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Is this Large Market Cap Stock target price reasonable for Quest Diagnostics Inc. (NYSE:DGX)?

The company in question is, Quest Diagnostics Inc. (NYSE:DGX) currently with a stock price of 81.28 (-1.20% today). The market cap for Quest Diagnostics Inc. is 11890.48, and is in the sector Healthcare, and Medical Laboratories & Research industry. The target price for Quest Diagnostics Inc. is 82.65. Currently Quest Diagnostics Inc. is trading with a P/E of 14.39, and a forward P/E of 15.1. Average volume for Quest Diagnostics Inc. is 1234.95 and so far today it is 186694.

Performance in the last year for Quest Diagnostics Inc. has been 28.19%. For EPS growth, Quest Diagnostics Inc. has seen a growth of 28.60%, and is looking to grow in the next year to 6.68%. More long term stats show that EPS growth has been 4.10% over the last five years and could be 7.82% for the next five years. Quest Diagnostics Inc. has seen sales growth quarter over quarter at -1.00%, with EPS growth quarter over quarter at 68.70%. The 20-day simple moving average is -3.22%, with the 200-day simple moving average coming to 9.82%.

Since the IPO date for Quest Diagnostics Inc. on the 12/26/1996, Quest Diagnostics Inc. has seen performance year to date to be 17.52%. With Quest Diagnostics Inc. trading at 81.28, the dividend yield is 1.94%, and the EPS is 5.72.

So could Quest Diagnostics Inc., be undervalued? Well as said before P/E is 14.39. The PEG is 1.84, P/S is 1.59 and the P/B is at 2.54. The P/cash is 42.02, with P/free cash flow at 33.03.

Quest Diagnostics Inc. ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 1.3. This is with long term debt/equity at 0.85, and total debt/equity at 0.85.

In terms of margins, Quest Diagnostics Inc. has a gross margin of 38.70%, an operating margin of 20.70% and a profit margin of 11.00%.Payout ratio for Quest Diagnostics Inc. is 27.10%. Return on assets come to 8.20% with return on investment coming to 12.30%.

Insider ownership for Quest Diagnostics Inc., is at 0.20% and institutional ownership comes to 96.90%. Outstanding shares are at 144.53. While shares float is 138.49. The float short is currently 4.68%, and short ratio is 5.24.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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