Quest Diagnostics Incorporated (DGX) Hits Fresh High: Is There Still Room to Run?

Have you been paying attention to shares of Quest Diagnostics (DGX)? Shares have been on the move with the stock up 11.5% over the past month. The stock hit a new 52-week high of $216.87 in the previous session. Quest Diagnostics has gained 24.5% since the start of the year compared to the 1.1% move for the Zacks Medical sector and the 17.8% return for the Zacks Medical - Outpatient and Home Healthcare industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 21, 2026, Quest Diagnostics reported EPS of $2.5 versus consensus estimate of $2.37 while it beat the consensus revenue estimate by 3.14%.For the current fiscal year, Quest Diagnostics is expected to post earnings of $10.72 per share on $11.84 in revenues. This represents a 8.83% change in EPS on a 7.29% change in revenues. For the next fiscal year, the company is expected to earn $11.56 per share on $12.39 in revenues. This represents a year-over-year change of 7.84% and 4.64%, respectively.Valuation MetricsWhile Quest Diagnostics has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Quest Diagnostics has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 20.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.1X. On a trailing cash flow basis, the stock currently trades at 14.2X versus its peer group's average of 15X. Additionally, the stock has a PEG ratio of 2.57. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Quest Diagnostics currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Quest Diagnostics meets the list of requirements. Thus, it seems as though Quest Diagnostics shares could have potential in the weeks and months to come.How Does DGX Stack Up to the Competition?Shares of DGX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Aveanna Healthcare Holdings Inc. (AVAH). AVAH has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.Earnings were strong last quarter. Aveanna Healthcare Holdings Inc. beat our consensus estimate by 38.46%, and for the current fiscal year, AVAH is expected to post earnings of $0.70 per share on revenue of $2.65 billion.Shares of Aveanna Healthcare Holdings Inc. have gained 30.7% over the past month, and currently trade at a forward P/E of 12.6X and a P/CF of 12.85X.The Medical - Outpatient and Home Healthcare industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DGX and AVAH, even beyond their own solid fundamental situation.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks