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 August 2, 2026 data cutoff, DGX closed near $233.01 on July 31, 2026 with a verified market capitalization near $25.72 billion. Second quarter 2026 revenue rose 10.2% to $3.04 billion with 10.0% organic growth, adjusted diluted EPS rose 19.1% to $3.12, and management raised full year 2026 guidance to $11.95 billion to $12.05 billion in revenue and $11.05 to $11.25 in adjusted diluted EPS. The stock now trades about 20.9x the new adjusted EPS midpoint, close to the 52-week high, so the easy part of the rerating is behind it and the chart is overbought. 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
$233.01
Market cap
$25.72 billion
AI score
73 / 100
Rating
Scaled diagnostics compounder with a strong Q2 2026 beat, a second guidance raise, and an overbought chart that now prices in the improved outlook
Trend status
Strong uptrend with price above every major moving average and near the 52-week high, but short-term momentum is overbought
Data cutoff (updated monthly)
August 4, 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. Q2 delivered a revenue and EPS beat and a second 2026 guidance raise. | High |
| Financial trend | Q2 2026 revenue rose 10.2% to $3.04 billion with 10.0% organic growth and 13.0% organic requisition volume growth. Adjusted diluted EPS rose 19.1% to $3.12, and H1 adjusted EPS rose 16.4% to $5.62. | High |
| Valuation | At $233.01, verified math shows about 24.7x TTM EPS, 20.9x the updated 2026 adjusted EPS midpoint, 19.1x free cash flow per share, 3.4x book value, 2.2x sales, and a 1.48% dividend yield. | Medium-high |
| Technical trend | DGX trades above the 50-day, 100-day, and 200-day moving averages and is about $7 below the 52-week high, but the 14-day RSI near 71.5 and Stochastic readings near 85 are overbought. | Medium |
| Risk level | Risk is moderate. Demand is defensive and volume is accelerating, but revenue per requisition is falling, and 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 is a quality name with clear momentum, but after a 38% 52-week gain the current price already reflects raised guidance, so certainty about the next leg is lower than the confidence in the business itself. | Medium |
DGX AI stock forecast
The DGX AI stock forecast is scenario math, not a guaranteed target. Using the August 2, 2026 research cutoff, the $233.01 July 31 close, the $11.15 midpoint of updated 2026 adjusted EPS guidance, and a three-year model, the tested outcomes span a bearish area near $189, a base area near $273, and a bullish area near $326 before dividends.
$315 to $340
More likely if organic requisition volume keeps growing at double digits, Advanced Diagnostics and consumer testing keep scaling, automation lifts margins, the next guidance raise sticks, and the market values DGX near 22x higher adjusted EPS.
$260 to $285
More likely if adjusted EPS compounds near 7% from the 2026 guidance midpoint, free cash flow conversion stays healthy, reimbursement pressure stays manageable, and DGX trades near 20x forward earnings.
$180 to $200
More likely if reimbursement cuts, a steeper fall in revenue per requisition, labor costs, integration costs, billing issues, or regulatory costs hold EPS growth near 2% and the market compresses DGX toward a mid-teens multiple.
DGX AI technical analysis
DGX AI technical analysis is strongly bullish but overbought as of the August 2, 2026 data cutoff. The stock closed near $233.01 on July 31, well above the 50-day moving average near $206.92 and the 200-day near $194.04, and roughly $7 below the 52-week high of $240.13. The 14-day RSI near 71.5 and Stochastic readings near 85 are overbought, while a 14-day ADX near 34 shows a strengthening trend, so the setup favors continuation but carries pullback risk after a large move.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $233.01 | StockAnalysis and StockTitan both showed a $233.01 close on July 31, 2026, with a market cap verified near $25.72 billion. |
| Near support | $225 to $230 | This reaction area sits below the current quote and above the 20-day moving average, and a hold here keeps the near-term setup intact. |
| 20-day support | $216.5 to $217 | The 20-day moving average near $216.76 from Barchart is the first real trend support after the post-Q2 move. |
| Key trend support | $206 to $207 | The 50-day moving average near $206.92 marks the primary intermediate trend reference from StockAnalysis and Barchart. |
| Long-term support | $194 to $195 | The 200-day moving average near $194.04 is the long-term trend reference and a major pullback level. |
| Resistance | $240.13 | The 52-week high of $240.13 from the StockAnalysis overview is the immediate overhead test and the breakout level. |
| Moving averages | 5-day near $234, 20-day near $216.76, 50-day near $206.92, 100-day near $200.94, 200-day near $194.04 | Price is above every major moving average, which is a textbook strong uptrend structure from Barchart data. |
| Momentum | RSI near 71.5, Stochastic %K near 84.8 | Barchart showed a 14-day RSI near 71.48 and 14-day Stochastic %K near 84.79, both overbought near the 52-week high. |
| Trend strength | ADX near 33.8, +DI near 38.3, -DI near 14.5 | Barchart showed a 14-day ADX near 33.83 with positive directional index well above negative, confirming trend strength. |
| Volume | Average volume near 1.12 million shares | StockAnalysis showed about 1.12 million and Barchart about 1.13 million shares on the 20-day average. |
| Volatility | $166.76 to $240.13 52-week range | The 14-day average true range near $6.59 (2.83%) from Barchart shows elevated volatility after the rally to new highs. |
| Invalidation | Close below $216.76, then $206.92 | A decisive close below the 20-day moving average would end the shortest-term trend. A break below the 50-day moving average would signal a deeper pullback in an otherwise strong uptrend. |
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 the updated FY2026 revenue, adjusted EPS, cash flow, and integration targets.
