Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Quest Diagnostics (DGX - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Quest Diagnostics currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for DGX that show why this medical laboratory operator shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For DGX, shares are up 1.56% over the past week while the Zacks Medical - Outpatient and Home Healthcare industry is up 1.41% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 10.5% compares favorably with the industry's 7.08% performance as well.
While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Quest Diagnostics have increased 17.35% over the past quarter, and have gained 32.58% in the last year. On the other hand, the S&P 500 has only moved 4.48% and 17.65%, respectively.
Investors should also pay attention to DGX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. DGX is currently averaging 1,013,849 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with DGX.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost DGX's consensus estimate, increasing from $10.70 to $10.72 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that DGX is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Quest Diagnostics on your short list.
A strong stock as of late has been Quest Diagnostics (DGX - Free Report) . Shares have been marching higher, with the stock up 10.5% over the past month. The stock hit a new 52-week high of $237.78 in the previous session. Quest Diagnostics has gained 31.3% since the start of the year compared to the -0.1% gain for the Zacks Medical sector and the 20.4% return for the Zacks Medical - Outpatient and Home Healthcare industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 23, 2026, Quest Diagnostics reported EPS of $3.12 versus consensus estimate of $2.81 while it beat the consensus revenue estimate by 2.15%.
For the current fiscal year, Quest Diagnostics is expected to post earnings of $10.72 per share on $11.83 in revenues. This represents a 8.83% change in EPS on a 7.25% change in revenues. For the next fiscal year, the company is expected to earn $11.56 per share on $12.39 in revenues. This represents a year-over-year change of 7.84% and 4.69%, respectively.
Valuation MetricsThough Quest Diagnostics has recently hit a 52-week high, what is next for Quest Diagnostics? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Quest Diagnostics has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 21.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.9X. On a trailing cash flow basis, the stock currently trades at 15X versus its peer group's average of 14.8X. Additionally, the stock has a PEG ratio of 2.72. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Quest Diagnostics currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Quest Diagnostics fits the bill. Thus, it seems as though Quest Diagnostics shares could have a bit more room to run in the near term.
How Does DGX Stack Up to the Competition?Shares of DGX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Aveanna Healthcare Holdings Inc. (AVAH - Free Report) . AVAH has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Aveanna Healthcare Holdings Inc. beat our consensus estimate by 38.46%, and for the current fiscal year, AVAH is expected to post earnings of $0.73 per share on revenue of $2.65 billion.
Shares of Aveanna Healthcare Holdings Inc. have gained 7.1% over the past month, and currently trade at a forward P/E of 12.44X and a P/CF of 13.17X.
The Medical - Outpatient and Home Healthcare industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DGX and AVAH, even beyond their own solid fundamental situation.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Quest Diagnostics (DGX - Free Report) Headquartered in Secaucus, New Jersey, Quest Diagnostics Inc. provides diagnostic information services to a broad range of customers within its primary customer channels of physicians, hospitals, patients, and consumers. The company provides services to Independent Delivery Networks (IDN) throughout the United States, through its Professional Lab Services (PLS) offerings, which allow them to build and execute their laboratory strategy, improve quality, reduce healthcare costs, and focus on core competencies. The company is a key provider of reference testing for approximately half of the hospitals in the United States.
DGX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Medical stock. DGX has a Momentum Style Score of B, and shares are up 10.5% over the past four weeks.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.02 to $10.72 per share. DGX also boasts an average earnings surprise of +5.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DGX should be on investors' short list.
SummaryQuest Diagnostics earns a reiterated buy rating after Q2 earnings beat, upgraded FY guidance, and continued market momentum.DGX benefits from strong macro demand for specialized diagnostic testing, peer-leading ROE, and resilient top-line growth (+10.2% YoY).Upward earnings revisions, robust dividend growth, and investment-grade credit ratings support the bull case, though cost pressures and payor risk warrant monitoring.Valuation shows some opportunity, but total return forecast falls short of hurdle rate; sector-specific regulatory risks remain a challenge. krblokhin/iStock Editorial via Getty Images
A Major Diagnostics Brand the Bulls Have Been Chasing Lately While I've been writing a lot on this platform about healthcare REITs, since I'm a REIT enthusiast myself, every so often I also care about what
1.88K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Earnings And Revenue Top EstimatesAdjusted earnings rose to $3.12 per share, beating the analyst consensus estimate of $2.83. Revenue increased 10.2% year over year to $3.043 billion, ahead of the $2.973 billion consensus estimate. Consolidated organic revenue grew 10%.
Adjusted operating income climbed 7.8% to $502 million.
Quest Diagnostics’ second-quarter results showed growth across every major customer channel, with strong demand from physicians, hospitals and consumers driving a 10% increase in organic revenue.
Management also highlighted robust momentum in preventive healthcare, saying its consumer wellness business continued to expand as more people sought health screening and diagnostic tests, reinforcing the company’s long-term growth strategy.
Quest Diagnostics Sees Broad-Based Volume GrowthTotal requisition volume increased 13.1% from a year earlier, while organic volume rose 13%, driven by broad clinical demand from physicians, hospitals and consumers, as well as higher testing volumes from collaborations with Corewell Health and Fresenius Medical Care.
The Corewell Health and Fresenius relationships contributed about 9% of total volume during the quarter. Excluding those partnerships, requisition volume increased 4.1%.
Revenue per requisition declined 2.8% year over year, reflecting the business mix from the two partnerships. Excluding that impact, revenue per requisition increased 2.9%, primarily due to a higher number of tests per requisition. Unit price reimbursement was flat from a year earlier, in line with company expectations.
Quest Diagnostics Raises Full-Year Outlook“With strong growth and sustained demand for our diagnostic insights, we are again raising our full-year guidance,” Chairman, President and CEO Jim Davis said.
Quest Diagnostics raised its fiscal 2026 adjusted earnings guidance to $11.05 to $11.25 per share, up from its previous forecast of $10.63 to $10.83, and above the Wall Street consensus estimate of $10.76.
The company also increased its full-year revenue outlook to $11.95 billion to $12.05 billion, from a prior range of $11.78 billion to $11.90 billion. The updated forecast exceeds the analyst consensus estimate of $11.851 billion.
DGX Price Action: Quest Diagnostics shares were up 6.14% at $222.71 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
Image via Shutterstock
Market News and Data brought to you by Benzinga APIs
Myriad Genetics Sees Stock Surge with Hereditary Cancer TestsQuest Diagnostics NYSE: DGX reported double-digit revenue growth and raised its full-year 2026 outlook after what executives described as strong demand across its physician, hospital and consumer channels, as well as increased volume from major collaborations with Corewell Health and Fresenius Medical Care.
On the company’s second-quarter earnings call, Chairman, Chief Executive Officer and President Jim Davis said Quest grew revenue by more than 10% in the quarter, driven by “broad clinical demand from physicians, hospitals, and consumers” and higher volume tied to the Corewell and Fresenius relationships. Chief Financial Officer Sam Samad said consolidated revenue was $3.04 billion, up 10.2% from the prior year, while consolidated organic revenue rose 10%.
Get Quest Diagnostics alerts:
LifeMD Shares Come Back to Life on GLP-1 Business Growth Total volume, measured by requisitions, increased 13.1% compared with the second quarter of 2025, including 13% organic volume growth. Samad said the Corewell Health and Fresenius Medical Care relationships contributed 9% to volume in the quarter. Excluding those two relationships, volumes rose 4.1%.
Reported operating income was $459 million, or 15.1% of revenue, compared with $438 million, or 15.9% of revenue, a year earlier. Adjusted operating income was $502 million, or 16.5% of revenue, compared with $466 million, or 16.9% of revenue, last year. Samad said the increase in adjusted operating income reflected organic revenue growth, partially offset by wage increases.
Exact Sciences Serves Investors Exactly What They Wished For Reported diluted earnings per share were $2.84, compared with $2.47 a year earlier. Adjusted diluted EPS was $3.12, up from $2.62 in the prior-year period. Samad said the EPS improvement was driven by organic operating performance and the favorable resolution of various tax contingencies, which contributed $0.10 per share in the quarter. Excluding that one-time tax benefit, adjusted EPS grew 15.3%.
Company Raises 2026 Guidance Quest raised its full-year 2026 revenue and earnings outlook, citing first-half performance and ongoing demand. The company now expects:
Revenue of $11.95 billion to $12.05 billion, representing growth of 8.3% to 9.2%. Reported EPS of $9.97 to $10.17. Adjusted EPS of $11.05 to $11.25. Cash from operations of approximately $1.8 billion. Capital expenditures of approximately $550 million. Samad said the guidance excludes any contribution from prospective mergers and acquisitions. He also noted that Project Nova expenses are unchanged for the full year, but the company now expects increased spending in the second half compared with prior expectations. Higher fuel costs in the second half are also included in the outlook.
Despite those pressures, Samad said Quest still expects operating margin to expand versus the prior year. He said the company expects to lap the Corewell and Fresenius impacts in the fourth quarter, reducing their dilutive effect on total operating margins in the second half.
Physician, Hospital and Consumer Channels Drive Growth Davis said the physician channel delivered high single-digit revenue growth during the quarter, supported by demand for clinical innovations, new customer wins and expanded business with existing customers. He cited growth in geographies where Quest has expanded access through health plans and acquisitions, as well as enterprise accounts focused on prevention and wellness.
In hospitals, Davis said revenue grew at a double-digit rate, primarily from co-lab solutions with Corewell Health in Michigan. Reference testing revenue also increased versus both the first quarter and the prior year. During the question-and-answer portion of the call, Davis said the company’s core hospital reference business generated mid-single-digit revenue growth, with slightly higher volume growth. He said same-store sales in co-lab arrangements excluding Corewell also grew at a mid-single-digit rate.
Davis said Quest formed a new co-lab agreement during the quarter with a nonprofit regional health system in California. He added that the company has a “strong pipeline” of potential hospital collaborations, hospital outreach acquisitions and independent lab opportunities.
In consumer health, Davis said questhealth.com continued to generate “robust revenue growth,” with strong demand for existing wellness panels and new services including thyroid testing. He said the broader consumer business, which includes direct and indirect offerings, was previously sized at about $250 million and is currently growing toward the high end of the company’s 20% to 30% expectation for 2027.
Advanced Diagnostics and Automation Highlighted Davis said Quest posted double-digit revenue growth across several advanced diagnostic areas, including cardiometabolic testing such as ApoB and Lp(a), liver fibrosis testing and autoimmune testing through the company’s analyzer solution. In brain health, he said the company continued to drive “robust double-digit growth” across its AD-Detect blood tests, including amyloid beta and p-tau biomarkers.
