Should I Buy Quest Diagnostics (DGX)? Finance YouTuber Analysis

Joseph Hogue gives an honorable mention to Quest Diagnostics, highlighting its position as a leading independent provider of healthcare diagnostics with a duopoly market. The company has grown its dividend by 7.3% annually over five years and recently increased it by 7.6%, offering a relatively safe and stable dividend stock with a 2% yield.

“I like the long-term theme for Quest Diagnostics ticker dgx it's the leading independent provider for healthcare Diagnostics and testing in the United States and and basically with its competitor LabCorp the two have a duopoly market so they can get really good returns without really having to compete against each other falling into that price competition now Quest has grown its dividend by 7.3 percent annually over the past five years and recently upped at 7.6 percent to that 71 cents a share.”

The analyst suggests Quest Diagnostics as a buy, noting its market-beating performance despite expected declines in sales and earnings due to reduced COVID testing. He highlights the company's consistent history of beating expectations and anticipates a surprisingly good fourth quarter driven by increased demand from the 'triple-demic'.

“management has been able to beat those expectations again I think this should have a surprisingly good fourth quarter when it comes to report on February 1st in that same theme Here Laboratory Corporation of America ticker LH controls roughly 20 percent of the independent lab testing in the United States.”

The YouTuber recommends Quest Diagnostics, highlighting its leadership in healthcare information services and significant growth catalysts. The company's 56 billion patient data points represent hidden value for R&D, and the consumer testing market, particularly home testing, is a $2 billion untapped opportunity. Despite expected lower earnings this year as COVID testing wanes, shares trade at 14 times P/E, suggesting upside potential.

“Quest Diagnostics ticker DGX is a leader in healthcare information services and has a lot of catalysts for growth. The 56 billion patient data points though that represents the real hidden value here.”

Hogue suggests Quest Diagnostics (DGX) as a buy, arguing that COVID-19 testing demand will persist due to mutations, despite investor sell-offs. The company booked 40% revenue growth in the most recent quarter and trades at a value-oriented 1.6 times sales. It also pays a 1.75% dividend and has a strong track record of 13.6% annual returns over five years.

“The average analyst target of 146 dollars a share is only about four percent higher from here but the shares pay a 1.75 dividend and have produced a 13.6 annual return over the last five years so i expect this one to keep on growing”