Quest Diagnostics Incorporated research snapshot
DGX AI stock analysis currently reads Quest Diagnostics as a high-scale diagnostic information services business with durable physician, hospital, health plan, consumer, and enterprise demand. At the July 8, 2026 data cutoff, DGX traded near $212.38 with a verified market capitalization near $23.51 billion. The business has strong 2026 operating momentum after first quarter revenue rose 9.2%, but the stock already reflects better guidance, continued acquisition integration, automation benefits, and resilient reimbursement. This DGX AI stock analysis uses scenario ranges and source-backed checks, not a certain price prediction, and is for informational use only.
Current price
$212.38
Market cap
$23.51 billion
AI score
70 / 100
Rating
Scaled diagnostics compounder with strong 2026 momentum, reimbursement risk, and a full but still explainable valuation
Trend status
Constructive long-term trend above the 200-day moving average, with near-term price below some short moving averages
Data cutoff (updated weekly)
July 8, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Quest Diagnostics runs one of the largest U.S. diagnostic lab networks, serving physicians, hospitals, health plans, consumers, employers, and life sciences partners with recurring medical testing demand. | High |
| Moat | The moat comes from national scale, logistics density, payer contracts, physician relationships, broad test menus, data assets, automation, and enterprise health-system collaborations. | Medium-high |
| Management | Chairman, CEO, and President Jim Davis has emphasized Advanced Diagnostics, consumer testing, Co-Lab Solutions, acquisitions, automation, and Project Nova, while maintaining dividends and share repurchase capacity. | High |
| Financial trend | FY2025 revenue rose 11.8% to $11.035 billion and net income attributable to Quest rose to $992 million. Q1 2026 revenue rose 9.2% to $2.895 billion with 9.0% organic revenue growth. | High |
| Valuation | At $212.38, verified math shows about 23.5x TTM EPS, 17.3x free cash flow per share, 3.2x book value, 2.1x sales, and a 1.6% dividend yield. | Medium-high |
| Technical trend | DGX trades above the 200-day moving average but below some short moving average snapshots, so the longer trend is constructive while the near-term setup needs confirmation. | Medium |
| Risk level | Risk is moderate. Demand is defensive, but reimbursement, wage inflation, billing complexity, regulation, acquisition integration, debt, and payer mix can pressure earnings. | Medium-high |
| AI confidence | Descriptive confidence is high because filings and market data are rich. Forecast confidence is lower because margin and multiple assumptions drive much of the price range. | High data confidence |
| Investment certainty | DGX looks like a quality execution watchlist name rather than a high-certainty bargain at the current price. | Medium |
DGX AI stock forecast
The DGX AI stock forecast is scenario math, not a guaranteed target. Using the July 8, 2026 research cutoff, a $212.38 stock price, the $10.73 midpoint of updated 2026 adjusted EPS guidance, and a three-year model, the tested outcomes span a bearish area near $177, a base area near $248, and a bullish area near $311 before dividends.
$295 to $315
More likely if organic requisition volume remains strong, Advanced Diagnostics and consumer testing keep scaling, automation lifts margins, acquisitions integrate cleanly, and the market values DGX near 23x higher adjusted EPS.
$240 to $255
More likely if adjusted EPS compounds near 5% from the 2026 guidance midpoint, free cash flow conversion remains healthy, reimbursement pressure stays manageable, and DGX trades near 20x forward earnings.
$170 to $185
More likely if reimbursement cuts, labor costs, lower revenue per requisition, integration costs, billing issues, or regulatory costs hold EPS growth near 1% and the market compresses DGX toward a mid-teens multiple.
DGX AI technical analysis
DGX AI technical analysis is constructive but not extended as of the July 8, 2026 data cutoff. The stock was near $212.38 after a July 7 close, below short moving average snapshots around $214 to $213, but still above the 200-day moving average near $202. Momentum was mixed, with Investing.com showing a daily Strong Buy aggregate while the 14-day RSI was near 43.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $212.38 | Stock Titan showed DGX last traded at $212.38 on July 7, 2026, while StockAnalysis showed a market cap near $23.51 billion. |
| Near support | $211 to $213 | This is the current price and 50-day moving average area. A hold here keeps the short-term setup intact. |
| Deeper support | $202 to $205 | The 200-day moving average near $202 and the post-Q1 reaction area near $205 are deeper trend references. |
| Resistance | $217 to $219 | Recent MarketWatch and Google Finance snapshots placed the 52-week high near $217 to $219, making this the first overhead test. |
| Moving averages | 5-day near $214, 50-day near $213, 200-day near $202 | Short averages show near-term hesitation while price remains above the long-term trend reference. |
| Momentum | RSI near 43 | Investing.com cited a 14-day RSI near 42.9, which is not an overbought reading despite the strong daily aggregate signal. |
| Volume | Average volume near 0.85 million shares | Google Finance and GuruFocus snapshots placed average volume around the mid-800,000 share range, useful for judging breakouts. |
| Volatility | $164.65 to $219.20 52-week range | The range shows meaningful rerating after better demand and guidance, but also leaves room for multiple compression if execution weakens. |
| Invalidation | Close below $202, then $195 | A decisive close below the 200-day moving average would weaken the trend-following case. A break below the high-$190s would imply a failed post-Q1 setup. |
DGX AI trading strategy
The DGX AI trading strategy below is a rules-based planning framework for risk control, not personal investment advice. It combines price confirmation with evidence that Quest can deliver FY2026 revenue, adjusted EPS, cash flow, and integration targets.