In oncology, Davis highlighted New York State approval of the Haystack MRD test, which he said allows Quest to extend commercial efforts to all 50 states. He also said Quest became the largest reference lab to extend access to cancer tests such as Haystack MRD through Flatiron Health’s OncoEMR molecular profiling integration platform. A pilot with American Oncology Network has begun, with plans to roll out to Flatiron’s 4,700 clinicians and other providers nationwide later this year.
Davis also discussed operational initiatives, saying Quest remains on track to deliver 3% in annual cost savings and productivity improvements through its Invigorate program. He pointed to expanded use of automation and artificial intelligence, including Hologic’s Genius Digital Diagnostics System for Pap test slide review, front-end specimen processing automation, a web-based collection tool called IntelliDraw and an AI tool intended to reduce the time needed to track and order supplies at patient service centers.
Executives Address Reimbursement, Bad Debt and PAMA Asked about Affordable Care Act exchange-related impacts, Davis said Quest continues to assume a 30-basis-point revenue impact from the expiration of ACA exchange subsidies. He said enrollment declines have not translated into a major business impact, noting that requisition volume in that book is down about 8%, but tests per requisition are up 6%, leaving test volume down about 2% and revenue “relatively flat.”
Executives also said they are not seeing deterioration in bad debt trends. Samad said hospital collections remain in line with expectations and that patient concessions, which he said typically hover around 5% of revenue, have not worsened and were slightly improved versus the prior-year quarter.
On PAMA, Davis outlined three possible outcomes: new CMS rates following the current data collection process, passage of the RESULTS Act, or another delay. He said Quest supports the RESULTS Act, which he described as a better method for collecting market data through a third-party approach. Davis said the bill has more than 115 co-sponsors and broad support from patient and consumer organizations. If the RESULTS Act passes, he said rates would stay flat for 2027 and 2028, with new rates taking effect in 2029 and annual cuts capped at no more than 5%.
Davis closed the call by saying Quest entered the second half with growth momentum and continued demand for lab insights, while remaining focused on its strategy of connecting patients and providers to testing and actionable health information.
About Quest Diagnostics (NYSE:DGX)Quest Diagnostics NYSE: DGX is a leading provider of diagnostic information services that supports clinical decision-making for patients, physicians and healthcare organizations. The company operates a network of clinical laboratories and patient service centers that perform a broad range of laboratory tests and diagnostic assays used in routine care, disease diagnosis, monitoring and screening.
Its services span core clinical laboratory testing, anatomic pathology, molecular and genomic diagnostics, infectious disease testing and toxicology.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Quest Diagnostics Right Now?Before you consider Quest Diagnostics, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Quest Diagnostics wasn't on the list.
While Quest Diagnostics currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.
Quest Diagnostics (DGX - Free Report) came out with quarterly earnings of $3.12 per share, beating the Zacks Consensus Estimate of $2.81 per share. This compares to earnings of $2.62 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +11.03%. A quarter ago, it was expected that this medical laboratory operator would post earnings of $2.37 per share when it actually produced earnings of $2.5, delivering a surprise of +5.49%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Quest Diagnostics, which belongs to the Zacks Medical - Outpatient and Home Healthcare industry, posted revenues of $3.04 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.15%. This compares to year-ago revenues of $2.76 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Quest Diagnostics shares have added about 20.9% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Quest Diagnostics?While Quest Diagnostics has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Quest Diagnostics was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.80 on $3.02 billion in revenues for the coming quarter and $10.72 on $11.84 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Outpatient and Home Healthcare is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Addus HomeCare (ADUS - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 3.
This provider of home-based personal care, nursing and rehabilitative therapy services is expected to post quarterly earnings of $1.69 per share in its upcoming report, which represents a year-over-year change of +13.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Addus HomeCare's revenues are expected to be $375.33 million, up 7.4% from the year-ago quarter.
Key Takeaways Quest Diagnostics posted Q2 adjusted EPS of $3.12 as revenues climbed 10.2% to $3.04 billion. DGX's testing demand drove growth, with requisition volume up 13.1% and organic volume rising 13.0%. DGX raised its 2026 revenue outlook to $11.95-$12.05 billion and adjusted EPS to $11.05-$11.25. Quest Diagnostics Incorporated (DGX - Free Report) reported second-quarter 2026 adjusted earnings of $3.12 per share, up 19.1% year over year. The figure beat the Zacks Consensus Estimate by 11%.
The adjusted results exclude certain one-time items, including amortization expenses, restructuring and integration charges, other expenses, and excess tax benefits related to stock-based compensation. GAAP earnings were $2.84 per share, up 15% from the prior-year figure.
DGX’s Q2 RevenuesRevenues rose 10.2% year over year to $3.04 billion and surpassed the Zacks Consensus Estimate by 2.1%. Growth was driven by higher testing demand, with requisition volume increasing 13.1% and organic requisition volume rising 13.0%.
DGX's Diagnostic Services Revenues ClimbDiagnostic Information Services revenues increased 10.3% year over year to $2.98 billion in the second quarter. The business accounted for nearly all of the company’s consolidated revenues and benefited from growth across physician, hospital and consumer channels.
Revenue per requisition declined 2.8% year over year. The decrease partly offset the benefit of higher volumes, but the scale of requisition growth supported double-digit revenue expansion for the segment.
DGX’s shares have gained nearly 6.2% in pre-market trading following the earnings report.
DGX's Margin Performance The cost of services during the reported quarter was $2.02 billion, up 10.9% year over year. Gross profit was $1.03 billion, up 8.9% from $943 million in the year-ago quarter. The gross margin contracted 40 basis points to 33.7%.
Selling, general and administrative expenses totaled $529 million, increasing 8.8% year over year. The operating margin narrowed 80 basis points to 15.1% in the second quarter.
DGX Strengthens Cash Flow and LiquidityQuest Diagnostics ended the second quarter with $626 million in cash and cash equivalents, up from $393 million at the end of the first quarter. During the first half, the company repurchased 0.5 million shares for $100 million, with $1.3 billion remaining under its authorization.
For the first six months of 2026, cash provided by operating activities increased 1.9% year over year to $875 million. Capital expenditures rose 12.1% to $252 million, reflecting continued investment in the business.
Quest Diagnostics Raises 2026 OutlookThe company now expects 2026 revenues to be between $11.95 billion and $12.05 billion, up from its prior range of $11.78-$11.90 billion. The revised outlook implies growth of 8.3-9.2%. The Zacks Consensus Estimate is pegged at $11.84 billion.
Adjusted diluted earnings are projected to be between $11.05 and $11.25 per share compared with the previous range of $10.63-$10.83. The Zacks Consensus Estimate for the metric is pegged at $10.72.
Our View on DGX StockQuest Diagnostics ended the second quarter of 2026 with earnings and revenues surpassing their respective estimates. The company saw robust growth across questhealth.com, consumer partnerships and Advanced Diagnostics. During the quarter, it also advanced key collaborations, secured New York approval for Haystack MRD and expanded laboratory automation and specimen-collection tools. Driven by the robust second-quarter performance, Quest Diagnostics raised its full-year 2026 guidance.
That said, the contraction of both margins in the quarter is discouraging.
DGX’s Zacks Rank & Other Key PicksQuest Diagnostics currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Phibro Animal Health (PAHC - Free Report) and QuidelOrtho CP (QDEL - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 at present, posted a second-quarter 2026 adjusted EPS of $2.80, exceeding the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion topped the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.5%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a third-quarter fiscal 2026 adjusted EPS of 76 cents, exceeding the Zacks Consensus Estimate by 5.9%. Revenues of $383.5 million outperformed the Zacks Consensus Estimate by 6.3%. PAHC’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.2%.
QuidelOrtho, currently carrying a Zacks Rank #2, reported a first-quarter 2026 adjusted loss of 4 cents per share, which missed the Zacks Consensus Estimate by 110.8%. Revenues of $619.8 million beat the Zacks Consensus Estimate by 0.3%. QDEL beat earnings estimates in three of the trailing four quarters and missed on one occasion.
Second quarter revenues of $3.04 billion, up 10.2% from 2025, with 10.0% organic revenue growth Second quarter reported diluted earnings per share ("EPS") of $2.84, up 15.0% from 2025; and adjusted diluted EPS of $3.12, up 19.1% from 2025 Full year 2026 revenues now expected to be between $11.95 billion and $12.05 billion Full year 2026 reported diluted EPS now expected to be between $9.97 and $10.17; and adjusted diluted EPS expected to be between $11.05 and $11.25 , /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE: DGX), a leading provider of diagnostic information services, today announced financial results for the second quarter ended June 30, 2026.
"Our robust top- and bottom-line growth in the second quarter demonstrates focused execution of our strategy to connect people and providers to innovative testing and actionable insights that illuminate paths for better health," said Jim Davis, Chairman, CEO and President. "Revenues increased by over 10%, almost all from organic revenue growth across our physician, hospital and consumer channels, and adjusted diluted EPS grew over 19%. With strong growth and sustained demand for our diagnostic insights, we are again raising our full year guidance."
Recent Highlights:
Serving Customers and Delivering Innovations
Continued to advance our Co-Lab Solutions implementation and joint venture laboratory with Corewell Health in Michigan and developed new capabilities in kidney care through our collaboration with Fresenius Medical Care in the United States. Generated robust revenue growth through questhealth.com and our consumer, wearable and wellness partners. Grew revenues by double-digits in several areas of Advanced Diagnostics, including Quest AD-Detect® blood tests for Alzheimer's disease and advanced cardiometabolic and endocrine tests, including liver fibrosis testing. Granted New York State approval for our Haystack MRD® test and became the largest reference lab to utilize Flatiron Health's OncoEMR® Molecular Profiling Integration (MPI) platform for select cancer tests, including Haystack MRD, starting with a pilot with American Oncology Network (AON). Driving Operational Excellence
In the lab, extended automation solutions to improve quality and productivity in cervical cancer screening and front-end specimen processing to additional labs. Outside the lab, launched IntelliDraw™ to guide clinical staff of our physician customers through specimen collection, to enhance quality and the service experience.
