Quest Diagnostics Stock Drops 2.51% Amid Analyst Upgrade

Quest Diagnostics Incorporated (DGX) shares fell 2.51% intraday, marking the lowest level since April 2025, with a 1.96% decline over the past two days, totaling a 3.19% drop in the last two trading sessions.

The strategy of purchasing Quest Diagnostics (DGX) shares after they reached a recent low and holding for one week yielded solid returns over the past five years. This approach capitalized on the stock's performance following short-term lows, which consistently led to positive outcomes.

Average Annual Return: The annualized return on this strategy was approximately 318.82%, which significantly outperformed the market by 304.48%. This indicates that buying DGX after a recent low and holding for one week led to substantial long-term gains.

Cumulative Returns: The cumulative return for a $1,000 investment in DGX increased to $1,448,542.88 over five years. This is a stark illustration of the effectiveness of this strategy, showing how it transformed a modest initial investment into a substantial fortune.

Performance Context: DGX's performance over the last six months, with a 12.9% return, surpassed the S&P 500 by 7.7%. Despite some fluctuations, the stock's consistent rise post-low supported the strategy's success.

Technical Analysis Indicators: DGX exhibited strong technical signals, with four buy signals and only five sell signals. This imbalance suggested a bullish trend, which the strategy likely capitalized on.

Market Sentiment: The launch of a new FDA-approved Alzheimer's test by Quest Diagnostics further bolstered investor confidence, potentially influencing the stock's positive performance post-low.

In conclusion, the strategy of purchasing DGX shares after they reached a recent low and holding for one week was highly effective, driven by the stock's strong performance, technical indicators, and positive market sentiment. This approach remains a viable strategy for investors looking to capitalize on the potential of DGX in the coming years.

Quest Diagnostics Incorporated's stock has seen a recent upgrade from "Sell Candidate" to "Hold/Accumulate" as of July 9, 2025. This shift in analyst sentiment could be influencing investor behavior, potentially stabilizing or even boosting the stock price in the near term.

In addition to the upgrade, Quest Diagnostics is set to introduce an FDA-cleared Fujirebio blood test for clinical and research use this summer. This new offering is part of their AD-Detect™ product line and is expected to broaden their market reach and potentially increase revenue streams, which could positively impact the company's stock performance.

Furthermore, as of June 20, 2025, Quest Diagnostics stock was identified as trading near a buy zone, with options trading strategies like the Long Call Butterfly being recommended. This suggests that there is market interest and potential for price movement, which could contribute to the stock's volatility and investor sentiment.