Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates on Zacks Rank and Industry Rank, access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] - The Growth Score assesses a company's financial health and future outlook through projected and historical earnings, sales, and cash flow [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to facilitate portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [7][8] - There are over 800 stocks rated 1 or 2, making it essential for investors to select stocks with high Style Scores to maximize potential success [9] Stock Analysis: Quest Diagnostics (DGX) - Quest Diagnostics Inc. provides diagnostic information services to a wide range of customers, including physicians and hospitals, and is a key provider of reference testing for about half of U.S. hospitals [11] - DGX holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of B, and is projected to have a year-over-year earnings growth of 9.6% for the current fiscal year [12] - The Zacks Consensus Estimate for DGX has increased by $0.05 to $9.79 per share, with eight analysts revising their earnings estimates upwards in the last 60 days [12] - With a solid Zacks Rank and strong Growth and VGM Style Scores, DGX is recommended for investors' consideration [13]

Core Insights - The Zacks Medical - Outpatient and Home Healthcare industry is experiencing a significant shift towards digital healthcare, driven by rising demand for telemedicine and AI-powered services, particularly due to an aging global population and increasing healthcare costs [1][4][10] Industry Overview - The industry includes companies providing outpatient care using advanced medical technologies for diagnosis, treatment, and rehabilitation, with a focus on innovation and value-based care models [3] - The global home healthcare market was valued at $416.4 billion in 2024 and is projected to reach $747.70 billion by 2030, growing at a CAGR of approximately 10.2% [1] Major Trends - Aging Population: The growing elderly population is a primary driver for home healthcare services, as older individuals prefer receiving care in familiar home settings [4] - Cost Effectiveness: Outpatient clinics offer cost-effective care, reducing the financial burden on patients and healthcare systems [5] - AI's Role: AI enhances patient care through remote monitoring and data analysis, facilitating timely interventions and improving care management [7] - Technological Advancements: Virtual assistants and chatbots are increasingly used to assist patients in managing their care and appointments [8] Staffing Challenges - The U.S. healthcare industry faces severe staffing shortages, particularly among home health aides, exacerbated by high burnout rates and international migration of health workers [11] Market Performance - The industry has underperformed compared to the S&P 500, losing 0.5% over the past year, while the S&P 500 rose by 18.2% [14] - The industry's current valuation is at a forward P/E of 19.6X, compared to the S&P 500's 23.4X [18] Company Highlights - **Quest Diagnostics**: Anticipates 2025 revenue growth of 9.9% and earnings growth of 9.1%, with a current ROE of 15.2% [21][22][25] - **DaVita**: Expected revenue growth of 5% and earnings growth of 12.9% for 2025, with an impressive ROE of 369.4% [26][27][30] - **Addus HomeCare**: Forecasts a 21.5% increase in revenues and a 16.5% rise in earnings for 2025, with a ROE of 9.4% [31][32][34] - **The Pennant Group**: Projects a 26.5% growth in revenues and a 21.3% increase in earnings for 2025, with a ROE of 9.9% [35][36][37]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with high potential for market outperformance [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] - Each stock receives a rating from A to F based on its characteristics, with A indicating the highest potential for outperformance [2] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - Evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - Targets stocks with favorable price trends, utilizing metrics like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines Value, Growth, and Momentum Scores to provide a comprehensive assessment of stocks [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, averaging a +23.75% annual return since 1988 [7] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings outlooks [10] Company Spotlight: Quest Diagnostics (DGX) - Quest Diagnostics provides diagnostic information services to various customers, including hospitals and physicians [11] - Currently rated 3 (Hold) with a VGM Score of A, DGX has a Momentum Style Score of B and has seen a 6.5% increase in shares over the past month [12] - Recent upward revisions in earnings estimates indicate positive momentum, with the Zacks Consensus Estimate for fiscal 2025 rising to $9.74 per share [12][13]

Company Overview - Quest Diagnostics Inc. is headquartered in Secaucus, New Jersey, providing diagnostic information services to a wide range of customers including physicians, hospitals, patients, and consumers [11] - The company serves Independent Delivery Networks (IDN) across the United States through its Professional Lab Services (PLS), which help improve quality, reduce healthcare costs, and focus on core competencies [11] Zacks Rank and Style Scores - Quest Diagnostics has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [12] - The company is particularly appealing to growth investors, with a Growth Style Score of B, forecasting a year-over-year earnings growth of 9% for the current fiscal year [12] - Six analysts have revised their earnings estimates higher in the last 60 days for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.03 to $9.73 per share [12] Investment Potential - Quest Diagnostics has an average earnings surprise of +2.1%, which may indicate a positive outlook for investors [12] - With a strong Zacks Rank and top-tier Growth and VGM Style Scores, Quest Diagnostics is recommended to be on investors' short lists [13]

Company Overview - Quest Diagnostics Inc. is headquartered in Secaucus, New Jersey, providing diagnostic information services to a wide range of customers, including physicians, hospitals, and patients [11] - The company serves Independent Delivery Networks (IDN) across the United States through its Professional Lab Services (PLS), focusing on improving quality and reducing healthcare costs [11] Zacks Rank and Style Scores - Quest Diagnostics has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating a solid position in the market [12] - The Value Style Score for Quest Diagnostics is B, supported by a forward P/E ratio of 17.35, making it attractive for value investors [12] - The Zacks Consensus Estimate for fiscal 2025 earnings has increased to $9.70 per share, with one analyst revising their estimate upwards in the last 60 days [12] Investment Potential - With a strong Zacks Rank and favorable Value and VGM Style Scores, Quest Diagnostics is recommended for investors' consideration [13]