Quest Diagnostics Incorporated (DGX) ROA value 6.60% set above the sector median

With current ratio of 1.5 firm has at least twice as many interim assets than short-term liabilities. Share holders earnings for investment in the DGX has been better compared to its peers .

Markets indicate current assets will be sufficient to meet the firms’ debt as and when they are due , and Quest Diagnostics Incorporated has $1.4 of liquid assets available to cover every dollar of current liabilities .

17.17 forward PE is lower than PE 20.62 business might generate higher return in subsequent period , still at current trends analysts expect growth might increase better than expected .

With forward PE of 17.17, company is set for lower earnings per share for the fiscal Quest Diagnostics Incorporated earnings over the coming 12 months suggest a downtrend in growth stock might not be for value investors.

Prices of company are trading above trend 9.87% , though company is near 52w low, it does not mean the prices have found its low . Also does not make the risk-reward ratio better.

We believe prices cannot be sustained with out substantial growth . The Healthcare sector is trading at a PEG of 2.66 when compared with Quest Diagnostics Incorporated PEG 2.93 shows tremendous value potential.

With 5Ys earnings to price estimate 7.04% higher than P /E 20.62 markets expect future price increases are high and further might have less of an bullish effect on the price growth .

From the company graph RSI is moving over the horizontal 66.41 reference level indicating a neutral trade , however thought stock are yet to confirm any pattern , occurrence of potentially bullish trend can indicate resumption of the uptrend .

As a growth stock , firm matches the mold of a book value of 2.83. Company’s outstanding shares currently at $13561.63 M , further increased investors activity has helped in better liquidity for Quest Diagnostics Incorporated .

Company is moving in its key support 200 Day MA region at -2.96% and below its support line, but we are yet to see a confirmation trend. Thought not desirable , since the firm is in distinct growth stage , de-grow in EPS of -7.10% may be short term an issue ..

Company beta of 0.6 offers insulation from index volatility , however due to possibility of a higher rate of return at 0.6% company also comes with more risk. Considering normalized debt and assets , Quest Diagnostics Incorporated adjusted ROA is 6.60% this year .

With higher average PE , analysts would say the company are set to fall . And despite the stellar performance in the Healthcare sector over the past year , the stock price still look undervalued .

Health Care sector is staging a rebound at 8470.28 points, comparatively to the broader index, has seen a change of 1.10 Supported by a up-down ratio of 2.16x, total MFI closed at $7574.14mn, however sector has seen a steady recovery backed by $7564.55mn in block trades of which $2541.08mn saw bearish sentiment, while $10105.63 were positive flow .

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