Analyst Insights: Quest Diagnostics Ratings and Growth Surge

Analysts express diverse opinions on Quest Diagnostics. Recent revenue growth of 8.41% and a strong net margin of 9.04% indicate financial strength, while lower ROE presents challenges. Investors should weigh all factors before making decisions.

Date: 07-01-2025

AI Rating: 7

Analyst Opinions: Analysts have varied opinions on Quest Diagnostics, indicating both bullish and bearish sentiments. As reported, the total rating breakdown shows 3 bullish, 4 somewhat bullish, and 3 indifferent ratings, reflecting a consensus that may influence potential investors.

Revenue Growth: An impressive revenue growth rate of 8.41% was achieved as of September 30, 2024. This shows the company is improving its top-line earnings, which can positively affect stock prices as investors generally favor growth.

Net Margin: With a net margin of 9.04%, Quest Diagnostics showcases strong profitability and effective cost management compared to its industry peers, indicating solid financial health and possibly attracting investors looking for stable returns.

Return on Equity (ROE): However, the reported ROE of 3.35% is below industry averages, suggesting that the company may have challenges in efficiently using equity capital to generate shareholder returns. This could deter some investors who prioritize high ROE.

Stock Price Predictions: The average price target has increased by 9.26% to $175.30, with a high estimate of $185.00 and a low estimate of $165.00. These updates from analysts reflect a generally positive sentiment which could contribute to upward pressure on stock prices.

All these elements should be considered by potential investors as they evaluate the company's position and future performance in the market.

Stocks: DGX