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
Change
2026
2025
Change
(dollars in millions, except per share data)
Reported:
Net revenues
$ 3,043
$ 2,761
10.2 %
$ 5,938
$ 5,413
9.7 %
Diagnostic Information Services
revenues
$ 2,978
$ 2,699
10.3 %
$ 5,810
$ 5,288
9.9 %
Revenue per requisition
(2.8) %
(2.1) %
Requisition volume
13.1 %
12.0 %
Organic requisition volume
13.0 %
11.9 %
Operating income (a)
$ 459
$ 438
4.6 %
$ 858
$ 784
9.4 %
Operating income as a percentage of net
revenues (a)
15.1 %
15.9 %
(0.8) %
14.4 %
14.5 %
(0.1) %
Net income attributable to Quest
Diagnostics (a)
$ 320
$ 282
13.4 %
$ 572
$ 502
13.9 %
Diluted EPS (a)
$ 2.84
$ 2.47
15.0 %
$ 5.08
$ 4.41
15.2 %
Cash provided by operations
$ 597
$ 544
9.7 %
$ 875
$ 858
1.9 %
Capital expenditures
$ 138
$ 108
27.0 %
$ 252
$ 225
12.1 %
Adjusted (a):
Operating income
$ 502
$ 466
7.8 %
$ 949
$ 872
8.8 %
Operating income as a percentage of net
revenues
16.5 %
16.9 %
(0.4) %
16.0 %
16.1 %
(0.1) %
Net income attributable to Quest
Diagnostics
$ 350
$ 298
17.3 %
$ 631
$ 549
14.9 %
Diluted EPS
$ 3.12
$ 2.62
19.1 %
$ 5.62
$ 4.83
16.4 %
(a)
For further details impacting the year-over-year comparisons related to operating income, operating income as a percentage of net revenues, net income attributable to Quest Diagnostics, and diluted EPS, see note 2 of the financial tables attached below.
Updated Guidance for Full Year 2026
The company updates its full year 2026 guidance as follows:
Updated Guidance
Prior Guidance
Low
High
Low
High
Net revenues
$11.95 billion
$12.05 billion
$11.78 billion
$11.90 billion
Net revenues increase
8.3 %
9.2 %
6.8 %
7.8 %
Reported diluted EPS
$9.97
$10.17
$9.58
$9.78
Adjusted diluted EPS
$11.05
$11.25
$10.63
$10.83
Cash provided by operations
Approximately $1.80 billion
Approximately $1.75 billion
Capital expenditures
Approximately $550 million
Approximately $550 million
Based on the favorable resolution of various tax contingencies in the second quarter, the full year adjusted effective tax rate is expected to be consistent with 2025.
Note on Non-GAAP Financial Measures
As used in this press release the term "reported" refers to measures under accounting principles generally accepted in the United States ("GAAP"). The term "adjusted" refers to non-GAAP operating performance measures that exclude special items such as restructuring and integration charges, amortization expense, excess tax benefits ("ETB") associated with stock-based compensation, gains and losses associated with changes in the carrying value of our strategic investments and other items.
Non-GAAP adjusted measures are presented because management believes those measures are useful adjuncts to GAAP results. Non-GAAP adjusted measures should not be considered as an alternative to the corresponding measures determined under GAAP. Management may use these non-GAAP measures to evaluate our performance period over period and relative to competitors, to analyze the underlying trends in our business, to establish operational budgets and forecasts and for incentive compensation purposes. We believe that these non-GAAP measures are useful to investors and analysts to evaluate our performance period over period and relative to competitors, as well as to analyze the underlying trends in our business and to assess our performance. The additional tables attached below include reconciliations of non-GAAP adjusted measures to GAAP measures.
Conference Call Information
Quest Diagnostics will hold its quarterly conference call to discuss financial results beginning at 8:30 a.m. Eastern Time today. The conference call can be accessed by dialing 888-455-0391 within the U.S. and Canada, or 773-756-0467 internationally, passcode: 7895081; or via live webcast on our website at www.QuestDiagnostics.com/investor. We suggest participants dial in approximately 10 minutes before the call.
A replay of the call may be accessed online at www.QuestDiagnostics.com/investor or, from approximately 10:30 a.m. Eastern Time on July 23, 2026 until midnight Eastern Time on August 6, 2026, by phone at 866-388-5361 for domestic callers or 203-369-0416 for international callers. Anyone listening to the call is encouraged to read our periodic reports, on file with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.
About Quest Diagnostics
Quest Diagnostics works across healthcare to create a healthier world, one life at a time. We help connect people, from clinicians to consumers, with laboratory insights that illuminate a path to better health. With a focus on delivering smarter, simpler testing, our insights reveal new avenues to identify and treat disease, inspire healthy behaviors and improve healthcare management. Quest Diagnostics serves half the physicians and hospitals in the United States and one in three adult Americans each year, and our nearly 60,000 employees work together to deliver diagnostic insights that inspire actions to transform lives. www.QuestDiagnostics.com.
Forward Looking Statements
The statements in this press release which are not historical facts may be forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that they are made and which reflect management's current estimates, projections, expectations or beliefs and which involve risks and uncertainties that could cause actual results and outcomes to be materially different. Risks and uncertainties that may affect the future results of the company include, but are not limited to, uncertain and volatile economic conditions, adverse results from pending or future government investigations, lawsuits or private actions, the competitive environment, the complexity of billing, reimbursement and revenue recognition for clinical laboratory testing, changes in government policies, including related to trade, and regulations, changing relationships with customers, payers, suppliers or strategic partners, acquisitions and other factors discussed in the company's most recently filed Annual Report on Form 10-K and in any of the company's subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the "Business," "Risk Factors," "Cautionary Factors that May Affect Future Results" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of those reports.
This earnings release, including the attached financial tables, is available online in the Newsroom section at www.QuestDiagnostics.com.
ADDITIONAL TABLES FOLLOW
Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2026 and 2025
(in millions, except per share data)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net revenues
$ 3,043
$ 2,761
$ 5,938
$ 5,413
Operating costs and expenses and other operating income:
Cost of services
2,016
1,818
3,969
3,607
Selling, general and administrative
529
486
1,033
962
Amortization of intangible assets
38
39
75
78
Other operating expense (income), net
1
(20)
3
(18)
Total operating costs and expenses, net
2,584
2,323
5,080
4,629
Operating income
459
438
858
784
Other income (expense):
Interest expense, net
(63)
(67)
(126)
(134)
Other income, net
16
13
14
10
Total non-operating expense, net
(47)
(54)
(112)
(124)
Income before income taxes and equity in earnings of equity method
investees
412
384
746
660
Income tax expense
(88)
(97)
(162)
(156)
Equity in earnings of equity method investees, net of taxes
10
9
14
27
Net income
334
296
598
531
Less: Net income attributable to noncontrolling interests
14
14
26
29
Net income attributable to Quest Diagnostics
$ 320
$ 282
$ 572
$ 502
Earnings per share attributable to Quest Diagnostics' common
stockholders:
Basic
$ 2.88
$ 2.51
$ 5.15
$ 4.48
Diluted
$ 2.84
$ 2.47
$ 5.08
$ 4.41
Weighted average common shares outstanding:
Basic
111
112
110
112
Diluted
112
113
112
113
Quest Diagnostics Incorporated and Subsidiaries
Consolidated Balance Sheets
June 30, 2026 and December 31, 2025
(in millions, except per share data)
(unaudited)
June 30,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$ 626
$ 420
Accounts receivable, net
1,666
1,408
Inventories
233
189
Prepaid expenses and other current assets
319
361
Total current assets
2,844
2,378
Property, plant and equipment, net
2,219
2,203
Operating lease right-of-use assets
678
657
Goodwill
9,112
8,945
Intangible assets, net
1,672
1,636
Investments in equity method investees
137
136
Other assets
277
270
Total assets
$ 16,939
$ 16,225
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses
$ 1,598
$ 1,600
Current portion of long-term debt
10
504
Current portion of long-term operating lease liabilities
180
174
Total current liabilities
1,788
2,278
Long-term debt
5,632
5,167
Long-term operating lease liabilities
561
537
Other liabilities
1,059
957
Redeemable noncontrolling interest
80
80
Stockholders' equity:
Quest Diagnostics stockholders' equity:
Common stock, par value $0.01 per share; 600 shares authorized as of both June 30, 2026 and
December 31, 2025; 162 shares issued as of both June 30, 2026 and December 31, 2025
2
2
Additional paid-in capital
2,374
2,381
Retained earnings
10,374
9,994
Accumulated other comprehensive loss
(62)
(27)
Treasury stock, at cost; 52 shares as of both June 30, 2026 and December 31, 2025
(5,172)
(5,180)
Total Quest Diagnostics stockholders' equity
7,516
7,170
Noncontrolling interests
303
36
Total stockholders' equity
7,819
7,206
Total liabilities and stockholders' equity
$ 16,939
$ 16,225
Quest Diagnostics Incorporated and Subsidiaries
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2026 and 2025
(in millions)
(unaudited)
Six Months Ended June 30,
2026
2025
Cash flows from operating activities:
Net income
$ 598
$ 531
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
293
283
Provision for credit losses
3
2
Deferred income tax expense
46
8
Stock-based compensation expense
43
43
Other, net
14
26
Changes in operating assets and liabilities:
Accounts receivable
(259)
(115)
Accounts payable and accrued expenses
130
(11)
Income taxes payable
4
9
Other assets and liabilities, net
3
82
Net cash provided by operating activities
875
858
Cash flows from investing activities:
Business acquisitions, net of cash acquired
(38)
(17)
Capital expenditures
(252)
(225)
Other investing activities, net
4
3
Net cash used in investing activities
(286)
(239)
Cash flows from financing activities:
Proceeds from borrowings
494
400
Repayments of debt
(501)
(1,001)
Purchases of treasury stock
(102)
—
Exercise of stock options
81
42
Employee payroll tax withholdings on stock issued under stock-based compensation plans
(38)
(42)
Dividends paid
(184)
(174)
Distributions to noncontrolling interest partners
(22)
(29)
Other financing activities, net
(109)
(50)
Net cash used in financing activities
(381)
(854)
Effect of exchange rate changes on cash and cash equivalents and restricted cash
(2)
5
Net change in cash and cash equivalents and restricted cash
206
(230)
Cash and cash equivalents and restricted cash, beginning of period
420
549
Cash and cash equivalents and restricted cash, end of period
$ 626
$ 319
Cash paid during the period for:
Interest
$ 129
$ 145
Income taxes
$ 104
$ 110
Notes to Financial Tables
1) The computation of basic and diluted earnings per common share is as follows:
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
(in millions, except per share data)
Amounts attributable to Quest Diagnostics' common stockholders:
Net income attributable to Quest Diagnostics
$ 320
$ 282
$ 572
$ 502
Less: earnings allocated to participating securities
1
1
2
2
Earnings available to Quest Diagnostics' common stockholders - basic and
diluted
$ 319
$ 281
$ 570
$ 500
Weighted average common shares outstanding - basic
111
112
110
112
Effect of dilutive securities:
Stock options and performance share units
1
1
2
1
Weighted average common shares outstanding - diluted
112
113
112
113
Earnings per share attributable to Quest Diagnostics' common
stockholders:
Basic
$ 2.88
$ 2.51
$ 5.15