Watch for DGX to hold the $211 to $213 support area and break above the $217 to $219 resistance zone on volume above the roughly 0.85 million share reference. Confirmation improves if second quarter results support the updated 2026 guidance range.
Treat a failed breakout back below current support as a warning. A close below the 200-day moving average near $202 invalidates the cleaner trend setup.
If DGX pulls back toward the $202 to $205 area without a guidance cut or new reimbursement shock, compare the lower price with adjusted EPS guidance, operating cash flow, acquisition integration progress, and Project Nova cost timing.
Do not average down without a defined exit. A payer, billing, regulatory, or margin reset matters more than the apparent discount to the 52-week high.
Track Q2 2026 results, net revenue guidance of $11.78 billion to $11.90 billion, adjusted EPS guidance of $10.63 to $10.83, requisition volume, revenue per requisition, Advanced Diagnostics growth, consumer channel traction, cash flow, debt, and acquisition integration.
Reduce confidence if EPS growth depends mainly on one-time costs, tax rate changes, or multiple expansion while organic growth and free cash flow conversion weaken.
Investment research summary
Quest gets paid to turn lab specimens, clinical data, and diagnostic workflows into medical insights for physicians, hospitals, health plans, consumers, employers, and life sciences partners. Customers pay for accuracy, access, speed, compliance, and network scale.
The moat is built from national lab density, logistics, payer access, physician and health-system relationships, broad test menus, data, automation, and workflow integration. It can narrow if reimbursement falls faster than productivity gains or service quality slips.
The thesis fails if volume growth slows, revenue per requisition keeps falling, reimbursement resets lower, wage inflation persists, acquisitions dilute returns, billing complexity creates legal costs, or debt limits capital allocation.
Jim Davis and his team have focused on clinical innovation, consumer testing, health-system collaborations, acquisitions, automation, and order-to-cash transformation. The key test is whether these initiatives convert into durable organic growth and cash flow after integration costs.
Quest sits inside long-term demand for diagnostics, aging demographics, chronic disease monitoring, oncology, cardiometabolic testing, consumer health, and healthcare data. The industry is attractive but regulated, price-sensitive, and exposed to payer behavior.
At roughly 23.5x TTM EPS and 19.8x the 2026 adjusted EPS midpoint, DGX is priced as a quality defensive growth business, not a distressed healthcare services stock. Margin of safety depends on execution and reimbursement stability.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| DGX price | $212.38 last trade on July 7, 2026 | Stock Titan overview | July 8, 2026 |
| Market capitalization | $23.51 billion, verified as $212.38 x 110.70 million shares with 0.00% variance | StockAnalysis statistics and financial_rigor.py | July 8, 2026 |
| Shares outstanding | 110.70 million shares | StockAnalysis statistics | July 8, 2026 |
| FY2025 revenue | $11.035 billion, cross-validated against Quest, SEC 10-K, and StockAnalysis with 0.00% variance | Quest FY2025 results release | July 8, 2026 |
| FY2025 net income attributable to Quest | $992 million, cross-validated against Quest FY2025 release and SEC 10-K with 0.00% variance | Quest FY2025 results release | July 8, 2026 |
| FY2025 operating cash flow and free cash flow | $1.886 billion operating cash flow and about $1.359 billion free cash flow after $527 million capital expenditures | Quest FY2025 results release | July 8, 2026 |
| Q1 2026 revenue and adjusted EPS | $2.895 billion revenue, 9.2% growth, and $2.50 adjusted diluted EPS | Quest Q1 2026 results release | July 8, 2026 |
| Updated FY2026 guidance | $11.78 billion to $11.90 billion revenue and $10.63 to $10.83 adjusted diluted EPS | Quest Q1 2026 results release | July 8, 2026 |
| Cash and debt | $393 million cash and equivalents, $503 million current debt, and $5.155 billion long-term debt at March 31, 2026 | Quest Q1 2026 results release | July 8, 2026 |
| Valuation check | 23.47x TTM PE, 3.19x price to book, 17.29x price to FCF, 2.08x price to sales, and 1.62% dividend yield | financial_rigor.py valuation verification | July 8, 2026 |
| Technical indicators | 50-day moving average near $212.78, 200-day moving average near $201.99, and 14-day RSI near 42.9 | Investing.com technical summary | July 8, 2026 |
This DGX AI stock analysis page is an informational research tool only. It is not investment advice, a recommendation to buy or sell securities, or a promise of future returns. Forecast scenarios are based on available public data as of July 8, 2026 and may be wrong if fundamentals, valuation multiples, market conditions, or company disclosures change.
