Quest Diagnostics (DGX) Upgraded to Buy: Here's Why

Core Viewpoint - Quest Diagnostics (DGX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, making the Zacks rating system valuable for investors [4][6]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that impact stock prices [4]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade suggest an improvement in Quest Diagnostics' underlying business, which could lead to increased stock prices [5]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Quest Diagnostics is expected to earn $9.79 per share, with a 0.5% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. Positioning of Quest Diagnostics - The upgrade to Zacks Rank 2 places Quest Diagnostics in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].