Cracking The Code: Understanding Analyst Reviews For Quest Diagnostics

In the preceding three months, 7 analysts have released ratings for Quest Diagnostics DGX, presenting a wide array of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $149.71, a high estimate of $155.00, and a low estimate of $144.00. Marking an increase of 4.38%, the current average surpasses the previous average price target of $143.43.

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive Quest Diagnostics is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Quest Diagnostics. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Quest Diagnostics compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Quest Diagnostics's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Quest Diagnostics's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Quest Diagnostics analyst ratings.

Unveiling the Story Behind Quest Diagnostics

Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the U.S. The company generates over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of roughly 2,300 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a much smaller diagnostic solutions segment that provides clinical trials testing, risk assessment services, and information technology solutions.

Quest Diagnostics: Delving into Financials

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Quest Diagnostics's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 1.5%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Quest Diagnostics's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.16% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.03%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Quest Diagnostics's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.38% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Quest Diagnostics's debt-to-equity ratio is below the industry average. With a ratio of 0.83, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.