By 2018, shares had risen to the $100 mark as the boost from the pandemic drove shares to a high of $170 in 2021, followed by some stagnation with shares now trading at $133 per share. A $5 stock in 1999 jumped to $40 in 2002 as shares traded around the $50 mark for years, in fact about a decade. About a fifth of sales are derived from the health systems segment, accompanied by a smaller consumer health & other segment.Ĭontinued growth in the healthcare space and an increased focus on testing should drive long term growth as the company has seen some windfall profits thanks to the pandemic.Įxcept for some smaller items, Quest has steadily grown the business and delivered on shareholder value creation over time. On $8.4 billion in base revenue in 2022, that is excluding the volatile Covid-19 contribution, about 70% of sales are generated in the physicians' office. In fact, Quest serves about half of hospitals and physicians, having served a third of the U.S. By collaborating with many stakeholders in the process and offering a wide range of testing services, the company is a force in its field, employing nearly 50,000 workers in the meantime. The company aims to do so by providing high-quality and affordable diagnostics testing insights and services. Quest Diagnostics has a mission to create a healthier world, one life at the time. The decline in the Covid-19 testing revenues has hurt reported sales growth, but as these sales are no longer existing (in a material form), the business should enjoy easier growth comparables going forward, and potentially a re-rating on the back of that.
The company has seen modest growth, but has pleased investors through continued share buybacks as the business has enjoyed some windfall profits related to Covid-19 testing revenues (and profits) in recent years, which have now officially become non-meaningful. Shares of Quest Diagnostics Incorporated (DGX ) have been trading somewhat rangebound over the last couple of years.
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