$ 4.48
Diluted
$ 2.84
$ 2.47
$ 5.08
$ 4.41
2) The following tables reconcile reported GAAP results to non-GAAP adjusted results:
Three Months Ended June 30, 2026
(dollars in millions, except per share data)
Operating
income
Operating
income as a
percentage of
net revenues
Income tax
expense (e)
Equity in
earnings of
equity method
investees, net
of taxes
Net income
attributable to
Quest
Diagnostics
Diluted EPS
As reported
$ 459
15.1 %
$ (88)
$ 10
$ 320
$ 2.84
Restructuring and
integration charges (a)
4
0.2
(1)
—
3
0.04
Other charges (b)
1
—
1
—
2
0.02
Gains and losses on
investments (c)
—
—
—
(1)
(1)
(0.01)
Amortization expense
38
1.2
(10)
—
28
0.25
ETB
—
—
(2)
—
(2)
(0.02)
As adjusted
$ 502
16.5 %
$ (100)
$ 9
$ 350
$ 3.12
Six Months Ended June 30, 2026
(dollars in millions, except per share data)
Operating
income
Operating
income as a
percentage of
net revenues
Income tax
expense (e)
Equity in
earnings of
equity method
investees, net
of taxes
Net income
attributable to
Quest
Diagnostics
Diluted EPS
As reported
$ 858
14.4 %
$ (162)
$ 14
$ 572
$ 5.08
Restructuring and
integration charges (a)
11
0.2
(3)
—
8
0.08
Other charges (b)
5
0.1
—
—
5
0.05
Gains and losses on
investments (c)
—
—
(2)
6
4
0.04
Amortization expense
75
1.3
(19)
—
56
0.50
ETB
—
—
(14)
—
(14)
(0.13)
As adjusted
$ 949
16.0 %
$ (200)
$ 20
$ 631
$ 5.62
Three Months Ended June 30, 2025
(dollars in millions, except per share data)
Operating
income
Operating
income as a
percentage of
net revenues
Income tax
expense (e)
Equity in
earnings of
equity method
investees, net
of taxes
Net income
attributable to
Quest
Diagnostics
Diluted EPS
As reported
$ 438
15.9 %
$ (97)
$ 9
$ 282
$ 2.47
Restructuring and
integration charges (a)
7
0.3
(2)
—
5
0.04
Other charges (b)
28
1.0
(6)
—
22
0.19
Gains and losses on
investments (c)
—
—
1
(1)
(2)
(0.01)
Other gains (d)
(46)
(1.7)
12
—
(34)
(0.30)
Amortization expense
39
1.4
(11)
—
28
0.25
ETB
—
—
(3)
—
(3)
(0.02)
As adjusted
$ 466
16.9 %
$ (106)
$ 8
$ 298
$ 2.62
Six Months Ended June 30, 2025
(dollars in millions, except per share data)
Operating
income
Operating
income as a
percentage of
net revenues
Income tax
expense (e)
Equity in
earnings of
equity method
investees, net
of taxes
Net income
attributable to
Quest
Diagnostics
Diluted EPS
As reported
$ 784
14.5 %
$ (156)
$ 27
$ 502
$ 4.41
Restructuring and
integration charges (a)
26
0.5
(7)
—
19
0.17
Other charges (b)
30
0.6
(6)
—
24
0.21
Gains and losses on
investments (c)
—
—
1
(1)
(2)
(0.01)
Other gains (d)
(46)
(0.9)
14
(8)
(40)
(0.36)
Amortization expense
78
1.4
(20)
—
58
0.51
ETB
—
—
(12)
—
(12)
(0.10)
As adjusted
$ 872
16.1 %
$ (186)
$ 18
$ 549
$ 4.83
(a)
For each of the three and six months ended June 30, 2026 and 2025, the pre-tax impact represents costs primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business. The following table summarizes the pre-tax impact of restructuring and integration charges on our consolidated statements of operations:
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
(dollars in millions)
Cost of services
$ 1
$ 1
$ 2
$ 7
Selling, general and administrative
3
6
9
19
Operating income
$ 4
$ 7
$ 11
$ 26
(b)
The three and six months ended June 30, 2026 and 2025 include losses associated with the change in the fair value of the contingent consideration accrual associated with previous acquisitions, recorded in other operating expense (income), net. Additionally, for both the three and six months ended June 30, 2025, the pre-tax impact primarily represents a $24 million impairment charge on certain long-lived assets related to the exit of a business, recorded in other operating expense (income), net.
(c)
For all periods presented, the pre-tax impact represents gains and losses associated with changes in the carrying value of our strategic investments, principally recorded in equity in earnings of equity method investees, net of taxes, and other income, net.
(d)
The three and six months ended June 30, 2025 include a $46 million pre-tax gain, recorded in other operating expense (income), net, from a payroll tax credit under the Coronavirus Aid, Relief, and Economic Security Act associated with the retention of employees. Additionally, the six months ended June 30, 2025 includes an $8 million gain, recorded in equity in earnings of equity method investees, net of taxes, representing a non-recurring gain related to a lease.
(e)
For restructuring and integration charges, other gains/charges, gains and losses on investments, and amortization expense, income tax impacts, where recorded, were primarily calculated using combined statutory income tax rates of 25.5% for both 2026 and 2025. No income tax impact was recorded on losses associated with the change in the fair value of the contingent consideration accrual associated with previous acquisitions.
3)
For both the three and six months ended June 30, 2026, we repurchased 0.5 million shares of our common stock for $100 million. As of June 30, 2026, $1.3 billion remained available under our share repurchase authorization.
4)
The outlook for adjusted diluted EPS represents management's estimates for the full year 2026 before the impact of special items. Further impacts to earnings related to special items may occur throughout 2026. Additionally, the amount of ETB is dependent upon employee stock option exercises and our stock price, which are difficult to predict. The following table reconciles our 2026 outlook for diluted EPS under GAAP to our outlook for adjusted diluted EPS:
Low
High
Diluted EPS
$ 9.97
$ 10.17
Restructuring and integration charges (a)
0.14
0.14
Amortization expense (b)
0.99
0.99
Other charges (c)
0.10
0.10
Gains and losses on investments (d)
0.04
0.04
ETB
(0.19)
(0.19)
Adjusted diluted EPS
$ 11.05
$ 11.25
(a)
Represents estimated pre-tax charges of $21 million primarily associated with workforce reductions and integration costs incurred in connection with further restructuring and integrating our business. Income tax benefits were primarily calculated using a combined statutory income tax rate of 25.5%.
(b)
Represents estimated pre-tax amortization expenses of $149 million. Income tax benefits were primarily calculated using a combined statutory income tax rate of 25.5%.
(c)
Principally represents estimated pre-tax net losses of $9 million associated with the increase in the fair value of the contingent consideration accrual associated with previous acquisitions. Such estimate is subject to the risks and uncertainties discussed in the "Forward Looking Statements" section above. No income tax benefits are recorded on the changes associated with the contingent consideration accrual.
(d)
Income tax impacts were calculated using a combined statutory income tax rate of 25.5%.
Quest Diagnostics Inc (DGX) released its 8-K filing on July 23, 2026, revealing robust financial results for the second quarter of 2026. The company reported qu
CompaniesJuly 23 (Reuters) - Quest Diagnostics (DGX.N), opens new tab on Thursday raised its full-year profit forecast, after demand for routine diagnostic testing helped the company beat second-quarter estimates.
Shares of the New Jersey-based company rose about 5% in premarket trading following the results.
Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.
Here are the details:
Demand for the company's diagnostic testing services was strong across its physician, hospital and consumer channels, Quest said.
The results were "well above what was widely expected," Barclays analysts said.
Industry peer Labcorp (LH.N), opens new tab also raised its annual revenue and profit forecasts last quarter, after posting quarterly results above expectations as demand for diagnostic testing remained steady.
Quest Diagnostics reported second-quarter revenue of $3.04 billion, topping analysts' average estimate of $2.97 billion, according to data compiled by LSEG.
Adjusted profit was $3.12 per share, above expectations of $2.83 per share.
Revenue from diagnostic information services, Quest's largest segment, increased 10.3% to $2.98 billion from a year ago, helped by a 13.1% increase in requisition volumes, including 13.0% organic volume growth.
Quest also reported double-digit growth in advanced diagnostics businesses, including Alzheimer's disease blood tests, advanced cardiometabolic tests and liver fibrosis testing.
The company expects 2026 revenue of $11.95 billion to $12.05 billion, above its prior forecast of $11.78 billion to $11.90 billion and analysts' estimate of $11.85 billion.
Quest expects adjusted profit of $11.05 to $11.25 per share in 2026, compared with its previous forecast of $10.63 to $10.83 per share. Analysts expect $10.76 per share.
Reporting by Sahil Pandey in Bengaluru; Editing by Shreya Biswas
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Key Takeaways FAST combines steady dividend payments with digital sales growth and customer expansion. GD supports its dividend profile with a large backlog and recent defense contract awards.DGX is growing through advanced diagnostics, acquisitions, AI and consumer health services. The Top Dividend Yield Companies theme focuses on businesses that pay reliable dividends and have steady earnings. These companies are selected for strong cash flow, consistent profit growth, and a record of keeping dividends intact through different market conditions.
The theme looks for companies with at least 10 years of uninterrupted dividend payments and no dividend cuts. It also favors firms with positive free cash flow and payout ratios that appear reasonable, helping support long-term dividend sustainability. Rather than chasing the highest yields alone, the screen aims to identify income stocks with stronger financial backing.
The focus is on dividend quality, earnings stability, and lower exposure to sectors that can be hit hard during economic downturns. For investors seeking equity income, the theme offers a more defensive approach built around durable dividend payers.
Accordingly, we recommend five Top Dividend Yield Companies with a favorable Zacks Rank. These are: Fastenal Co. (FAST - Free Report) , General Dynamics Corp. (GD - Free Report) , UnitedHealth Group Inc. (UNH - Free Report) , Texas Roadhouse Inc. (TXRH - Free Report) and Quest Diagnostics Inc. (DGX - Free Report) .
Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
FastenalFastenal continues to outgrow a mixed industrial backdrop as key account wins, customer site expansion and deeper adoption of managed inventory and digital tools sustain above-market daily sales growth.
FAST’s shift toward higher-tech, higher-integration selling continues to reinforce its competitive positioning and retention. In the first quarter, digital footprint daily sales increased 13.6%, outpacing company growth, and represented 61.5% of total sales, up from 61.0% a year ago.
FAST remains on track to reach a digital mix target of about 66% in 2026, reflecting continued integration of customer procurement systems, higher eCommerce usage, and ongoing migration toward managed inventory formats.
Fastenal has an expected revenue and earnings growth rate of 12.5% and 14.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.8% in the last seven days. It has a current dividend yield of 2.11%.
General Dynamics Corp.General Dynamics had an impressive backlog of $130.84 billion at the end of the first quarter of 2026. Apart from its well-established domestic market, GD enjoys a significant overseas opportunity with order potential from Poland, the Czech Republic, the United Kingdom, Romania, Denmark, Germany, Spain, Austria, Canada and Switzerland.
Significant awards won by GD in the last reported quarter included a $15.4 billion contract for continued design and support work on the Columbia-class submarines program. GD’s shares have outperformed the industry in the past year.
