La cadena de opciones muestra datos clave de las opciones de acciones de Quest Diagnostics a varios precios de ejercicio y fechas de vencimiento. Los operadores utilizan esta información para analizar posibles operaciones y evaluar el sentimiento del mercado para Quest Diagnostics..

Quest Diagnostics (NYSE:DGX) Bolsa, Cadena de Opciones

Quest Diagnostics

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.

Quest Diagnostics Incorporated Common Stock

Quest Diagnostics Inc

Quest Diagnostics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGX#NYSE">DGX</a>) will release its quarterly earnings report on Tuesday, 2024-10-22. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Quest Diagnostics to report an earnings per share (EPS) of $2.27.
The announcement from Quest Diagnostics is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
<h3>Historical Earnings Performance</h3>
During the last quarter, the company reported an EPS beat by $0.01, leading to a 2.09% increase in the share price on the subsequent day.
Here's a look at Quest Diagnostics's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
<th>Q3 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>2.34</td>
<td>1.85</td>
<td>2.11</td>
<td>2.19</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>2.35</td>
<td>2.04</td>
<td>2.15</td>
<td>2.22</td>
</tr>
<tr>
<td>Price Change %</td>
<td>2.0%</td>
<td>1.0%</td>
<td>-2.0%</td>
<td>2.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1729537246_0.png" alt="eps graph" />
<h3>Performance of Quest Diagnostics Shares</h3>
Shares of Quest Diagnostics were trading at $149.65 as of October 18. Over the last 52-week period, shares are up 19.88%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release. 
<h3>Analyst Views on Quest Diagnostics</h3>
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Quest Diagnostics.
The consensus rating for Quest Diagnostics is Neutral, derived from 5 analyst ratings. An average one-year price target of $157.6 implies a potential 5.31% upside.
<h3>Comparing Ratings with Competitors</h3>
The following analysis focuses on the analyst ratings and average 1-year price targets of Labcorp Holdings, DaVita and R1 RCM, three prominent industry players, providing insights into their relative performance expectations and market positioning.
<ul>
<li>As per analysts' assessments, Labcorp Holdings is favoring an Neutral trajectory, with an average 1-year price target of $256.09, suggesting a potential 71.13% upside.</li>
<li>DaVita is maintaining an Neutral status according to analysts, with an average 1-year price target of $162.0, indicating a potential 8.25% upside.</li>
<li>As per analysts' assessments, R1 RCM is favoring an Neutral trajectory, with an average 1-year price target of $14.3, suggesting a potential 90.44% downside.</li>
</ul>
<h3>Insights: Peer Analysis</h3>
In the peer analysis summary, key metrics for Labcorp Holdings, DaVita and R1 RCM are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

<table>
<thead>
<tr>
<th>Company</th>
<th>Consensus</th>
<th>Revenue Growth</th>
<th>Gross Profit</th>
<th>Return on Equity</th>
</tr>
</thead>
<tbody>
<tr>
<td>Quest Diagnostics</td>
<td>Neutral</td>
<td>2.52%</td>
<td>$804M</td>
<td>3.49%</td>
</tr>
<tr>
<td>Labcorp Holdings</td>
<td>Neutral</td>
<td>6.17%</td>
<td>$926.40M</td>
<td>2.57%</td>
</tr>
<tr>
<td>DaVita</td>
<td>Neutral</td>
<td>6.21%</td>
<td>$1.04B</td>
<td>28.57%</td>
</tr>
<tr>
<td>R1 RCM</td>
<td>Neutral</td>
<td>11.98%</td>
<td>$121.60M</td>
<td>-0.27%</td>
</tr>
</tbody>
</table>

