AI is about to change healthcare. These 38 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
To own Quest Diagnostics, you need to believe it can keep growing higher value testing while managing reimbursement pressure and rising costs. The latest kidney, biological age and Alzheimer’s test expansions support the advanced and preventive testing story, but do not materially change the near term focus on pricing risk from PAMA and ongoing industry price pressure.
The new AD-Detect Alzheimer’s blood tests look most relevant here, because they directly expand Quest’s footprint in complex, higher value diagnostics that underpin the thesis of richer test mix and more resilient revenue streams.
Yet investors should also be aware that as Quest leans further into these partnerships and advanced tests, its exposure to payer pushback and reimbursement pressure...
Read the full narrative on Quest Diagnostics (it's free!)
Quest Diagnostics' narrative projects $13.3 billion revenue and $1.5 billion earnings by 2029. This requires 4.8% yearly revenue growth and about a $0.4 billion earnings increase from $1.1 billion today.
Uncover how Quest Diagnostics' forecasts yield a $245.87 fair value, in line with its current price.
Two fair value estimates from the Simply Wall St Community span a wide range, from about US$245.87 up to US$347.62 per share. Against that backdrop, the push into advanced Alzheimer’s and kidney testing highlights how differing views on test mix, pricing headwinds and long term earnings power can lead to very different expectations for Quest’s performance.
Explore 2 other fair value estimates on Quest Diagnostics - why the stock might be worth just $245.87!
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
Our daily scans reveal stocks with breakout potential. Don't miss this chance:
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com