Quest Diagnostics Stock: Is Wall Street Bullish or Bearish?

Quest Diagnostics Stock: Is Wall Street Bullish or Bearish?

Tue, August 25, 2026 at 6:52 PM GMT+3 2 min read

With a market cap of $26.9 billion, Quest Diagnostics Incorporated (DGX) is a leading provider of diagnostic testing services in the United States and internationally. The company delivers a wide range of routine and advanced diagnostic information services through its brands and network of laboratories, serving healthcare providers, insurers, employers, and government institutions.

Shares of the Secaucus, New Jersey-based company have outperformed the broader market over the past 52 weeks. DGX stock has returned 36.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 19.1%. Moreover, the stock has soared 40.4% on a YTD basis, compared to SPX's 12% increase.

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Looking closer, shares of the medical laboratory operator have also outpaced the State Street Health Care Select Sector SPDR ETF's (XLV) 28.7% surge over the past 52 weeks.

Quest Diagnostics shares climbed 8.6% on Jul. 23 after Q2 2026 results significantly exceeded expectations, with revenue rising to $3.04 billion and adjusted EPS reaching $3.12, driven by strong routine diagnostic testing demand. Diagnostic Information Services revenue increased 10.3% to $2.98 billion, supported by a 13.1% rise in requisition volumes and 13% organic volume growth, including advanced diagnostics such as Alzheimer's blood tests, cardiometabolic testing and liver-fibrosis testing, which also posted double-digit growth.

The company also raised its 2026 revenue guidance to $11.95 billion - $12.05 billion and adjusted EPS guidance to $11.05 - $11.25, both above analyst expectations.

For the fiscal year ending in December 2026, analysts expect Quest Diagnostics' adjusted EPS to grow 13.2% year-over-year to $11.15. The company's earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.

Among the 17 analysts covering the stock, the consensus rating is a "Moderate Buy." That's based on nine "Strong Buy" ratings and eight "Holds."

This configuration has remained unchanged over the past three months.

On Jul. 29, Argus raised Quest Diagnostics' price target to $260 and maintained a "Buy" rating.

The mean price target of $249.38 represents a 2.4% premium to DGX's current price levels. The Street-high price target of $265 suggests a 8.8% potential upside.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com