Key Takeaway:
Quest Diagnostics ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. In terms of return on equity, it is also in the middle.
<h3>Get to Know Quest Diagnostics Better</h3>
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.
<h3>Unraveling the Financial Story of Quest Diagnostics</h3>
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: Quest Diagnostics's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 2.52%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: Quest Diagnostics's net margin excels beyond industry benchmarks, reaching 9.51%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Quest Diagnostics's ROE stands out, surpassing industry averages. With an impressive ROE of 3.49%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Quest Diagnostics's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.64% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Quest Diagnostics's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.77.
<a href="https://www.benzinga.com/quote/DGX/earnings">To track all earnings releases for Quest Diagnostics visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Earnings

Earnings Preview: Quest Diagnostics

Quest Diagnostics's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGX#NYSE">DGX</a>) short percent of float has fallen 18.55% since its last report. The company recently reported that it has 1.97 million shares sold short, which is 2.02% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.72 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Quest Diagnostics Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1729516523_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Quest Diagnostics has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Quest Diagnostics's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Quest Diagnostics's peer group average for short interest as a percentage of float is 9.44%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Trading Ideas

Looking Into Quest Diagnostics's Recent Short Interest

First-of-its-kind service empowers discreet and more convenient access to testing and treatment for vaginitis and similar genital tract infections such as chlamydia, gonorrhea, trichomoniasis and Mycoplasma genitalium
Self-collection option&nbsp;available at no extra charge at any of Quest's 2,000 patient service centers with a physician's order or through Quest's consumer-initiated test platform at questhealth.com
SECAUCUS, N.J., Oct. 15, 2024 /PRNewswire/ --&nbsp;Quest Diagnostics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGX#NYSE">DGX</a>), a leader in diagnostic information services, today announced the availability of a new service aimed at increasing convenience and speed of testing and treatment of several common genital tract infections (GTIs). Quest is the first laboratory provider to offer patients experiencing vaginitis and symptoms of similar common GTIs the option to self-collect a swab specimen on a national scale, supporting patient care, the drive for greater patient choice, and empowerment in healthcare.

Biotech

News

General

Quest Diagnostics Introduces Specimen Self-Collection For Common Genital Tract Infection Testing At Nationwide Network Of Patient Service Centers