General Dynamics has an expected revenue and earnings growth rate of 4.8% and 7.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.1% in the last seven days. It has a current dividend yield of 1.73%.
UnitedHealth Group Inc.UnitedHealth Group has shown steady revenue growth, driven by Optum and UnitedHealthcare. Optum remains a key growth driver through its pharmacy services, technology integration, and government solutions.
A strong market position and ongoing expansion initiatives, combined with rising healthcare demand, support sustained long-term growth. Commercial membership also grew for UNH, supporting margins despite headwinds from government programs.
Improvement in high-margin, fee-based commercial plans can help UNH offset the headwinds from eligibility redeterminations and subsidy reductions in government programs. The momentum underscores UNH’s ability to capture demand from employer-sponsored coverage and sustain profitability across its insurance portfolio.
UnitedHealth Group has an expected revenue and earnings growth rate of -0.8% and 13.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 1% in the last seven days. It has a current dividend yield of 2.18%.
Texas Roadhouse Inc.Texas Roadhouse is a full-service, casual dining restaurant chain, which offers assorted seasoned and aged steaks hand-cut daily on the premises and cooked to order over open gas-fired grills. TXRH operates restaurants under the Texas Roadhouse and Aspen Creek names.
TXRH offers its guests a selection of ribs, fish, seafood, chicken, pork chops, pulled pork and vegetable plates, an assortment of hamburgers, salads and sandwiches. TXRH also provides supervisory and administrative services for other licensed and franchised restaurants.
Texas Roadhouse has an expected revenue and earnings growth rate of 11.4% and 5.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% in the last seven days. It has a current dividend yield of 1.52%.
Quest Diagnostics Inc.Quest Diagnostics continues to execute its strategy to deliver solutions that meet the evolving needs of customers for lab insights. DGX is seeing continued momentum in Advanced Diagnostics, including the strong uptake of the AD-Detect blood test.
DGX’s consumer channel is driving growth from an expanding questhealth.com platform as well as collaborations with top wellness and wearables companies. Acquisitions are a major growth driver, with a focus on accretive hospital outreach and independent lab purchases. DGX is also adopting AI, automation and other technologies to drive operational improvements.
Quest Diagnostics has an expected revenue and earnings growth rate of 7.3% and 8.8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.2% in the last 30 days. It has a current dividend yield of 1.63%.
Key Takeaways Quest Diagnostics is expected to post Q2 revenues of $2.98 billion, up 7.9% from the year-ago level. DGX may benefit from physician, hospital and consumer channel growth, including ESRD and Co-Lab expansion. Quest Diagnostics expects advanced diagnostics, Quest AI Companion and Invigorate synergies to aid results. Quest Diagnostics (DGX - Free Report) is set to release second-quarter 2026 results on July 23, before the market opens.
In the last reported quarter, the renowned diagnostics provider posted adjusted earnings per share (EPS) of $2.50, which surpassed the Zacks Consensus Estimate by 5.49%. The company beat on earnings in each of the trailing four quarters, the average surprise being 3.50%.
Q2 Estimates for DGXThe Zacks Consensus Estimate for revenues is pegged at $2.98 billion, indicating an increase of 7.9% from the year-ago reported figure.
The Zacks Consensus Estimate for the company’s EPS suggests a 7.3% rise to $2.81.
Estimate Revision Trend Ahead of DGX’s Q2 EarningsEstimates for Quest Diagnostics’ Q2 earnings have remained unchanged in the past 30 days.
Here’s a brief review of the company’s performance leading up to the announcement.
Factors Likely to Influence DGX’s Q2 ResultsAs in the previous quarter, second-quarter 2026 revenues are expected to have been supported by broad-based demand for its clinical innovations, expansion into new clinical areas, and partnerships with leading healthcare and consumer health organizations.
In the physician channel, a key driver has likely been geographic expansion from greater health plan access, expanding the reach of Quest Diagnostics’ lab services. Enterprise accounts might have contributed additional revenues from new customer wins and expanded business. The company's entry into end-stage renal disease (ESRD), a new clinical area, is expected to have boosted revenues in the to-be-reported quarter.
Growth in the hospital channel may have been driven by Co-Lab solutions, which leverages the company’s lab and process management expertise to optimize quality and drive cost efficiencies. Early in 2026, DGX began scaling its Co-Lab solutions across all 21 hospitals of Corewell Health, its largest implementation to date. This is expected to have had a positive impact on revenues.
Quest Diagnostics Incorporated Price and EPS SurpriseIn the consumer channel, as in recent quarters, the company is likely to have generated strong revenue growth from both questhealth.com and its portfolio of leading consumer health collaborations. This growth is expected to have been driven by notable demand for its new solutions such as the Elite health profile and autoimmune and hormone tests.
In the second quarter of 2026, the company is likely to have maintained momentum in Advanced Diagnostics, which includes non-routine and specialized tests across advanced cardiometabolic, autoimmune, brain health, oncology, and women's and reproductive health areas. Offerings such as the Quest AD-Detect blood test portfolio for Alzheimer's disease, the ANAlyzeR autoimmune solution and the new Flow Cytometry measurable residual disease (MRD) for Myeloma are expected to have supported growth.
The company is also leveraging artificial intelligence through the newly launched Quest AI Companion, which transforms complex biomarker data and reference ranges in test reports into clear, easy-to-understand language. Patients have engaged with Quest AI Companion approximately 350,000 times since its first-quarter launch, and we expect this momentum to have continued in the to-be-reported quarter. Additionally, operational efficiencies and cost synergies from the Invigorate initiative are likely to have supported Quest Diagnostics' operating performance.
What Our Model Unveils for DGXPer our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see below.
Earnings ESP: Quest Diagnostics has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Top MedTech PicksHere are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around:
Hinge Health Inc. (HNGE - Free Report) has an Earnings ESP of +4.24% and a Zacks Rank #1. The company is expected to release second-quarter 2026 results soon.
In the trailing four quarters, HINGE delivered an average surprise of 179.54%. The Zacks Consensus Estimate for second-quarter EPS implies a decrease 11.9% from the year-ago quarter’s figure.
Neurocrine Biosciences (NBIX - Free Report) has an Earnings ESP of +40.60% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2026 results soon.
NBIX’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 9.08%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for an increase of 112.3% from the year-ago quarter’s figure.
West Pharmaceutical Services (WST - Free Report) has an Earnings ESP of +1.09% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2026 results on July 23.
WST’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.37%. The Zacks Consensus Estimate for WST’s second-quarter EPS implies a rise of 13% from the year-ago reported figure.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Quest Diagnostics (DGX - Free Report) Headquartered in Secaucus, New Jersey, Quest Diagnostics Inc. provides diagnostic information services to a broad range of customers within its primary customer channels of physicians, hospitals, patients, and consumers. The company provides services to Independent Delivery Networks (IDN) throughout the United States, through its Professional Lab Services (PLS) offerings, which allow them to build and execute their laboratory strategy, improve quality, reduce healthcare costs, and focus on core competencies. The company is a key provider of reference testing for approximately half of the hospitals in the United States.
DGX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 19.41; value investors should take notice.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $10.72 per share. DGX also boasts an average earnings surprise of +3.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, DGX should be on investors' short list.
American Oncology Network (AON) and other community oncology providers launching now as part of a pilot program that provides access to Haystack MRD
, /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), a leading provider of diagnostic information services, today announced it is integrating its Haystack MRD® ctDNA test and Comprehensive Genomic Profiling services for solid tumor cancers within OncoEMR®, an electronic health record (EHR) from Flatiron Health, via a pilot program with American Oncology Network (AON) and other community oncology providers. Flatiron Health is a leading healthtech company dedicated to expanding the possibilities of point-of-care solutions in oncology.
Quest is the largest clinical reference lab to integrate oncology tests in OncoEMR using the opt-in OncoEMR Molecular Profiling Integration (MPI) ordering feature, which is designed to support the specialized test ordering requirements of comprehensive molecular tests. Once completed, the integration will enable 4,700 clinicians across the Flatiron network of 1,600 community-based cancer care locations in the United States to quickly access the Quest services.
"At Flatiron, we're focused on helping oncology teams get the answers they need to deliver the best possible care," said Quincy Weatherspoon, Chief Network Officer, US Point of Care, Flatiron Health. "By integrating Quest's advanced oncology services directly into existing workflows, we're making it easier for physicians to access critical testing insights without adding complexity to their day. This collaboration helps reduce administrative burden so clinicians can spend less time navigating processes and more time focused on caring for patients with cancer."
Molecular oncology testing often involves dozens or even hundreds of individual genetic biomarkers, which can complicate ordering workflows and producing long, complex results reports. The use of OncoEMR MPI will enable providers to set up accounts for Quest services faster, order tests with fewer steps, and receive easy-to-understand reports within their daily EHR workflows.
Select providers can now order and receive results from Quest using the OncoEMR MPI capability as part of a pilot program. Among the pilot customers is American Oncology Network (AON), a leader in community oncology with more than 350 providers practicing across 21 states. Nearly 200 AON sites now have access to OncoEMR MPI and can use it to order the Quest tests. Quest plans to launch the full OncoEMR MPI integration to providers nationwide in the second half of the year.
"At AON, our aim is to provide comprehensive support, ancillary services and practice management benefits to help community physicians to make cancer care better. Empowering them to use OncoEMR MPI via Quest Diagnostics is an important step in that mission," said Dr. Brian Mulherin, Medical Director at AON. "Under this arrangement, our rapidly growing network of physicians can quickly and easily order Quest's innovative cancer tests, such as Haystack MRD, to help guide patient care."
Providers in the pilot now have access to some of Quest's most innovative cancer tests, including Haystack MRD, a highly accurate circulating-tumor DNA (ctDNA) minimal residual disease (MRD) test for solid tumor cancers. In addition, the company's Comprehensive Genomic Profiling portfolio includes several panels that use advanced sequencing to identify up to 530 genes associated with therapy response, providing physicians with necessary insights to determine appropriate treatment for their patients.
"At Quest Diagnostics, we strive to provide comprehensive cancer services that empower providers to work with patients to make optimal care decisions," said Asia Chang, Vice President and General Manager, Oncology at Quest Diagnostics. "We know that positive outcomes in oncology start with excellent diagnostics, but they don't stop there. We're looking forward to providing oncologists at AON and other organizations a single-source ordering and results solution via OncoEMR MPI, as well as the world-class expertise they've come to expect from Quest."
Quest's integration of OncoEMR MPI reflects the company's strategy to make testing simpler and smarter, including through the use of specialized IT and EHR technologies. Last summer, the company began to offer its Haystack MRD test through the Epic Aura platform and now provides a range of specialized tests, from prenatal screening to Alzheimer's disease, through the platform.
