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Quest Diagnostics (DGX) Raised Guidance, Has The Rally Already Priced It In?

Simply Wall St·10/30/2026 12:44:09
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Quest Diagnostics (DGX) just paired a raised 2026 earnings outlook with strong third quarter results, including higher sales and earnings per share, while also announcing a new at-home HPV testing collaboration with Waters Corporation.

Quest Diagnostics shares have responded to this run of good news, with the stock posting a 1-day share price return of 2.97% and a 30-day share price return of 9.03%. This has contributed to a 45.53% year to date share price gain and a 46.33% 1-year total shareholder return that signals building momentum over both shorter and longer horizons.

Scan how Quest Diagnostics stacks up against a curated group of peers by reviewing our hand-picked 30 resilient stocks with low risk scores that have historically shown more resilient profiles in tougher markets.

Quest Diagnostics has already priced in a lot of optimism after the recent rally and guidance hike. The real issue now is whether that move has run ahead of the fundamentals or still leaves room on the table.

Most Popular Narrative: 30% Undervalued

Quest Diagnostics is trading at a last close of $252.92 against a widely followed fair value view of about $253.73, so the current price essentially lines up with that narrative while still reflecting an undervaluation signal from Simply Wall St's cash flow work.

The current valuation, along with the view that Quest Diagnostics is fairly valued but with a positive outlook, suggests that the share price already reflects meaningful contributions from advanced diagnostics, consumer health, and Co-Lab partnerships, with some remaining potential if these areas perform as anticipated.

See why 20 investors see Quest Diagnostics as 0% undervalued.

Result: Fair Value of $253.73 (UNDERVALUED)

Still, the Quest Diagnostics story can be knocked off course if Medicare reimbursement cuts bite harder than expected, or if wage and automation costs outrun planned savings.

Find out about the key risks to this Quest Diagnostics narrative.

Next Steps

Mixed signals on Quest Diagnostics so far. If you think the real story sits in the details, review the data yourself and weigh the 4 key rewards and 1 important warning sign.

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