DaVita, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dva#NYSE">DVA</a>) has witnessed strong momentum year to date, with its shares up 47.3% compared with the&nbsp;industry&#39;s&nbsp;growth of 14.8%. The S&amp;P 500 composite has risen 19.5% in the same period.
DaVita,&nbsp;carrying a Zacks Rank #2 (Buy) at present, is witnessing an upward trend in its stock price, prompted by the company&#39;s business model. The optimism, led by a solid second-quarter 2024 performance and the acquisition of dialysis centers, is expected to contribute further.
DaVita is a leading provider of dialysis services in the United States to patients suffering from chronic kidney failure, also known as end-stage renal disease (ESRD). The company operates kidney dialysis centers and provides related medical services, primarily in dialysis centers and contracted hospitals across the country. Its services include outpatient dialysis services, hospital inpatient dialysis services and ancillary services such as ESRD laboratory services and disease management services.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/39/80935.jpg?v=255633029" />
Image Source: Zacks Investment Research
<h2>Catalysts Driving DaVita&#39;s Growth</h2>
The rally in the company&#39;s share price can be attributed to the strength of its dialysis and related lab services. The optimism led by a solid second-quarter 2024 performance and robust business potential are expected to contribute further.
DaVita is experiencing significant growth driven by its patient-centric care approach, leveraging its kidney care services platform to offer a wide range of treatment models and modalities. The increasing prevalence of value-based partnerships in kidney health enables nephrologists, physicians, and transplant programs to collaborate more effectively, enhancing the understanding of individual patient needs and facilitating improved care coordination and early interventions.
A key element of DaVita&#39;s growth strategy is the acquisition of dialysis centers and related businesses, as evident from the recent extension of its pilot phase for a supply and collaboration agreement with Nuwellis. Upon completion of this phase, which ends on Aug. 31, 2024, DaVita may extend the agreement for the ongoing provision of inpatient and outpatient ultrafiltration services for up to 10 years.
The company&#39;s global market share is also on the rise, with recent agreements to expand operations into Brazil, Colombia, Chile and Ecuador.
In the second quarter of 2024, DaVita reported results that exceeded expectations, showcasing a positive trend in both revenue streams and patient services. The sequential increase in daily United States dialysis treatments and the opening of new centers, along with acquisitions overseas, indicates a strong growth trajectory.
Furthermore, DaVita has raised its earnings projections for fiscal 2024, now forecasting adjusted EPS in the range of $9.25 to $10.05, up from the prior range of $9 to $9.80, which is likely to attract further interest from investors.
<h2>Risk Factor</h2>
DaVita faces a risk of reduced profitability if patients shift from commercial insurance to government programs, as government reimbursement rates are significantly lower. This shift could be triggered by rising unemployment, impacting DaVita&#39;s revenues and profit margins.
<h2>A Look at Estimates</h2>
The Zacks Consensus Estimate for DaVita&#39;s 2024 and 2025 bottom line projects an 18% and 14.4% year-over-year improvement, respectively, to earnings of $9.99 and $11.42 per share.
In the past 30 days, the Zacks Consensus Estimate for the company&#39;s 2024 earnings has remained constant at $9.99 per share.
Revenues for 2024 and 2025 are anticipated to rise 5.4% and 4%, respectively, to $12.8 billion and $13.3 billion on a year-over-year basis.
<div class="chart_embed">
<h3>DaVita Inc. Price</h3>
<img alt="DaVita Inc. Price" src="https://staticx-tuner.zacks.com/images/charts/2b/1728478167.png" style="height:251px; width:544px" title="" />
DaVita Inc. price | DaVita Inc. Quote
</div>
<h2>Other Key Picks</h2>
Some other top-ranked stocks in the broader medical space are Rockwell Medical (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rmti#NASDAQ">RMTI</a>), Quest Diagnostics&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgx#NYSE">DGX</a>)&nbsp;and RadNet (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rdnt#NASDAQ">RDNT</a>). While Rockwell Medical carries a Zacks Rank #1 (Strong Buy), Quest Diagnostics&nbsp;and RadNet carry a Zacks Rank #2 each at present.
Rockwell Medical&nbsp;earnings surpassed estimates in each of the trailing four quarters, with the average being 87.9%.
RMTI&#39;s shares have gained 79.7% compared with the industry&#39;s 10.7% growth year to date.
Quest Diagnostics&nbsp;has an estimated long-term growth rate of 6.8%. DGX&#39;s earnings surpassed estimates in each of the trailing four quarters, with the average being 3.3%.
Quest Diagnostics&nbsp;has gained 7.9% compared with the industry&#39;s 14.9% growth year to date.
RadNet&#39;s&nbsp;earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 98.2%.
RDNT&#39;s shares have gained 93.7% year to date compared with the industry&#39;s&nbsp;14.8% growth.
<a href="https://www.zacks.com/stock/news/2348406/davita-stock-gains-47-3-year-to-date-what-s-behind-the-rally?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2348406">To read this article on Zacks.com click here.</a>

Earnings Beats

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RMTI

DaVita Stock Gains 47.3% Year to Date: What's Behind the Rally?

