Quest Diagnostics (DGX) Soars 1.60% to Record High on Strong Q1 Earnings

Quest Diagnostics (DGX) surged to a record high today, with an intraday gain of 1.60%.

The strategy of buying DGX shares after they reached a recent high and holding for 1 week showed underperformance. The share price of DGX reached an all-time high of $180.11 on June 13, 2025. Over the past five years, the stock experienced a 48% increase, which is lower than the market return. Additionally, the compound earnings per share (EPS) growth over the same period was 6.8% per year, which is close to the 8% average annual increase in the share price. This indicates that the share price movements have been driven by investor sentiment rather than underlying business performance.

Recent Performance: The stock reached an all-time high of $180.11, reflecting a strong market performance over the past year, with a total return of 31.86% and a low price volatility.

Historical Performance: Over the past five years, the stock price increased by 48%, which is lower than the market return. The compound EPS growth was 6.8% per year, close to the average annual increase in the share price.

Market Sentiment: The share price movements over the past five years have been influenced by investor sentiment, with the price reacting to EPS growth.

Strategic Considerations: The recent high point may not be indicative of future performance. The partnership with MD Anderson to develop a Multi-cancer Stratification Test could be a positive catalyst for the stock.

In conclusion, while the recent high point may be attractive, the historical performance and market sentiment suggest that holding DGX shares for 1 week after reaching a recent high may not be the most optimal strategy. Investors should consider the long-term potential of the company's growth and market positioning.

Quest Diagnostics reported its Q1 2025 earnings, which exceeded market expectations with an adjusted earnings per share (EPS) of $2.21. This positive financial result likely contributed to the stock reaching record highs.

The stock hitting a new 52-week high suggests investor confidence, possibly influenced by the company's robust financial performance and strategic positioning.

A Jefferies analyst maintained a Buy rating on Quest Diagnostics and set a price target of $195.00, indicating positive market sentiment and potential for further growth.