Quest Diagnostics Inc. (DGX, Financial)
As a leading provider of diagnostic information services, Quest Diagnostics has been vital in testing for COVID-19. At the start of the crisis, testing was limited and volume for Quest fell as much as 50% due to stay-at-home orders and the overwhelmed healthcare system, but the last few months have marked an uptick in testing. At the peak of the crisis, Quest accounted for nearly 50% of all COVID-19 testing across the US, and by June Quest was processing as many as 100,000 active infection tests and 200,000 antibody tests per day. As the US continues to increase testing for the virus, Quest management is confident that their scale will offer significant cost advantages compared to hospital-based labs and smaller regional players. The company’s nationwide footprint and extensive network of patient service centers would be difficult for another company to replicate from scratch.
From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management summer 2020 market commentary.
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