7 analysts have expressed a variety of opinions on Quest Diagnostics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGX#NYSE">DGX</a>) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $158.71, with a high estimate of $165.00 and a low estimate of $150.00. This current average has increased by 6.4% from the previous average price target of $149.17. 
<img src="https://www.benzinga.com/files/images/story/2024/1728331213_0.png" alt="price target chart" />
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
A clear picture of Quest Diagnostics's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>David Macdonald</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Hold</td>
<td>$165.00</td>
<td>$158.00</td>
</tr>
<tr>
<td>Elizabeth Anderson</td>
<td>Evercore ISI Group</td>
<td>Announces</td>
<td>In-Line</td>
<td>$165.00</td>
<td>-</td>
</tr>
<tr>
<td>Stephanie Davis</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$154.00</td>
<td>$144.00</td>
</tr>
<tr>
<td>David Westenberg</td>
<td>Piper Sandler</td>
<td>Raises</td>
<td>Neutral</td>
<td>$150.00</td>
<td>$145.00</td>
</tr>
<tr>
<td>Eric Coldwell</td>
<td>Baird</td>
<td>Raises</td>
<td>Neutral</td>
<td>$154.00</td>
<td>$153.00</td>
</tr>
<tr>
<td>David Macdonald</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Hold</td>
<td>$158.00</td>
<td>$150.00</td>
</tr>
<tr>
<td>Patrick Donnelly</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$165.00</td>
<td>$145.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Quest Diagnostics. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Quest Diagnostics compared to the broader market.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
Capture valuable insights into Quest Diagnostics's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/DGX/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Quest Diagnostics analyst ratings.</a>
<h2>Discovering Quest Diagnostics: A Closer Look</h2>
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.
<h3>Breaking Down Quest Diagnostics's Financial Performance</h3>
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: Quest Diagnostics displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 2.52%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: Quest Diagnostics's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.51% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Quest Diagnostics's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.49% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Quest Diagnostics's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.64% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.77.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Decoding 7 Analyst Evaluations For Quest Diagnostics

