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Quest Diagnostics Incorporated (DGX) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$190.45

Change

-0.96%

Market Cap

$21.30B

Avg Volume

1.0M

Company Overview

Quest Diagnostics Incorporated provides diagnostic testing and services to hospitals, doctors, and patients. They specialize in a wide range of clinical testing, including routine, non-routine, and advanced tests, as well as anatomic pathology. Their offerings also include risk assessment services for the life insurance sector. Quest operates under several brand names, including Quest Diagnostics and AmeriPath, and utilizes a broad service network that includes labs, patient service centers, and mobile phlebotomists.

Quest Diagnostics is a market leader in the diagnostic testing sector, holding a significant share of the U.S. market. Their competitive edge comes from a robust brand reputation, extensive testing capabilities, and a well-established network of service points. Key competitors include LabCorp and MedTech firms that are increasingly focusing on at-home testing solutions. The constant evolution of healthcare technology and potential regulatory changes pose challenges, but Quest’s scale and reputation position it favorably against these threats.

Currently, Quest Diagnostics is in a growth phase. They have been focusing on expanding their testing capabilities, particularly in the areas of genetic testing and infectious diseases. Recently, the company reported strong demand for its COVID-19 testing services, which helped drive revenue growth. This adaptability and strategic investment in advanced diagnostics suggest that Quest is not only responding to current market needs but also proactively positioning itself for future healthcare trends.

Key Financials

Market Cap

$21.30B

Revenue

$10.85B

EBITDA

$2.14B

Gross Margin

33.4%

Profit Margin

8.9%

Revenue Growth

13.2%

Total Cash

$435.00M

Total Debt

$6.38B

Free Cash Flow

$1.00B

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

22.35

Forward P/E

18.28

Beta

0.68

52-Week High

$197.55

52-Week Low

$157.20

EPS

$8.52

50-Day Avg

$181.84

200-Day Avg

$179.27

Price/Book

2.91

Technical Analysis

Quest Diagnostics Incorporated (DGX) has shown a generally upward trend over the past 52 weeks, with a sustainable strength reflected in the 17.6% increase from the previous year. Key support is evident around the $160 level, where the price has repeatedly bounced back, while resistance is noted near $190, the current price level, which has proven difficult to surpass consistently. A notable price pattern includes a series of higher lows and higher highs, indicating a bullish sentiment, but also some consolidation phases where the price has hovered around the $180 mark for extended periods. In recent weeks, the stock has displayed strong upward momentum, breaking through its previous resistance levels and pushing toward its all-time highs. Currently, at $190.45, DGX is near the upper end of its 52-week range, implying a strong market interest but also the potential for short-term volatility if it can’t maintain momentum above this resistance.

Recent News and Developments

Market Update

Here’s a summary of the latest news and developments for Quest Diagnostics Incorporated (DGX) stock in the past week, covering February 1st to February 7th, 2026:

1. Quest Diagnostics Launches New Blood Test for Myeloma Residual Disease

On Monday, February 2, 2026, Quest Diagnostics introduced a novel blood test designed to detect measurable residual disease (MRD) in myeloma patients. This “Quest Flow Cytometry MRD for Myeloma” test offers sensitivity comparable to next-generation sequencing but at a potentially lower cost, and notably uses non-invasive blood specimens instead of bone marrow aspirates. The company anticipates this test will be particularly useful in clinical trials, aligning with the FDA’s January 2026 draft guidance on utilizing MRD as a primary endpoint in multiple myeloma treatment evaluations.

2. Barclays Upgrades Quest Diagnostics Stock Rating

Barclays upgraded Quest Diagnostics (DGX) stock from an “Equalweight” rating to an “Overweight” rating, simultaneously raising its price target from $195.00 to $210.00. The upgrade, announced on February 2, 2026, was driven by Barclays’ confidence in Quest’s ability to sustain organic growth, projected at approximately 4% on average from fiscal year 2024 to fiscal year 2025, a rate significantly higher than its pre-COVID average.

Market Sentiment and Analyst Recommendations

Bull Case

Quest is firing on multiple cylinders right now. Revenue growth of 13.2% crushes the pre-COVID average and suggests the company is winning market share in a defensive healthcare space. The new myeloma MRD blood test is a genuine competitive advantage — it’s cheaper than sequencing, less invasive than bone marrow biopsies, and hits the market exactly when the FDA is signaling it wants MRD data in drug trials. That’s a real revenue driver for the next 2-3 years. Barclays just upgraded the stock and lifted its target to $210, which implies 10% upside from here. The analyst consensus sits at 16 buys with an average target of $199.31, and the stock is only at $190.45. At a 22.35 P/E multiple for a company growing 13% with strong cash generation, you’re not paying a tech premium for a defensive healthcare name. Earnings hit on February 10 — beat expectations and this stock could push through $195 resistance without much resistance.

Bear Case

The leverage is real. Quest carries $6.38B in debt against only $435M in cash. That 14.7x debt-to-cash ratio limits financial flexibility if the economy stumbles or if margins compress. The stock is already near the top of its 52-week range at $190.45, and technical resistance has been sticky around $190 for months. If the company misses on Q4 earnings or guides lower, there’s no cushion before you’re back at $180 support. CEO Davis just dumped $10.6M worth of stock, cutting his stake by 31%. That’s a red flag on insider confidence, regardless of how you spin it. The diagnostic testing market is consolidating and competitive — LabCorp and other players are aggressive on pricing. A 13.2% growth rate is good but not sustainable forever, and at 22x earnings you need that growth to keep executing. One miss and the multiple compresses fast in this sector.

What to Watch

The Q4 earnings call on February 10 at 8:30 AM ET is the immediate catalyst. Watch for organic growth rates and whether management guides the 4% sustainable growth that Barclays cited. If they beat the $2.36 EPS estimate and the $2.75B revenue forecast, the stock should test $195-200. Monitor adoption metrics on the new myeloma test — specifically how many hospital systems and oncology clinics are ordering it in Q1 2026. That’s a long-term margin driver. Track the debt-to-EBITDA ratio in the next earnings report; if it’s rising, that’s a structural concern. Watch the $190 resistance level closely over the next two weeks. A break above $195 with volume opens the door to $210. A failure to hold $185 support on any pullback would suggest the rally is losing steam. Finally, keep tabs on insider buying patterns — if Davis or other executives start buying again, that erases some of the concern from his recent selling.

Analyst Consensus

BUY

Based on 16 analyst opinions

Low Target

$166.00

Mean Target

$199.31

High Target

$215.00

Earnings and Financial Data

Sector

Healthcare

Industry

Diagnostics & Research

Employees

45,000

Earnings & Dividends

Next Earnings

Feb 10, 2026

EPS (Trailing)

$8.52

Dividend Yield

166.0%

Payout Ratio

37.0%

Frequently Asked Questions

Is DGX a good stock to buy?

Yes, analysts recommend DGX as a BUY with a target price of $199.31. Given its current price of $190.45, there’s solid upside potential for investors.

What is DGX’s price target?

The consensus price target for Quest Diagnostics is $199.31. This indicates a potential increase of about 4.5% from the current trading price.

Does DGX pay a dividend?

Yes, Quest Diagnostics offers a dividend yield of 166.0%. This makes DGX an attractive option for income-focused investors.

What is DGX’s P/E ratio?

Quest Diagnostics has a P/E ratio of 22.35 and a forward P/E of 18.28. These figures suggest the stock is fairly valued relative to its earnings growth prospects.

What has been DGX’s price movement over the last year?

DGX’s stock has traded between $157.20 and $197.55 over the last 52 weeks. This range indicates a stable performance with potential for further gains.

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Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.