Trade-Ideas LLC identified

Quest Diagnostics

(

DGX

) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Quest Diagnostics as such a stock due to the following factors:

  • DGX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $68.6 million.
  • DGX is down 4.6% today from today's close.

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More details on DGX:

Quest Diagnostics Incorporated provides diagnostic testing information services in the United States and internationally. The stock currently has a dividend yield of 2.4%. DGX has a PE ratio of 13. Currently there is 1 analyst that rates Quest Diagnostics a buy, 2 analysts rate it a sell, and 15 rate it a hold.

The average volume for Quest Diagnostics has been 1.1 million shares per day over the past 30 days. Quest has a market cap of $9.3 billion and is part of the health care sector and health services industry. The stock has a beta of 0.41 and a short float of 6.1% with 7.13 days to cover. Shares are down 7.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Quest Diagnostics as a

buy

. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity, expanding profit margins, impressive record of earnings per share growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 165.1% when compared to the same quarter one year prior, rising from $129.00 million to $342.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Providers & Services industry and the overall market, QUEST DIAGNOSTICS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • 42.29% is the gross profit margin for QUEST DIAGNOSTICS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.19% significantly outperformed against the industry average.
  • The debt-to-equity ratio is somewhat low, currently at 0.81, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.92 is somewhat weak and could be cause for future problems.
  • QUEST DIAGNOSTICS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, QUEST DIAGNOSTICS INC reported lower earnings of $3.77 versus $5.34 in the prior year. This year, the market expects an improvement in earnings ($4.77 versus $3.77).

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