Why Quest Diagnostics (DGX) is a Top Momentum Stock for the Long-Term

Zacks
02-10

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

Quest Diagnostics (DGX)

Headquartered in Secaucus, New Jersey, Quest Diagnostics Inc. provides a broad range of diagnostic information services to patients, clinicians and healthcare organizations. The company provide services to Independent Delivery Networks (IDN) throughout the United States, through its Professional Lab Services (PLS) offerings, which allow them to build and execute their laboratory strategy, improve quality, reduce healthcare costs and focus on core competencies. The company is a key provider of reference testing for approximately half of the hospitals in the United States.

DGX sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of B, and has a VGM Score of A. The stock is down 0.3% and up 7.2% over the past one-week and four-week period, respectively, and Quest Diagnostics has gained 28.3% in the last one-year period as well. Additionally, an average of 1,032,054.50 shares were traded over the last 20 trading sessions.

A company's earnings performance is important for momentum investors as well. For fiscal 2025, four analysts revised their earnings estimate higher in the last 60 days for DGX, while the Zacks Consensus Estimate has increased $0 to $9.70 per share. DGX also boasts an average earnings surprise of 3.8%.

DGX should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.

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