About Quest Diagnostics
Quest Diagnostics works across healthcare to create a healthier world, one life at a time. We connect people, from clinicians to consumers, with laboratory insights that illuminate a path to better health. With a focus on delivering smarter, simpler testing, we help reveal new avenues to identify and treat disease, empower healthy behaviors and improve healthcare management. Quest Diagnostics serves half the physicians and hospitals in the United States and one in three American adults each year, and our nearly 57,000 employees work together to deliver diagnostic insights that inspire actions to transform lives. www.QuestDiagnostics.com
About Flatiron Health
Flatiron Health transforms cancer care and research through a unified, global oncology engine powered by expert-validated AI and deep clinical and scientific expertise. Built from the experiences of millions of patients across the US, UK, Germany, and Japan, our real-world evidence informs the research, regulatory, commercial, and treatment decisions shaping oncology today. In the US, our point-of-care technology empowers clinicians to deliver smarter, more connected care while generating deeper insights that help advance cancer research. Flatiron Health is an independent affiliate of the Roche Group. Flatiron.com @FlatironHealth
About American Oncology Network
American Oncology Network (AON) is an alliance of physicians and seasoned healthcare leaders partnering to ensure the long-term success and viability of community oncology and other specialties. Founded in 2018, AON's rapidly expanding network represents more than 350 providers practicing across 21 states. AON pioneers innovative healthcare solutions through its physician-led model, fostering value-based care that improves patient outcomes while reducing costs and expanding access to quality care. AON equips its network physicians with the tools they need to thrive independently while providing comprehensive support, integrated revenue-diversifying ancillary services, and practice management expertise, enabling physicians to focus on what matters most – providing the highest standard of care for every patient. AON is committed to promoting health equity by addressing disparities in cancer care and ensuring that all patients have access to the care they need to achieve optimal health outcomes. With a focus on innovation and collaboration, AON is shaping the future of community oncology. For more information, please visit AONcology.com more information, or follow us on LinkedIn, Facebook, X (formerly Twitter) and YouTube.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Quest Diagnostics (DGX - Free Report) Headquartered in Secaucus, New Jersey, Quest Diagnostics Inc. provides diagnostic information services to a broad range of customers within its primary customer channels of physicians, hospitals, patients, and consumers. The company provides services to Independent Delivery Networks (IDN) throughout the United States, through its Professional Lab Services (PLS) offerings, which allow them to build and execute their laboratory strategy, improve quality, reduce healthcare costs, and focus on core competencies. The company is a key provider of reference testing for approximately half of the hospitals in the United States.
DGX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Medical stock. DGX has a Momentum Style Score of A, and shares are up 7.7% over the past four weeks.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.04 to $10.72 per share. DGX boasts an average earnings surprise of +3.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DGX should be on investors' short list.
Have you been paying attention to shares of Quest Diagnostics (DGX - Free Report) ? Shares have been on the move with the stock up 11.5% over the past month. The stock hit a new 52-week high of $216.87 in the previous session. Quest Diagnostics has gained 24.5% since the start of the year compared to the 1.1% move for the Zacks Medical sector and the 17.8% return for the Zacks Medical - Outpatient and Home Healthcare industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 21, 2026, Quest Diagnostics reported EPS of $2.5 versus consensus estimate of $2.37 while it beat the consensus revenue estimate by 3.14%.
For the current fiscal year, Quest Diagnostics is expected to post earnings of $10.72 per share on $11.84 in revenues. This represents a 8.83% change in EPS on a 7.29% change in revenues. For the next fiscal year, the company is expected to earn $11.56 per share on $12.39 in revenues. This represents a year-over-year change of 7.84% and 4.64%, respectively.
Valuation MetricsWhile Quest Diagnostics has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Quest Diagnostics has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 20.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.1X. On a trailing cash flow basis, the stock currently trades at 14.2X versus its peer group's average of 15X. Additionally, the stock has a PEG ratio of 2.57. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Quest Diagnostics currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Quest Diagnostics meets the list of requirements. Thus, it seems as though Quest Diagnostics shares could have potential in the weeks and months to come.
How Does DGX Stack Up to the Competition?Shares of DGX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Aveanna Healthcare Holdings Inc. (AVAH - Free Report) . AVAH has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. Aveanna Healthcare Holdings Inc. beat our consensus estimate by 38.46%, and for the current fiscal year, AVAH is expected to post earnings of $0.70 per share on revenue of $2.65 billion.
Shares of Aveanna Healthcare Holdings Inc. have gained 30.7% over the past month, and currently trade at a forward P/E of 12.6X and a P/CF of 12.85X.
The Medical - Outpatient and Home Healthcare industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DGX and AVAH, even beyond their own solid fundamental situation.
Key Takeaways DGX gained 3% after Haystack MRD won NYSDOH approval for residual or recurrent solid tumor cancers. Quest Diagnostics can now offer Haystack MRD testing in all 50 states after New York approval. DGX's Haystack MRD detected clinical complete response in 1.4 months versus over 6 months with imaging. Quest Diagnostics’ (DGX - Free Report) Haystack MRD test recently received approval from the New York State Department of Health's (“NYSDOH”) Clinical Laboratory Evaluation Program (“CLEP”) for use in identifying residual or recurring disease in patients with a range of solid tumor cancers.
This development is expected to boost the company’s oncology arm.
Likely Trend of DGX Stock Following the NewsAfter the announcement, DGX shares edged up 3%, closing at $203.11 yesterday.
The company continues to build its presence in blood-based MRD testing. In January 2026, new research presented at the ASCO Gastrointestinal Cancers Symposium highlighted the strong clinical value of Quest Haystack MRD in monitoring colorectal cancer. DGX also launched the Flow Cytometry MRD blood test for myeloma. Henceforth, we expect the latest approval to maintain a positive market sentiment toward the stock in the upcoming days.
Quest Diagnostics boasts a market capitalization of $22.48 billion at present. The Zacks Consensus Estimate for 2026 earnings suggests an 8.8% year-over-year increase and the same for revenues implies 7.2% growth. The company beat on earnings in each of the trailing four quarters, delivering average surprise of 3.5%.
About DGX’s Haystack MRDHaystack MRD is a tumor-informed, next-generation MRD test that detects ultralow levels of ctDNA to uncover residual or recurrent disease with exceptional sensitivity and specificity. Haystack MRD was designed to give oncologists the confidence to detect residual disease earlier, identify recurrence before it becomes clinically apparent, and help evaluate patient response to treatment.
The FDA granted Haystack MRD the Breakthrough Device Designation in 2025 for use in Stage II colorectal cancer. The test was developed under CLIA regulations and has been available for clinician ordering in 49 states and the District of Columbia since late 2024.
Importance of NYSDOH’s Approval of Haystack MRDNew York maintains a highly rigorous clinical laboratory oversight program, requiring formal technical review and approval of laboratory developed tests before they may be offered to patients in the state. With this approval, Haystack MRD is now authorized for patient testing in all 50 states of the United States. New York's approval is another proof point for Haystack MRD's quality and technical sophistication.
Clinical Evidence for Haystack MRDHaystack MRD's clinical utility has been demonstrated in rigorous investigational settings, including the landmark study of non-operative management of patients with locally advanced mismatch repair-deficient (dMMR) solid tumors, which was published in The New England Journal of Medicine in May 2025. In that study, ctDNA testing, using Haystack MRD, was found to be a "reliable liquid biopsy surrogate" that identified clinical complete response at a median of 1.4 months compared to more than 6 months using imaging methods.
Image Source: Zacks Investment Research
Industry Prospects Favor DGXPer a report by Grand View Research, the global MRD testing market size is projected to reach $4.50 billion by 2030, at a CAGR of 10.1% from 2025 to 2030. The market for MRD is driven by rising cancer incidence and prevalence, technological advancements in diagnostic tools and integration with personalized medicines.
DGX Stock Price PerformanceOver the past year, DGX’s shares have gained 13.7% compared with the industry’s 8.9% growth.
DGX’s Zacks Rank and Other Key PicksQuest Diagnostics currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Integra LifeSciences (IART - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Globus Medical has an earnings yield of 5.5%, well ahead of the industry’s negative 3% yield. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 26.3%. The company’s shares have rallied 43.8% against the industry’s 4.8% decline over the past year.
GMED carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Integra LifeSciences, carrying a Zacks Rank #2 at present, has an earnings yield of 16% against the industry’s negative 3% yield. Shares of the company have gained 22.8% compared with the industry’s 4.8% growth. IART’s earnings topped estimates in each of the trailing four quarters, the average surprise being 16.8%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, has an earnings yield of 9.2% compared with the industry’s 2.8% yield. Shares of the company have climbed 43.1% against the industry’s 27.9% decline. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 16.3%.
On June 24, 2026, Quest Diagnostics Inc (DGX) shares rose 3.0% today, currently trading at $203.11. This performance places the stock well within its 52-week ra
Key Takeaways DGX posted strong physician channel growth and expanded hospital and consumer testing initiatives.DGX saw double-digit AD-Detect blood test revenue growth and expanded oncology MRD offerings.DGX is advancing AI, automation and Project Nova while managing a sizable debt load. Quest Diagnostics (DGX - Free Report) is well-poised for growth in the coming quarters, supported by its continued focus on meeting the evolving needs of its core customers — physicians, hospitals and consumers. The company is seeing continued momentum in Advanced Diagnostics, including the strong uptake of the AD-Detect blood test. Efforts to drive operational improvements through the adoption of AI, automation and other technologies also sound very encouraging. Yet, Quest Diagnostics’ solvency level remains a concern. Macroeconomic pressures can weigh on its operations, too.
Over the past year, this Zacks Rank #3 (Hold) stock has rallied 7.7% compared with the industry’s 8.2% growth and the S&P 500 composite’s 23.2% rise.
The renowned provider of diagnostic information services has a market capitalization of $21.59 billion. Quest Diagnostics has an earnings yield of 5.50%. The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.50%.
Tailwinds Supporting DGXGrowth Momentum in Base Business: Quest Diagnostics delivered high single-digit growth in physician channel revenues in first-quarter 2026, driven by strong demand for innovative testing solutions, expanded health plan access and enterprise account growth. The company also recorded growth in end-stage renal disease, a newer clinical area focused on lab testing for dialysis patients. Volume growth was driven by Fresenius Medical Care’s dialysis network and contributions from newly added independent dialysis clinics and other providers.
In the hospital channel, the company’s flexible solutions allow customers to free up capital while accessing diagnostic innovation and expertise. In early 2026, Quest Diagnostics began scaling its Co-Lab Solutions, including reference laboratory testing, professional laboratory management services, laboratory workforce and supply-chain management, and analytics across all 21 hospitals of Corewell Health.
