New Jersey-based Quest Diagnostics Incorporated (DGX) provides diagnostic testing, information, and services. With a market cap of $17.2 billion, Quest Diagnostics operates through Diagnostic Information Services and Diagnostic Solutions segments. The diagnostics and research giant is expected to release its Q3 earnings before the market opens on Tuesday, Oct. 22.

Ahead of the event, analysts expect Quest Diagnostics to report a profit of $2.27 per share, up 2.3% from $2.22 per share reported in the year-ago quarter. Moreover, the company has surpassed Wall Street’s EPS projections in each of the past four quarters. Its adjusted EPS for the last reported quarter grew 2.2% year over year to $2.35, exceeding the consensus estimates by 1.7%.

For fiscal 2024, analysts expect Quest Diagnostics to report an adjusted EPS of $8.89, up 2.1% from $8.71 in fiscal 2023. In fiscal 2025, its adjusted EPS is estimated to grow 7.8% annually to $9.58.

DGX has gained 10.3% on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 19.5% gains and the Health Care Select Sector SPDR Fund’s (XLV) 11.1% returns during the same time frame.

Despite reporting better-than-expected Q2 earnings results on July 23, shares of Quest Diagnostics plunged 4.3%. Although the company registered growth in non-GAAP adjusted EPS and surpassed the consensus estimates, its GAAP-based EPS saw a marginal decline annually to $2.03 due to a net margin contraction of 50 basis points.

Nevertheless, the company raised its full-year top line as well as EPS guidance for fiscal 2024. Following the initial dip in stock prices, DGX rebounded 2.1% in the subsequent trading session and maintained positive momentum over the next two sessions.

The consensus opinion on DGX stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 16 analysts covering the stock, six recommend a “Strong Buy,” and 10 advise a “Hold” rating.

The mean price target of $159.75 suggests a potential upside of 5% from current price levels.

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.