Cardinal Health Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cah#NYSE">CAH</a>) is well-poised for growth, given its acquisition-driven strategy, a diversified product portfolio and a robust pharmaceutical segment. However, inflationary pressure remains a concern.
Shares of this Zacks Rank #3 (Hold) company have risen 11.1% in the year-to-date period against the industry&#39;s 1.7% decline. The S&amp;P 500 Index has gained 20.6% in the same time frame.&nbsp;
CAH, with a market capitalization of $27.09 billion, is a nationwide drug distributor and service provider to pharmacies, healthcare providers and manufacturers. The company has an earnings yield of 6.8% compared with the industry&#39;s 5.3%. It anticipates earnings to improve 9.6% over the next five years.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/ce/80495.jpg?v=1119199146" />
Image Source: Zacks Investment Research
<h2>What&#39;s Driving CAH&#39;s Performance?</h2>
Strength in Pharmaceutical Segment:&nbsp;Investors are upbeat about Cardinal Health&#39;s Medical and Pharmaceutical offerings, which provide the company with a competitive edge in the niche space.
The segment&#39;s products and services comprise pharmaceutical distribution, manufacturer and specialty services, and nuclear and pharmacy services, which are expected to majorly drive the quarters ahead. For the past few quarters, the segment has been acting as a key catalyst when it comes to driving growth.
In the fourth quarter of fiscal 2024, pharmaceutical revenues amounted to $55.6 billion, up 13% on a year-over-year basis. The performance reflects branded pharmaceutical sales growth from Pharmaceutical Distribution and Specialty Solutions customers.
The company expects revenues from its Pharmaceutical segment to decline 4-6% year over year in fiscal 2025. The anticipated decline reflects a $39 billion revenue headwind due to the OptumRx contract expiration in June 2024. Segmental profit is likely to increase 1-3% from the previous guidance of at least 1%.
Long-term Supply Agreements:&nbsp;Cardinal Health is also pursuing growth via joint ventures and long-term supply agreements with several firms, which have likely kept the investors interested. The company entered into a long-term strategic agreement with Henry Schein. Under this deal, Henry Schein purchased Cardinal Health&#39;s medical supplies for physician practices. The collaboration is expected to drive core sales and prove accretive to CAH&#39;s earnings in the long term.
The signing of a 15-year agreement with Bayer Healthcare for the contract manufacturing of Xofigo is significantly positive. In our opinion, this should help CAH leverage its expertise in the nuclear pharmacy industry to expand access to a therapeutic agent and increase the use of radiopharmaceuticals in the United States and Canada.
Strong Q4 Results:&nbsp;Cardinal Health&#39;s impressive fourth-quarter fiscal 2024 results buoy optimism. The company&#39;s robust top-line results and solid performance in the Pharmaceutical segment were encouraging. Per management, the segmental performance was driven by brand and specialty pharmaceutical sales growth from existing customers.
Gross profit increased 5% year over year, driven by segmental growth.
<h2>Notable Developments</h2>
Last month, CAH announced an agreement to acquire Integrated Oncology Network (&quot;ION&quot;) for $1.115 billion in cash. ION will enhance CAH&#39;s oncology strategy, adding value for providers and patients. The partnership aims to equip community practices with advanced tools and technology, along with expertise from Specialty Networks&#39; PPS Analytics and SoNaR technology, enabling the company to deliver high-quality, patient-centered care close to home, ultimately improving patient outcomes and strengthening CAH&#39;s leadership in healthcare.
Cardinal Health signed a distribution agreement with Australia-based Telix to become the commercial radiopharmaceutical distributor to supply finished unit doses of Telix&#39;s PET agent, Zircaix, for the imaging of kidney cancer in the United States, subject to regulatory approval.
In August, Cardinal Health announced the opening of a new distribution center in Greenville, SC. The distribution center is dedicated to the company&#39;s at-Home Solutions business, which is also expected to add roughly 200 jobs to the region over time. The opening of the new distribution center is likely to provide a boost to CAH&#39;s at-Home Solutions business and generate additional revenues to support the growing market for at-home solutions.
<h2>What&#39;s Weighing on the Stock?</h2>
Cardinal Health faces the risk of losing considerable business in case of loss of a major customer, which, in turn, can severely impair its future revenues. In this regard, post the establishment of a generic sourcing joint venture with CVS Caremark in 2014, Cardinal Health largely depends on the former for more than 20% of its revenues.
Collectively, five of Cardinal Health&#39;s main customers, including CVS, accounted for as much as 40% of its revenues. Meanwhile, the company&#39;s pharmaceutical distribution contracts with OptumRx ended in June 2024. These represented 17% of total revenues in fiscal 2023. The non-renewal of the contracts is likely to adversely impact CAH&#39;s sales in fiscal 2025.
In July, the FDA issued a warning for Cardinal Health&#39;s Presource kit plastic syringe makers, Jiangsu Shenli Medical Production Co. Ltd and Jiangsu China, who have been facing FDA investigation. Recent inspections have unveiled multiple quality system violations, leading to warning letters and import alerts. CAH has recalled the affected products to ensure patient safety and compliance with the FDA regulations.
<div class="chart_embed">
<h3>Cardinal Health, Inc. Price</h3>
<img alt="Cardinal Health, Inc. Price" src="https://staticx-tuner.zacks.com/images/charts/e8/1728295731.png" style="height:251px; width:583px" title="" />
Cardinal Health, Inc. price | Cardinal Health, Inc. Quote
</div>
<h2>Estimate Trend</h2>
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $215.84 billion, indicating a 4.9% decline from the previous year&#39;s level.
The Zacks Consensus Estimate for adjusted earnings per share is pinned at $7.61, indicating a 1.1% increase from the year-ago reported numbers. The consensus estimate for adjusted EPS has improved 1 cent over the past 30 days.
<h2>Stocks to Consider</h2>
Some better-ranked stocks in the broader medical space are&nbsp;Universal Health Service&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uhs#NYSE">UHS</a>),&nbsp;Quest Diagnostics&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgx#NYSE">DGX</a>) and&nbsp;Baxter International&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bax#NYSE">BAX</a>), each carrying a Zacks Rank #2 (Buy) at present.
Universal Health Service has an estimated long-term growth rate of 19%. UHS&#39; earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 14.58%.
Universal Health Service has gained 17.9% compared with the&nbsp;industry&#39;s&nbsp;19.8% growth in the past six months.
Quest Diagnostics has an estimated long-term growth rate of 6.2%. DGX&#39;s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics&#39; shares have risen 14.3% in the past six months compared with the&nbsp;industry&#39;s&nbsp;8% growth.
Baxter&#39;s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.74%.
BAX&#39;s shares have lost 17.9% in the past six months against the&nbsp;industry&#39;s&nbsp;5.8% growth.
<a href="https://www.zacks.com/stock/news/2346905/reasons-to-retain-cardinal-health-stock-in-your-portfolio-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2346905">To read this article on Zacks.com click here.</a>

