Quest Diagnostics (DGX)

Quest Diagnostics (DGX)


Score:  8/20
MOS: -110%
Share Price:  $110
Sticker Price:  $52

Is DGX (Quest Diagnostics) a good investment?

Quest Diagnostics was founded in 1967 and is based out of Secaucus, NJ.  Quest is a clinical laboratory that operations in the US, Mexico, Puerto Rico, and Brazil.  They specifically offer access to diagnostic testing services for cancer, cardiovascular disease, infectious disease, neurological disorders, and COVID-19.

Quest was the first west coast lab to offer broad-based COVID-19 testing but unfortunately COVID-19 tests don’t exactly have a wide moat.  Many healthcare operations and laboratories have the ability to test COVID-19.  When conducting a simple google search in your area, dozens of testing centers nearby will appear on Google Maps.

Some of Quest’s top competitors include:

Invitae (NVTA)
Score:  5/20
Share Price:  $33
Sticker Price:  $8

Abbott (ABT)
Score:  9/20
Share Price:  $105
Sticker Price:  $11

Thermo Fisher Scientific (TMO)
Score:  9/20
Share Price:  $436
Sticker Price:  $516

Is Quest a good investment?  Overall, Quest and their competitors do not pass the Tykr test.  My advice is to keep your distance.  With a score of 8/20, Quest’s financials show that this stock is too much of a risk.  With a share price of $110 and sticker price of $52, this stock could be on its way down.

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