In Consumer Health, the company generated solid base business revenue growth from the consumer-initiated testing channel in the third quarter.Ī Strategic Imperative to Drive Operational Excellence: In terms of driving operational excellence, the company focuses on improving its operational quality, service and costs, thereby driving productivity gains. Within Hospital labs, progress in terms of partnerships with Northern Light Health, Lee Health and Tower Health is particularly encouraging in the Professional Lab Services (“PLS”) business. Within the segment, the QuestAD-Detect Alzheimer's blood test is adding to Neurology’s growth trends, fortifying the company’s position in the rapidly evolving Alzheimer’s landscape.Īcross Physician Lab Services, a large number of strategic partnerships with health plans involve value-based arrangements, which are leading to faster growth and share gains than traditional relationships. Strong Potential of Advanced Diagnostics: A key pillar of the company’s strategy is to support faster growth across all customer segments through highly specialized advanced diagnostics. The company’s earnings surpassed estimates in all the trailing four quarters, delivering an average surprise of 3.07%.

Quest Diagnostics has an earnings yield of 6.42% compared with the industry’s yield of 4.68%. The renowned provider of diagnostic information services has a market capitalization of $15.26 billion. In the past year, this Zacks Rank #3 (Hold) stock has decreased 11.4% against the industry’s 1.1% growth and 12.1% rise of the S&P 500 composite. However, the company’s solvency level and competitive disadvantages remain a concern. Continuous progress in terms of operational and productivity improvements is highly encouraging. The company is enabling growth across its customer channels through advanced diagnostics, with an intense focus on faster-growing clinical areas, including molecular genomics and oncology. DGX is likely to grow in the coming quarters, backed by its robust strength in the base business.

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