Guidance

Offerings

Contracts

Management

Reasons to Retain Cardinal Health Stock in Your Portfolio Now

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-stock-ratings">analyst ratings page</a>.
<ul>
<li>Evercore ISI Group raised the price target for Air Products and Chemicals, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APD#NYSE">APD</a>) from $305 to $365. Evercore ISI Group analyst Stephen Richardson upgraded the stock from In-Line to Outperform. Air Products shares fell 0.1% to close at $285.50 on Friday. <a href="https://www.benzinga.com/quote/apd/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Truist Securities raised the price target for Quest Diagnostics Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGX#NYSE">DGX</a>) from $158 to $165. Truist Securities analyst David Macdonald maintained a Hold rating. Quest Diagnostics shares fell 0.4% to close at $150.79 on Friday. <a href="https://www.benzinga.com/quote/DGX/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>BMO Capital raised The Chemours Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CC#NYSE">CC</a>) price target from $30 to $32. BMO Capital analyst John McNulty maintained an Outperform rating. Chemours shares gained 1.8% to close at $19.57 on Friday. <a href="https://www.benzinga.com/quote/CC/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Piper Sandler cut Domino&#8217;s Pizza, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NYSE">DPZ</a>) price target from $436 to $429. Piper Sandler analyst Brian Mullan maintained a Neutral rating. Domino&#8217;s shares gained 1.1% to close at $425.31 on Friday. <a href="https://www.benzinga.com/quote/DPZ/analyst-ratings">See how other analysts view this stock.</a></li>
<li>B of A Securities slashed Constellation Brands, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STZ#NYSE">STZ</a>) price target from $300 to $255. B of A Securities analyst Bryan Spillane downgraded the stock from Buy to Neutral. Constellation shares gained 1.2% to close at $246.67 on Friday. <a href="https://www.benzinga.com/quote/STZ/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Bernstein cut the price target for The Hershey Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>) from $230 to $205. Bernstein analyst Alexia Howard downgraded the stock from Outperform to Market Perform. Hershey rose 0.5% to close at $191.84 on Friday. <a href="https://www.benzinga.com/quote/HSY/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Needham raised Payoneer Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PAYO#NASDAQ">PAYO</a>) price target from $9 to $10. Needham analyst Mayank Tandon maintained a Buy rating. Payoneer Global shares gained 0.5% to close at $7.71 on Friday. <a href="https://www.benzinga.com/quote/PAYO/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>HC Wainwright &amp; Co. raised the price target for BioNTech SE (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BNTX#NASDAQ">BNTX</a>) from $113 to $150. HC Wainwright &amp; Co. analyst Robert Burns maintained a Buy rating. BioNTech shares gained 2.4% to close at $122.68 on Friday. <a href="https://www.benzinga.com/quote/BNTX/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Macquarie raised PDD Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) price target from $126 to $224. Macquarie analyst Ellie Jiang upgraded the stock from Neutral to Outperform. PDD shares gained 1.1% to close at $154.27 on Friday. <a href="https://www.benzinga.com/quote/PDD/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Truist Securities boosted Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>) price target from $88 to $99. Truist Securities analyst Youssef Squali maintained a Buy rating. Uber shares gained 1.8% to close at $74.28 on Friday. <a href="https://www.benzinga.com/quote/UBER/analyst-ratings">See how other analysts view this stock</a>.</li>
</ul>
Considering buying UBER stock? Here&#8217;s what analysts think: 
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="512" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07090121/image-37-1024x512.png" alt="" class="wp-image-583441" style="width:612px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07090121/image-37-1024x512.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07090121/image-37-300x150.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07090121/image-37-768x384.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07090121/image-37.png 1342w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
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UBER

Uber To Rally Over 33%? Here Are 10 Top Analyst Forecasts For Monday

Truist Securities analyst David Macdonald maintains Quest Diagnostics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGX#NYSE">DGX</a>) with a Hold and raises the price target from $158 to $165.