Image Source: Zacks Investment Research
The consumer-testing platform, QuestHealth.com, continues to gain strong momentum. Quest Diagnostics is deepening partnerships with leading consumer health and wellness brands like WHOOP and OURA Health, integrating its extensive laboratory testing and technology directly into their mobile platforms.
Strong Potential of Advanced Diagnostics: Quest Diagnostics drives growth across its customer channels through fast-growing, advanced diagnostics spanning five clinical areas — advanced cardiometabolic, autoimmune, brain health, oncology, and women's and reproductive health. In brain health, revenues from the AD-Detect blood test for Alzheimer's disease continued to grow at a double-digit rate in the first quarter of 2026.
The cardiometabolic and endocrine portfolio growth was driven by robust demand for tests of Lp(a) and ApoB, as well as for kidney, liver and reproductive hormones.
In oncology, the company continues to build its presence in blood-based minimal residual disease (MRD) testing. In January 2026, new research presented at the ASCO Gastrointestinal Cancers Symposium highlighted the strong clinical value of Quest Haystack MRD in monitoring colorectal cancer. The company also launched the Flow Cytometry MRD blood test for myeloma.
Operational Excellence, a Strategic Priority: Quest Diagnostics’ Invigorate program consistently targets 2% annual savings through structured plans to drive savings and improve productivity across the value chain. The company is deploying automation and AI technologies to improve quality, service, efficiency and the workforce experience. The new Quest AI Companion tool transforms complex biomarker data and reference ranges on test reports into clear, plain language. Quest Diagnostics is scaling the planning and design work for Project Nova, a multi-year initiative to transform its order-to-cash processes and systems and is on track to implement the first wave of solutions in the fall of 2027.
What Ails DGX?Escalating Debt Level: At the end of the first quarter of 2026, long-term debt totaled $5.16 billion, while the cash and cash equivalent balance was only $393 million. The current portion of the debt was $503 million. Debt-to-capital ratio was 42.5%, down sequentially 1.6%. A higher debt level induces higher interest payments, which come along with the risk of failure to pay the same. The times interest ratio, which indicates the company’s capacity to pay interest, was 6.3% in the quarter.
Unstable Macroeconomic Backdrop: As the U.S. healthcare system continues to evolve, Quest Diagnostics faces several inherent risks. Government payers, such as Medicare and Medicaid, have taken steps to reduce the utilization and reimbursement of healthcare services, including clinical testing services. The industry-wide trend of consolidation has resulted in larger insurance plans with significant bargaining power, making it difficult for Quest Diagnostics to negotiate fee arrangements and possibly limiting access to its newer innovative solutions. With the new U.S. administration in place, any changes in U.S. healthcare regulation could have a material adverse effect on the company’s business.
DGX Stock Estimate TrendThe Zacks Consensus Estimate for Quest Diagnostics’ 2026 earnings per share (EPS) has remained constant at $10.72 in the past 30 days.
The consensus estimate for the company’s 2026 revenues is pegged at $11.83 billion. This suggests 7.2% growth from the year-ago reported number.
Key PicksSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) .
Globus Medical has an earnings yield of 5.9% compared to the industry’s negative 3.5% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 35% against the industry’s 6.3% fall over the past year.
GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology, sporting a Zacks Rank #1, has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 5.5% growth. Shares of the company have dropped 6.8% against the industry’s 7.8% growth. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.
Integra LifeSciences, carrying a Zacks Rank #2 (Buy), has an earnings yield of 13.6% against the industry’s negative 3.5% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 48.3% against the industry’s 6.4% decline over the past year.
Achieving the rigorous laboratory standard broadens access for providers and patients in New York; applies to use of Haystack MRD for patients with solid tumor cancers
, /PRNewswire/ -- Quest Diagnostics® (NYSE: DGX), a leading provider of diagnostic information services, today announced that the New York State Department of Health's (NYSDOH) Clinical Laboratory Evaluation Program (CLEP) has approved the company's Haystack MRD® test, a circulating tumor DNA (ctDNA) liquid biopsy test, for use in identifying residual or recurring disease in patients with a range of solid tumor cancers.
New York maintains a highly rigorous clinical laboratory oversight program, requiring formal technical review and approval of laboratory developed tests before they may be offered to patients in the state. With this approval, Haystack MRD is now authorized for patient testing in all 50 U.S. states. The test was developed under CLIA regulations and has been available for clinician ordering since late 2024 in 49 states and the District of Columbia.
"This approval represents the culmination of our many years of hard work and commitment to delivering a highly accurate test that can meaningfully improve patient care," said Dan Edelstein, Vice President and General Manager for Haystack Oncology, a Quest Diagnostics company. "Haystack MRD was designed to give oncologists the confidence to detect residual disease earlier, catch recurrence before it becomes clinically apparent, and help identify response to treatment. New York's approval is another proof point for Haystack MRD's quality and technical sophistication, and we look forward to extending access to this important innovation for clinicians and patients in the state."
In addition, Haystack MRD's clinical utility has been demonstrated in rigorous investigational settings, including the landmark study of non-operative management of patients with locally advanced mismatch repair–deficient (dMMR) solid tumors, which was led by Dr. Andrea Cercek and colleagues at Memorial Sloan Kettering Cancer Center and published in The New England Journal of Medicine in May 2025. In that study, ctDNA testing, using Haystack MRD, was found to be a "reliable liquid biopsy surrogate" that identified clinical complete response at a median of 1.4 months, compared to more than 6 months using imaging methods.
"In our study of non-operative management for dMMR solid tumors, the use of MRD testing provided additional molecular information that complemented traditional assessments such as imaging and endoscopy," said Dr. Cercek, Medical Oncologist, Memorial Sloan Kettering Cancer Center. "For patients who may avoid surgery, having multiple tools to evaluate treatment response and monitor for recurrence is important. These findings highlight the crucial role of MRD testing in informing patient management and underscore the need for continued study as these approaches are integrated into clinical practice."
About Haystack Oncology
Haystack Oncology represents the culmination of over 20 years of collaboration to advance technical and clinical development in liquid biopsy technologies by cancer genomics pioneers at Johns Hopkins School of Medicine. The company, a wholly owned subsidiary of Quest Diagnostics, developed Haystack MRD, a tumor-informed, next-generation MRD test that detects ultralow levels of ctDNA to uncover residual or recurrent disease with exceptional sensitivity and specificity. Haystack Oncology works with biopharmaceutical companies to accelerate and inform clinical development programs and advance important therapeutics to global markets, from early phase clinical development to companion diagnostics. Haystack MRD was developed and validated in a CLIA-certified laboratory and is available for commercial use as a lab-developed test (LDT) by Quest Diagnostics. The FDA granted Haystack MRD Breakthrough Device Designation in 2025 for use in Stage II colorectal cancer. Haystack MRD is also available for clinical trials as an investigational device by Haystack Oncology in laboratories located in Baltimore, Maryland; Hamburg, Germany; and Helsinki, Finland. www.haystackmrd.com
About Quest Diagnostics
Quest Diagnostics works across healthcare to create a healthier world, one life at a time. We connect people, from clinicians to consumers, with laboratory insights that illuminate a path to better health. With a focus on delivering smarter, simpler testing, we help reveal new avenues to identify and treat disease, empower healthy behaviors and improve healthcare management. Quest Diagnostics serves half the physicians and hospitals in the United States and one in three American adults each year, and our nearly 57,000 employees work together to deliver diagnostic insights that inspire actions to transform lives. www.QuestDiagnostics.com
, /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), a leader in diagnostic information services, today unveiled its 2025 Corporate Responsibility Report.
Quest Diagnostics 2025 Corporate Responsibility Report Reach and Impact Statistics The theme of the report, At the Center of Healthcare, reflects Quest's connective role in healthcare as a provider of laboratory insights that empower more informed, proactive and personal care. The 2025 report details Quest's accomplishments over the last year and progress toward goals set in 2021 across the company's four strategic pillars of corporate responsibility: health access, employee and community engagement, governance and ethics, and environmental sustainability.
"Our care for the many communities we serve and live in shines through the actions we've taken to broaden healthcare access and improve our employee experience and environmental impact," said Jim Davis, Quest Diagnostics Chairman, CEO and President. "Over the past year, we made our services accessible and affordable for more patients and consumers, invested in our people, and strengthened our policies and systems in areas, such as medical quality and AI, that reflect Quest's deep focus on responsible business practice. These achievements demonstrate the passion and commitment of our nearly 57,000 employees and many collaborators across healthcare to working together to create a healthier world, one life at a time."
Report highlights:
Health access
Provided over one million discounted or donated testing requisitions to support lab testing access at a cost of more than $21 million to Quest. Through the Quest Diagnostics Foundation, invested in nonprofits and other organizations committed to improving access to healthcare, nutrition, and vital support services for underserved populations in Baltimore, Maryland, Paterson, New Jersey, and Chicago, Illinois. Employee and community engagement
Improved overall workforce retention by 2.1 percentage points compared to 2024 and achieved an Employee Engagement score 3 points above a healthcare industry benchmark. Welcomed over 2,500 employees to eleven employee business networks, surpassing 11,000 members. Governance and ethics
Added the new role of senior vice president and chief quality and regulatory affairs officer and strengthened global organizational quality and regulatory processes. Enhanced our AI and cybersecurity governance to promote responsible use of AI and bolster systems to address emerging security threats. Environmental sustainability
Achieved International Organization for Standardization (ISO) 14001:2015 certification for the environmental management systems at our laboratories in Lewisville, Texas and Marlborough, Massachusetts, reaching our goal to certify five labs by the end of 2025. Supported access to testing for individuals exposed to environmental health hazards, including firefighters affected by the 2025 Palisades fire in Los Angeles County and citizens in a Texas-designated cancer cluster. To read the full report, click on 2025 Corporate Responsibility Report.
About Quest Diagnostics
Quest Diagnostics works across healthcare to create a healthier world, one life at a time. We help connect people, from clinicians to consumers, with laboratory insights that illuminate a path to better health. With a focus on delivering smarter, simpler testing, our insights reveal new avenues to identify and treat disease, inspire healthy behaviors, and improve healthcare management. Quest Diagnostics serves half the physicians and hospitals in the United States and one in three adult Americans each year, and our nearly 57,000 employees work together to deliver diagnostic insights that inspire actions to transform lives. www.QuestDiagnostics.com.
, /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE: DGX), a leader in diagnostic information services, announced today that it will report its second quarter 2026 financial results on Thursday, July 23, 2026, before the market opens. It will hold its quarterly conference call to discuss the results beginning at 8:30 a.m. Eastern Time on that day.
The conference call can be accessed by dialing 888-455-0391 within the U.S. and Canada, or 773-756-0467 internationally, using the passcode: "7895081." The earnings release and live webcast will be posted on www.QuestDiagnostics.com/investor. The company suggests participants dial in approximately 10 minutes before the call.