Watch for DGX to hold the $225 to $230 support area and break above the $240.13 52-week high on volume above the roughly 1.12 million share reference. Confirmation improves if third quarter results support the updated 2026 guidance range.
Treat a failed breakout back below current support as a warning. A close below the 20-day moving average near $216.76 invalidates the shorter trend setup, and a close below the 50-day near $206.92 signals a deeper correction.
If DGX pulls back toward the $216 to $217 or $206 to $207 moving average areas without a guidance cut or new reimbursement shock, compare the lower price with adjusted EPS guidance, operating cash flow, Advanced Diagnostics growth, and acquisition integration progress.
Do not average down without a defined exit. After a 38% 52-week gain, a payer, billing, regulatory, or margin reset matters more than the apparent discount to recent highs.
Track Q3 2026 results, net revenue guidance of $11.95 billion to $12.05 billion, adjusted EPS guidance of $11.05 to $11.25, operating cash flow of roughly $1.80 billion, requisition volume, revenue per requisition, Advanced Diagnostics growth, consumer channel traction, 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 delivered a Q2 beat and a second 2026 guidance raise by focusing on clinical innovation, consumer testing, health-system collaborations, 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 24.7x TTM EPS and 20.9x the updated 2026 adjusted EPS midpoint, DGX is priced as a growing quality healthcare business near its 52-week high. Margin of safety is thinner than it was in the spring and 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 | $233.01 close on July 31, 2026 | StockAnalysis overview and StockTitan | August 2, 2026 |
| Market capitalization | $25.72 billion, verified as $233.01 x 110.37 million shares with 0.01% variance | StockAnalysis statistics and financial_rigor.py | August 2, 2026 |
| Shares outstanding | 110.37 million shares, down 0.88% year over year | StockAnalysis statistics | August 2, 2026 |
| Q2 2026 results | $3,043 million revenue, +10.2% YoY with 10.0% organic growth; $320 million net income attributable; $2.84 reported diluted EPS, +15.0%; $3.12 adjusted diluted EPS, +19.1% | Quest Q2 2026 results release | August 2, 2026 |
| Q2 2026 volume and pricing | Requisition volume +13.1% and organic requisition volume +13.0%, while revenue per requisition fell 2.8% | Quest Q2 2026 results release | August 2, 2026 |
| H1 2026 results | $5,938 million revenue, +9.7% YoY; $572 million net income attributable; $5.08 reported diluted EPS, +15.2%; $5.62 adjusted diluted EPS, +16.4% | Quest Q2 2026 results release | August 2, 2026 |
| Updated FY2026 guidance | $11.95 billion to $12.05 billion revenue, $11.05 to $11.25 adjusted diluted EPS, roughly $1.80 billion operating cash flow, and approximately $550 million capital expenditures | Quest Q2 2026 results release | August 2, 2026 |
| FY2025 results | $11.035 billion revenue, +11.78% YoY; $992 million net income attributable to Quest; $8.75 diluted EPS; $1,886 million operating cash flow | Quest FY2025 results release | August 2, 2026 |
| Cash and debt | $626 million cash and equivalents and $6.40 billion total debt at June 30, 2026, with net cash of negative $5.78 billion | Quest Q2 2026 release and StockAnalysis statistics | August 2, 2026 |
| TTM financials | Trailing twelve-month revenue $11.56 billion, net income $1.06 billion, EPS $9.42, operating cash flow $1.90 billion, and free cash flow $1.35 billion | StockAnalysis statistics | August 2, 2026 |
| Valuation snapshot | Trailing PE 24.74, forward PE 20.34, PS 2.22, PB 3.41, P/FCF 19.06, EV/EBITDA 13.36, and dividend yield 1.48% | StockAnalysis statistics | August 2, 2026 |
| Analyst forecast | Consensus Buy from 17 analysts with an average price target of $245.87, a low of $204, and a high of $265 | StockAnalysis forecast and S&P Global | August 2, 2026 |
| Technical snapshot | RSI 71.48, Stochastic %K 84.79, ADX 33.83, 50-day MA $206.92, 100-day MA $200.94, 200-day MA $194.04, and 20-day average volume about 1.12 million shares | Barchart technical analysis and StockAnalysis statistics | August 2, 2026 |
| Three-scenario valuation | financial_rigor.py output: bullish $326.5, base $273.2, bearish $189.3 using $11.15 EPS, 10% / 7% / 2% growth and 22x / 20x / 16x PE | financial_rigor.py three-scenario calculation | August 2, 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 August 2, 2026 and may be wrong if fundamentals, valuation multiples, market conditions, or company disclosures change.
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