Truist Securities Maintains Hold on Quest Diagnostics, Raises Price Target to $165

Stryker Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/syk#NYSE">SYK</a>) has witnessed substantial gains in the year-to-date period. Shares of the company have rallied 18.6% compared with 13.4% growth of the&nbsp;industry. The S&amp;P 500 Composite has risen 20.1% during the same time frame.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for investors at the moment.
Headquartered in Kalamazoo, MI, Stryker is one of the world&#39;s largest medical device companies operating in the global orthopedic market. The company has three business segments &mdash; Orthopaedics, MedSurg and Neurotechnology &amp; Spine.
Strength in Stryker&#39;s flagship Mako Total Knee Platform, which enables surgeons to do pre-operative planning and precise surgeries, looks promising. The company is also adopting several cost-cutting measures, including restructuring plans. Its prospects seem promising on the back of strong customer demand for its existing products as well as new launches. Stryker&#39;s recent acquisitions also raise optimism about the stock.&nbsp;
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/01/80132.jpg?v=2080810141" />
Image Source: Zacks Investment Research
<h2>Catalysts for Stryker&#39;s Growth</h2>
The surge in the company&#39;s share price can be attributed to its advanced robotic arm-assisted surgery platform, Mako, a strong product lineup and strategic acquisitions. The positive sentiment, driven by a solid second-quarter fiscal 2024 performance and promising business potential, is expected to continue aiding it.
Stryker ended the second quarter on a high note, with both earnings and revenues showing year-over-year improvement. The company saw robust performance in the U.S. market, particularly in Instruments, Medical, Endoscopy, Trauma and Extremities, and Mako, which likely boosted the stock&#39;s price.
SYK has increased its revenue and earnings forecasts for fiscal 2024, likely attracting investor interest. The company now anticipates organic revenue growth of 9-10% for fiscal 2024, up from the previous guidance of 8.5-9.5%. Adjusted earnings per share for 2024 are now expected to be between $11.90 and $12.10, indicating 12% growth at the midpoint compared with the earlier projection of $11.85-$12.05.
SYK&#39;s extensive product range has also garnered investor optimism. Its broad product spectrum shields it from significant sales declines during economic downturns. The company&#39;s vast experience in medical robotics, artificial intelligence and mechatronics has kept it at the forefront of the MedTech industry.
In August, SYK launched the Pangea Plating System, which received FDA clearance in late 2023. The Pangea System offers variable-angle plating for diverse patient demographics with a comprehensive and adaptable portfolio. With the Pangea System, Stryker has become a key partner for trauma-related products, including plates, nails and external fixation devices, supported by dedicated staff and excellent service.
In June, Stryker introduced the LIFEPAK 35 monitor/defibrillator, a device featuring advanced technology aimed at improving workflow efficiency and providing advanced clinical solutions for emergency responders and healthcare professionals. Additionally, the company launched the Gamma4 Hip Fracture Nailing System in Germany on June 4.
In addition to expanding organically, Stryker has bolstered its expansion by way of acquisitions. Last month, the company completed the buyout of Vertos Medical, a privately held company providing a minimally invasive solution for treating chronic lower back pain caused by lumbar spinal stenosis.As a result of the acquisition, Stryker is set to expand its minimally invasive pain management portfolio with differentiated treatments and expand its reach across ambulatory surgery centers.
In June, Stryker also acquired care.ai, a privately held company specializing in AI-assisted virtual care workflows, smart room technology and ambient intelligence solutions. The company closed the acquisition of NICO Corporation, a privately held company providing a systematic approach to minimally invasive surgery for tumor and intracerebral hemorrhage procedures, in September.
