Quest Diagnostics Outlook - Technical Weakness Overshadows Mixed Fundamentals

1. Market Snapshot

Takeaway: Quest Diagnostics (DGX) shows mixed signals in fundamentals but faces strong technical headwinds with an internal diagnostic score of 3.41, suggesting caution for investors.

2. News Highlights

Recent news around the healthcare sector includes:

• Stanford Health Care’s $424.9M bond sale highlights growing capital investments in healthcare infrastructure, potentially benefiting companies like DGX in the long term.
• HHS's controversial letter on transgender healthcare protocols could indirectly impact Quest Diagnostics by reshaping treatment guidelines and diagnostic needs in the sector.
• AsyncHealth's AI-driven mental health platform underlines the increasing use of technology in healthcare, a trend that may either compete with or complement Quest’s traditional diagnostic services.

3. Analyst Views & Fundamentals

Analysts remain neutral on DGX. The simple average rating is 3.00, while the performance-weighted rating is 3.62. The ratings are somewhat consistent—only one analyst active in the last 20 days, with a 75% historical win rate.

This neutral stance aligns with the recent price rise of 0.36%, but diverges from the weaker technical signal. The fundamental model scores give DGX a 4.49 internal diagnostic score, indicating decent but not strong fundamentals.

Key fundamental values include:

• PE ratio: 84.13 (internal score: 3)
• Basic earnings per share growth: 18.21% (internal score: 2)
• Diluted earnings per share growth: 17.60% (internal score: 3)
• Net profit attributable to parent company shareholders / Net profit: 94.54% (internal score: 2)
• Shareholders’ equity / Total liabilities: 0.84% (internal score: 3)

4. Money-Flow Trends

Large investors are pulling back while smaller investors are showing positive flow. The block inflow ratio is 47.69%, signaling a net outflow among major institutional players.

Meanwhile, the small investor inflow ratio is 50.32%, showing retail interest is still somewhat engaged. The fund flow score is 7.82 (internal diagnostic score), indicating decent money flow dynamics overall, but with a negative trend in large and extra-large flows.

5. Key Technical Signals

The technical picture for DGX is bearish. The internal diagnostic score is 3.41, and key signals are as follows:

• WR Overbought (score: 6.27) – a neutral signal with historical return of -4.00%
• MACD Death Cross (score: 2.97) – bearish bias with historical return of 5.50%
• Marubozu White (score: 1.00) – a strong bearish signal with a historical return of -30.00%

Recent chart patterns from September 5-11, 2025 show Marubozu White and WR Overbought signs, which suggest a weak trend with unclear momentum. There are 2 bearish indicators and 0 bullish ones, reinforcing the cautionary stance.

6. Conclusion

With a technical score of 3.41 and mixed fundamentals, Quest Diagnostics remains a cautious play. While retail investors are showing interest and fundamentals are decent, the technical signals are bearish. Investors should wait for a clearer trend or a pullback before making a move, particularly if they're watching for improved technical alignment with fundamentals.