Quest Diagnostics Incorporated (NYSE:DGX) Relative Strength Index (RSI) is 56.48, with weekly volatility at 1.52% and ATR at 2.75. The DGX stock’s 52-week price range has touched low of $73.02 and a $131.81 high. Intraday shares traded counted 0.98 million, which was 26.63% higher than its 30-day average trading volume of 1.34M. Its shares traded higher over the last trading session, gaining 0.40% on 10/13/20. The shares fell to a low of $115.69 before closing at $117.14. DGX’s previous close was $116.67 while the outstanding shares total 134.00M. The firm has a beta of 1.20, a 12-month trailing P/E ratio of 21.29, and a growth ratio of 1.82.
Investors have identified the Diagnostics & Research company Quest Diagnostics Incorporated as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $15.68 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Quest Diagnostics Incorporated (DGX) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For DGX, the company has in raw cash 988.0 million on their books with 555.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 2380000000 million total, with 1843000000 million as their total liabilities.
DGX were able to record 437.0 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by -204.0 million. In cash movements, the company had a total of 602.0 million as operating cash flow.
Potential earnings growth for Quest Diagnostics Incorporated (DGX)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Quest Diagnostics Incorporated recorded a total of 1.83 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -6.9% coming in sequential stages and their sales for the third quarter increasing by 0.27%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.22 billion trying to sell their products during the last quarter, with the result yielding a gross income of 606.0 million. This allows shareholders to hold on to 134.00M with the revenue now reading 1.36 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.41 cents a share).
Having a look at the company’s valuation, the company is expected to record 6.56 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on DGX sounds very interesting.
Is the stock of DGX attractive?
In related news, SVP, Group Exec. Clin. Fran., Doherty Catherine T. sold 58,392 shares of the company’s stock in a transaction that recorded on Sep 02. The sale was performed at an average price of 110.60, for a total value of 6,458,343. As the sale deal closes, the Executive Vice President & CFO, GUINAN MARK now sold 72,596 shares of the company’s stock, valued at 8,510,585. Also, Director, RING TIMOTHY M sold 11,730 shares of the company’s stock in a deal that was recorded on Jun 08. The shares were price at an average price of 116.60 per share, with a total market value of 1,367,718. Following this completion of acquisition, the Chairman, CEO and President, RUSCKOWSKI STEPHEN H now holds 11,717 shares of the company’s stock, valued at 1,312,433. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
10 out of 18 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on Quest Diagnostics Incorporated. 0 analysts has assigned a Sell rating on the DGX stock. The 12-month mean consensus price target for the company’s shares has been set at $139.44.