cost of services for the six months ended June 30, 2024 increased by $82 million compared to the prior year period, driven by higher supplies expenses and wage increases[124] - SG&A for the three months ended June 30, 2024 was consistent with the prior year period, with recent acquisitions offset by lower benefit costs[109] Tax and Equity - The effective income tax rate for the six months ended June 30, 2024 was 24.2%, compared to 23.5% in the prior year[132] - The effective income tax rate for the three months ended June 30, 2024 was 23.4%, slightly lower than 23.5% for the same period in 2023[143] - Income tax expense for the six months ended June 30, 2024 and 2023 was $140 million for both periods[144] - Equity in earnings of equity method investees decreased by $4 million for the six months ended June 30, 2024, primarily due to net losses associated with strategic investments[133] - Equity in earnings of equity method investees, net of taxes, decreased by $7 million for the three months ended June 30, 2024, primarily due to $9 million of net losses associated with changes in the carrying value of strategic investments[145] Miscellaneous - Days sales outstanding was 50 days as of June 30, 2024, consistent with the previous period[156] - The company has not repurchased any shares of its common stock during the six months ended June 30, 2024, consistent with the same period in 2023[56] - The company has $1.0 billion remaining under its share repurchase authorization, which has no set expiration date[161] - The proportionate share of income before income taxes from equity method investees is less than 5% of the company's consolidated income before income taxes[162] - The company believes its cash and cash equivalents, along with cash from operations and borrowing capacity, will provide sufficient financial flexibility for future obligations and growth opportunities[166]

Quest Diagnostics' (DGX) subsidiary, Haystack Oncology, and Lisata Therapeutics, Inc. (LSTA) recently announced a research collaboration for using the Haystack MRD (minimal residual disease) technology. Under the partnership, Lisata will deploy the highly sensitive technology to detect the circulating tumor DNA (ctDNA) in a clinical study evaluating certepetide plus chemotherapy as an investigational treatment for metastatic pancreatic cancer. DGX completed the validation of the Haystack MRD test in March 2 ...