A replay of the call may be accessed online at www.QuestDiagnostics.com/investor or by phone at 866-388-5361 for domestic callers or 203-369-0416 for international callers; no passcode is required. Telephone replays will be available from approximately 10:30 a.m. Eastern Time on July 23, 2026, until midnight Eastern Time on August 6, 2026.
Anyone listening to the call is encouraged to read the company's periodic reports on file with the Securities and Exchange Commission, including the discussion of risk factors and historical results of operations and financial condition in those reports.
About Quest Diagnostics
Quest Diagnostics works across healthcare to create a healthier world, one life at a time. We connect people, from clinicians to consumers, with laboratory insights that illuminate a path to better health. With a focus on delivering smarter, simpler testing, we help reveal new avenues to identify and treat disease, empower healthy behaviors, and improve healthcare management. Quest Diagnostics serves half the physicians and hospitals in the United States and one in three American adults each year, and our nearly 57,000 employees work together to deliver diagnostic insights that inspire actions to transform lives. www.QuestDiagnostics.com
Published in Nature Communications, the new study finds that nearly 70% of a common bacterial strain that causes urinary tract infections, pneumonia and wound infections was non-susceptible to the three most used oral antibiotics
, /PRNewswire/ -- A common bacterial strain that lives naturally in people's guts can cause a dangerous or deadly infection for some, especially when it becomes multidrug-resistant and causes chronic urinary-tract infections (UTIs) in elderly women. But the extent of its effect on the broader population and its prevalence in the community was not well known – until now.
Klebsiella pneumoniae is a growing drug-resistance problem, according to a groundbreaking new study in the peer-reviewed Nature Communications by scientists from the Hackensack Meridian Center for Discovery and Innovation (CDI), part of Hackensack Meridian Health (HMH), and Quest Diagnostics (NYSE: DGX), one of the nation's leading providers of diagnostic information services.
More than 2,000 samples across 42 states were screened through the collaboration, as outlined in the paper entitled "Nationwide spread of multidrug resistant Klebsiella pneumoniae across U.S. communities." A total of 267 multidrug resistant sequence types were identified, the data finds.
"For a long time, highly resistant superbugs were primarily considered a problem for hospitals, but this study reveals a dangerous shift. These bacteria are spreading, and causing common infections that are resistant to the recommended antibiotics used to treat them," said co-author Meghan W. Starolis, MS, Ph.D., senior science director, Infectious Disease, Quest Diagnostics. "This research provides critical updates for public health, and, more importantly, it provides the genetic blueprint needed to start developing vaccines or other treatments for vulnerable patients."
Klebsiella pneumoniae is an overlooked threat. It not only causes urinary tract infections, pneumonia and wound infections, but also kills about 600,000 individuals annually worldwide, according to the World Health Organization. In the United States, it's the most common cause of hospital-acquired pneumonia. Worldwide, it's the second-leading cause of UTIs – and has shown itself to be especially prevalent in women of advanced age.
"Our work shows that there is a rapidly-evolving, plasmid-driven epidemic of community-associated multidrug resistant Klebsiella pneumoniae across the United States," said co-author Barry Kreiswirth, Ph.D., the veteran microbiologist at the CDI and professor of Medical Sciences at the Hackensack Meridian School of Medicine, who spearheaded the years-long project. "We need to continue surveillance of what these bacteria are doing, so we can detect, and ideally control, the emergence of the next high-risk clone."
Of the roughly 2,000 samples in the study, more than two-thirds were from female patients, and about three-quarters were from people older than 60. All told, 100 percent of the bacteria investigated were classified as multidrug resistant, and 69.5 percent were non-susceptible to the three most common oral antibiotics (fluoroquinolones, Bactrim and nitrofurantoin), "underscoring the urgent need for new oral treatment options." For patients who have these strains, the only option may be injectable antibiotics, said Kreiswirth.
The main culprit in this resistance spread is a gene known as CTX-M-15, which is easily swapped between different bacteria on plasmids (stray strands of DNA outside chromosomes). The gene has spread to hundreds of strains, bringing with it not only antibiotic-resistance traits but also tolerance for stress and metal exposure which has potentially enhanced its survival outside of human hosts, according to the findings.
The multidrug-resistant strains were previously identified mostly as a healthcare-associated pathogen. Beginning around 2007, however, studies started to identify an "expanding and under-recognized reservoir" of the culprit Extended-Spectrum Beta-Lactamase (ESBL) gene. The U.S. Centers for Disease Control and Prevention conducted a study finding a 53.3 percent increase in ESBL-producing bacteria between 2012 and 2017 – pointing toward community transmission.
The study by the CDI and Quest bridges that gap, the authors write. Geographical trends showed regional and statewide spread, and multi-state dissemination, "indicating widespread, underrecognized community reservoirs," according to the analysis.
Quest and CDI worked together to make this research possible. Using its nationwide network of microbiology labs, Quest Diagnostics provided CDI with deidentified culture isolates that were determined to be resistant to antibiotics for further sequencing by CDI, providing the researchers with a diverse sample set for analyzing.
"This is establishing a baseline," concluded Kreiswirth. "We need to keep looking at this to better understand the extent of the problem. But this is definite confirmation that there is a problem – and it needs to be addressed."
The study's strengths include its large scale and unique focus on everyday community infections rather than hospital cases; however, its limitation is the lack of detailed patient medical histories, making it difficult to know exactly where or how the patients originally contracted the infections.
"We are very proud to collaborate with the Center for Discovery and Innovation on this research," said Yuri Fesko, M.D., senior vice president and chief medical officer, Quest Diagnostics. "Relationships between commercial clinical labs and research organizations like CDI are so important to improving and informing public health."
Quest and Hackensack Meridian have a long-standing collaboration through which Quest provides reference laboratory testing and manages HMH's inpatient hospital labs. The study is the largest yet by researchers with the two NJ-based organizations.
ABOUT HACKENSACK MERIDIAN HEALTH
Hackensack Meridian Health brings together leading–edge care, research, and medical education to deliver the best outcomes, and care shaped around the unique needs of every patient we serve. By connecting prevention, specialty care, and life-saving discoveries, we improve every aspect of healthcare – from routine visits to the most advanced treatments, close to home and across the globe.
Home to New Jersey's first and only top 20 hospital in the nation according to U.S. News & World Report 2025-26, we ensure people can count on exceptional care today and benefit from the cures of tomorrow. Our not-for-profit network of 18 hospitals, 500+ care locations, and over 40,000 team members extend the horizon of health for all. And because medicine is never finished, we Keep Getting Better for every patient, family, and community who counts on us. Learn more at HackensackMeridianHealth.org and to donate visit GiveHMH.org.
About Quest Diagnostics
Quest Diagnostics works across healthcare to create a healthier world, one life at a time. We connect people, from clinicians to consumers, with laboratory insights that illuminate a path to better health. With a focus on delivering smarter, simpler testing, we help reveal new avenues to identify and treat disease, empower healthy behaviors and improve healthcare management. Quest Diagnostics serves half the physicians and hospitals in the United States and one in three American adults each year, and our nearly 57,000 employees work together to deliver diagnostic insights that inspire actions to transform lives. www.QuestDiagnostics.com
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Quest Diagnostics (DGX - Free Report) Headquartered in Secaucus, New Jersey, Quest Diagnostics Inc. provides diagnostic information services to a broad range of customers within its primary customer channels of physicians, hospitals, patients, and consumers. The company provides services to Independent Delivery Networks (IDN) throughout the United States, through its Professional Lab Services (PLS) offerings, which allow them to build and execute their laboratory strategy, improve quality, reduce healthcare costs, and focus on core competencies. The company is a key provider of reference testing for approximately half of the hospitals in the United States.
DGX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 18.45; value investors should take notice.
For fiscal 2026, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $10.72 per share. DGX boasts an average earnings surprise of +3.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, DGX should be on investors' short list.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Quest Diagnostics (DGX - Free Report) Headquartered in Secaucus, New Jersey, Quest Diagnostics Inc. provides diagnostic information services to a broad range of customers within its primary customer channels of physicians, hospitals, patients, and consumers. The company provides services to Independent Delivery Networks (IDN) throughout the United States, through its Professional Lab Services (PLS) offerings, which allow them to build and execute their laboratory strategy, improve quality, reduce healthcare costs, and focus on core competencies. The company is a key provider of reference testing for approximately half of the hospitals in the United States.
DGX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Medical stock. DGX has a Momentum Style Score of B, and shares are up 0.6% over the past four weeks.
For fiscal 2026, 10 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $10.72 per share. DGX boasts an average earnings surprise of +3.5%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DGX should be on investors' short list.
On April 21, 2026, Quest Diagnostics Inc (DGX) shares rose 4.5% to a current price of $205.04. This move is part of a broader uptrend, with the stock experienci
Cwm LLC lessened its position in Quest Diagnostics Incorporated (NYSE: DGX) by 28.4% in the undefined quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 18,950 shares of the medical research company's stock after selling 7,532 shares during the quarter. Cwm LLC's holdings in Quest
Quest Diagnostics delivered Q1 2026 revenue of $2.9 billion (+9.2% YoY) and EPS of $2.24 (+15.5% YoY), but shares dipped post-earnings. DGX maintains a strong core business with high barriers to entry, steady but unspectacular growth, and industry-leading market access. Forward P/E is ~19x and P/S
AEGON ASSET MANAGEMENT UK Plc cut its holdings in Quest Diagnostics Incorporated (NYSE: DGX) by 23.5% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 90,605 shares of the medical research company's stock after selling 27,786
SECAUCUS, N.J., April 27, 2026 /PRNewswire/ -- Quest Diagnostics Incorporated (NYSE: DGX) (the "Company"), a leader in diagnostic information services, today announced the pricing of a public offering of $500 million aggregate principal amount of its 5.000% senior notes due 2036 (the "Notes") under Quest Diagnostics' shelf registration statement.
Quest Diagnostics delivered strong Q1 results with 9.2% revenue growth and 13% EPS growth, driving management to raise 2026 guidance. DGX's growth is fueled by advanced diagnostics, robust consumer and hospital channels, and efficiency gains from AI and automation. Key risks include margin pressure from lower-priced partnership volumes and potential Medicare reimbursement cuts under PAMA.
Guidance upgrades are generally among the most bullish announcements a company can make, signaling that the outlook is even better than previously expected.
SECAUCUS, N.J., May 19, 2026 /PRNewswire/ -- Quest Diagnostics (NYSE: DGX), a leader in diagnostic information services, today announced that its Board of Directors declared a quarterly cash dividend of $0.86 per share, payable on July 22, 2026 to shareholders of record of Quest Diagnostics common stock on July 8, 2026.
Quest Diagnostics (DGX) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
An aging population and rising telehealth and AI adoption boost demand in the Zacks Medical - Outpatient and Home Healthcare industry. DGX, DVA, LFST and AVAH stand to benefit.
