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].

Core Viewpoint - West Pharmaceutical Services (WST) reported quarterly earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.22 per share, but down from $1.56 per share a year ago, indicating an earnings surprise of 18.85% [1] Financial Performance - The company posted revenues of $698 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.68%, and showing a slight increase from $695.4 million year-over-year [2] - Over the last four quarters, West Pharmaceutical has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] Stock Performance - West Pharmaceutical shares have declined approximately 33.4% since the beginning of the year, in contrast to the S&P 500's decline of 8.6% [3] - The current Zacks Rank for the stock is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.46 on revenues of $708.37 million, while the estimate for the current fiscal year is $6.16 on revenues of $2.89 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Medical - Dental Supplies industry, to which West Pharmaceutical belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges for stock performance [8]