Quest Diagnostics (NYSE:DGX) GF Value Rank

: 6 (As of Today)

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Quest Diagnostics has the GF Value Rank of 6.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison

For the Diagnostics & Research subindustry, Quest Diagnostics's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

Quest Diagnostics GF Value Rank Distribution

For the Medical Diagnostics & Research industry and Healthcare sector, Quest Diagnostics's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Quest Diagnostics's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.

Quest Diagnostics GF Value Rank Related Terms

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Quest Diagnostics (NYSE:DGX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Diagnostics & Research » Quest Diagnostics Inc (NYSE:DGX) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

QDI:Germany

Address

500 Plaza Drive, Secaucus, NJ, USA, 07094

Website

https://www.questdiagnostics.com

Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the U.S. The company generates over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of roughly 2,300 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a much smaller diagnostic solutions segment that provides clinical trials testing, risk assessment services, and information technology solutions.

Executives

Patrick Plewman	officer: SVP for Diagnostic Services	500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS INC, SECAUCUS NJ 07094
Mark E Delaney	officer: SVP & Chief Commercial Officer	500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS INC, SECAUCUS NJ 07094
Karthik Kuppusamy	officer: SVP, Clinical Solutions	500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS INC, SECAUCUS NJ 07094
Mark A Gardner	officer: SVP of Molecular Gen & Oncol	500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS INC, SECAUCUS NJ 07094
Samer Abdul Samad	officer: Executive Vice President & CFO	5200 ILLUMINA WAY, SAN DIEGO CA 92122
Tracey Doi	director	C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
Wright Iii Lassiter	director	500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS, SECAUCUS NJ 07094
Manuel O. Mendez	officer: SVP & Chief Commercial Officer	500 PLAZA DRIVE, SECAUCUS NJ 07094
Michael J Deppe	officer: VP, Corp. Controller & CAO	500 PLAZA DRIVE, C/O QUEST DIAGNOSTICS, SECAUCUS NJ 07094
Denise M Morrison	director	METLIFE, 200 PARK AVENUE, NEW YORK NY 10166
Helen Torley	director	C/O ONYX PHARMACEUTICALS, INC., 249 EAST GRAND AVE., SOUTH SAN FRANCISCO CA 94080
Manner Carrie Eglinton	officer: SVP, Advanced Diagnostics	C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
Robert A Klug	officer: VP, Corporate Controller	C/O QUEST DIAGNOSTICS, 500 PLAZA DRIVE, SECAUCUS NJ 07094
Timothy M Ring	director	C/O C.R BARD INC, 730 CENTRAL AVE, MURRAY HILL NJ 07974
Timothy L Main	director	10560 DR. MARTIN LUTHER KING JR. ST. N., ST. PETERSBURG FL 33716