Quest Diagnostics stock hits 52-week high at $152.88 By Investing.com

Quest Diagnostics Incorporated (NYSE:), a leader in diagnostic testing, information, and services, has reached a new 52-week high, with its stock price soaring to $152.88. This milestone reflects a significant uptrend in the company’s market performance, marking a robust 1-year change with an impressive 15.43% increase. Investors and analysts are closely monitoring Quest Diagnostics as it continues to outperform expectations, attributing the rise to strategic business moves, strong earnings reports, and a solid position within the healthcare sector. The company’s ability to adapt and innovate in the evolving landscape of medical diagnostics has been a key driver of its stock’s upward trajectory.

In other recent news, Quest Diagnostics is set to acquire select assets of the outreach laboratory services business from University Hospitals, a leading health system based in Ohio. This acquisition is part of Quest’s strategy to expand its presence and enhance patient access across Ohio. The deal is expected to finalize in the fourth quarter of 2024.

In financial news, Quest Diagnostics reported a 2.5% increase in total revenue for the second quarter of 2024, reaching $2.99 billion. This growth is largely attributed to strategic acquisitions like LifeLabs, select lab assets of Allina Health, outreach lab assets of OhioHealth, and PathAI Diagnostics. The company has also updated its full-year 2024 financial guidance, projecting revenues to be between $9.5 billion and $9.58 billion.

Mizuho maintained an Outperform rating on Quest Diagnostics, raising the price target to $160 from $155 following the company’s robust second quarter results. Analysts at Mizuho highlighted the company’s successful positioning in the fastest growing clinical areas and noted that operating margins for the quarter exceeded expectations.

In partnership news, Quest Diagnostics announced a global collaboration with BD (Becton, Dickinson and Company) to develop flow cytometry-based companion diagnostics (CDx). This partnership aims to enhance treatment selection for cancer patients and those with other diseases by combining BD’s expertise in flow cytometry with Quest Diagnostics’ experience in biomarker development and assay validation.

These recent developments underscore Quest Diagnostics’ commitment to growth and innovation in the healthcare diagnostics market.

InvestingPro Insights

Quest Diagnostics Incorporated (DGX) has demonstrated a strong commitment to shareholder returns, as evidenced by its aggressive share buyback strategy and a consistent track record of dividend increases. Notably, the company has raised its dividend for 13 consecutive years and has maintained dividend payments for 21 consecutive years, showcasing its financial stability and dedication to delivering value to its investors. The resilience of Quest Diagnostics is further underscored by its low price volatility, appealing to shareholders who favor steady performance.

From a valuation perspective, Quest Diagnostics is trading at a P/E ratio of 20.34, which is considered high relative to near-term earnings growth. Yet, the company’s profitability over the last twelve months and analysts’ predictions of continued profitability this year suggest a solid financial foundation. Additionally, the stock is trading near its 52-week high, with a price that’s 99.82% of its peak, reflecting the market’s confidence in the firm’s prospects.

InvestingPro users can explore more in-depth analysis and additional InvestingPro Tips for Quest Diagnostics to gain further insights into the company’s performance and potential investment opportunities. There are 9 more tips available, including earnings revisions by analysts and fair value estimations, which can be found at: https://www.investing.com/pro/DGX.

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