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 ...

Table of Contents Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and 2023 3 Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2024 and 2023 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 4. Controls and Procedures Page Item 1. Financial Statements (unaudited) Table of Contents 2 3 The accompanying notes are an integral part of these statements. Table of Contents 4 Cash ...

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 ...

Financial Data and Key Metrics - Consolidated revenues for Q2 2024 were $2.4 billion, up 2.5% YoY, with base business revenues growing 3.8% [38] - Organic base business revenues grew by 3.1% [38] - Total volume, measured by requisitions, increased 1.1% YoY, with acquisitions contributing 40 basis points [39] - Base testing volumes grew 1.7% YoY [39] - Reported operating income was $355 million (14.8% of revenues), compared to $348 million (14.9% of revenues) last year [42] - Adjusted operating income was $398 million (16.6% of revenues), compared to $389 million (16.7% of revenues) last year [42] - Reported EPS was $2.03, compared to $2.05 a year ago, while adjusted EPS was $2.35, versus $2.30 the prior year [46] - Cash from operations was $514 million year-to-date through Q2, compared to $538 million in the prior year [46] Business Line Data and Key Metrics - Physician lab services delivered high single-digit base business revenue growth, driven by healthcare utilization and market growth [23] - Advanced Diagnostics saw double-digit revenue growth in brain health, women's health, and cardiometabolic health [26] - Hospital lab services grew base business revenues by nearly 4%, with reference testing remaining strong [30] - Consumer-initiated testing through questhealth.com grew total revenues nearly 40%, with base business revenues up more than 50% YoY [31] - Medicare Advantage plans showed strong volume and revenue growth, with Quest having access to approximately 90% of covered lives in the U.S. [29] Market Data and Key Metrics - The Canadian market, particularly in British Columbia and Ontario, is a strategic focus, with LifeLabs acquisition expected to close by year-end [10][11] - The U.S. market saw growth in physician and hospital channels, which comprise approximately 90% of total revenues [41] - The company expanded its presence in Minneapolis, Minnesota, Wisconsin, and Ohio through acquisitions [15][16] Company Strategy and Industry Competition - The company's strategy focuses on advanced diagnostics, particularly in brain health, molecular genomics, and oncology [19] - Acquisitions are a key growth driver, with a focus on accretive outreach purchases and independent labs [27] - The company is leveraging automation and AI to improve operational quality, service, efficiency, and workforce experience [27][44] - The company is expanding its digital pathology capabilities through the acquisition of PathAI Diagnostics [17] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong healthcare utilization and favorable test mix as drivers of growth [12][13] - The company expects to complete several acquisitions in Q3 2024, which will contribute to revenue growth [15][16] - Management remains optimistic about the pricing and reimbursement environment, which has stabilized and is improving [75] - The company updated its 2024 guidance, with revenues expected to be between $9.5 billion and $9.58 billion, and adjusted EPS between $8.80 and $9.00 [55] Other Important Information - The company experienced a global IT outage, which impacted Q3 earnings by an estimated $0.06 to $0.08 [60][61] - The company is not including the LifeLabs acquisition in its 2024 guidance but expects it to generate approximately $710 million in annual revenues post-closing [56] Q&A Session Summary Question: Volume trends in employer-based business - The employer-based business, including drug testing and population health, showed meaningful declines, impacting overall volume growth [51][52] Question: Canadian market and LifeLabs acquisition - The Canadian market is attractive due to faster population growth and aging, with LifeLabs centered in British Columbia and Ontario, which account for over 50% of Canada's population [68][93] Question: Utilization trends and guidance - Utilization remains strong, with base revenue growth expected to be around 5% for the full year, and 5.3% in the second half [84][108] Question: Digital pathology and PathAI acquisition - Digital pathology is expected to improve quality and efficiency, with potential cost savings from collapsing the network of sites [113][138] Question: Value-based care contracts - Value-based care contracts are lumpy and difficult to model, with payments varying based on contract terms [144][145] Question: Regulatory environment (PAMA and SALSA) - The company expects a one-year delay in PAMA and is pushing for SALSA, though it acknowledges challenges in an election year [120][147] Question: Haystack Oncology and future outlook - Haystack Oncology is expected to be dilutive in 2024 but less so in 2025, with potential for accretion by 2026 [124][149] Question: Wage costs and turnover - Wage increases are expected to remain in the 3% to 4% range, with turnover improving from over 20% last year to mid-18% in Q2 2024 [158][183] Question: Debt and LifeLabs acquisition financing - The LifeLabs acquisition is expected to be funded by a combination of debt and cash, with 75% of the purchase price funded by debt [186] Question: Market share and preferred networks - The company believes it is gaining market share, particularly in physician and hospital channels, with strong growth in preferred network arrangements [168][188]