SYK also announced the completion of the acquisition of MOLLI Surgical Inc., a privately held company specializing in the development of wire-free soft tissue localization technology for breast-conserving surgery, in August. In July, Stryker completed the previously announced acquisition of Artelon, a privately held company specializing in innovative soft tissue fixation products for foot and ankle and sports medicine procedures.
<h2>Risk Factors</h2>
As Stryker continues to acquire a large number of companies, which improves revenue opportunities, it is also likely to add to integration risks, putting gross and operating margins under pressure. Frequent acquisitions may affect the company&#39;s balance sheet in the form of a high level of goodwill and intangible assets.
A negative change in exchange rates is also a threat to SYK&#39;s core operations. The trend is likely to continue for the rest of 2024, though, at a slower pace. The company is also facing inflationary pressure, leading to lower margins.
<h2>A Look at Estimates</h2>
SYK&#39;s EPS for fiscal 2024 and 2025 is projected to increase 13.2% and 12.1% to $12.00 and $13.45 on a year-over-year basis, respectively.&nbsp; The Zacks Consensus Estimate for EPS for fiscal 2024 and 2025 has remained stable over the past 30 days.
Revenues for fiscal 2024 and 2025 are anticipated to rise 9.2% and 7.8%, respectively, to $22.37 billion and $24.12 billion on a year-over-year basis.
<div class="chart_embed">
<h3>Stryker Corporation Price</h3>
<img alt="Stryker Corporation Price" src="https://staticx-tuner.zacks.com/images/charts/bc/1727950805.png" style="height:254px; width:527px" title="" />
Stryker Corporation price | Stryker Corporation Quote
</div>
<h2>Stocks to Consider</h2>
Some better-ranked stocks in the broader medical space are&nbsp;Universal Health Service&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uhs#NYSE">UHS</a>),&nbsp;Quest Diagnostics&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgx#NYSE">DGX</a>) and&nbsp;Baxter International&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bax#NYSE">BAX</a>), each carrying a Zacks Rank #2 (Buy).
Universal Health Service has an estimated long-term growth rate of 19%. UHS&#39; earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 47% compared with the&nbsp;industry&#39;s&nbsp;47.7% rise so far this year.
Quest Diagnostics has an estimated long-term growth rate of 6.2%. DGX&#39;s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 12.3% so far this year compared with the&nbsp;industry&#39;s&nbsp;19% rise.
Baxter&#39;s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.74%.
BAX&#39;s shares have declined 6.9% so far this year against the&nbsp;industry&#39;s&nbsp;13.3% growth.
<a href="https://www.zacks.com/stock/news/2345185/stryker-stock-gains-18-6-ytd-what-s-driving-its-share-price?cid=CS-BENZ-FT-analyst_blog|price_surge_/_plunge-2345185">To read this article on Zacks.com click here.</a>

Tech

Stryker Stock Gains 18.6% YTD: What's Driving its Share Price?

GE HealthCare Technologies&#39; (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gehc#NASDAQ">GEHC</a>) MIM Software recently announced the receipt of FDA clearance for performing Centiloid scaling for positron emission tomography (PET)-based amyloid imaging analysis and quantification.
With MIMneuro, a vendor-neutral solution, this new Centiloid scale tool is likely to be able to assist physicians in more accurately determining the density of amyloid plaque in a patient&#39;s brain. Amyloid PET radiotracers help visualize amyloid plaque density in patients being evaluated for Alzheimer&#39;s disease.
<h2>Likely Trend of GEHC Stock Following the News</h2>
Following the announcement, shares of the company moved nearly 1.7% north to $88.53 at yesterday&#39;s close.
GE HealthCare is one of the leading providers of medical technology, pharmaceutical diagnostics, and digital solutions with a focus on precision care. In March, GE Healthcare acquired MIM Software, which added AI-based solutions for the practice of radiation oncology, molecular radiotherapy, diagnostic imaging, and urology at imaging centers, hospitals, specialty clinics and research organizations worldwide. Owing to the strong potential for the diagnostic imaging market, we expect the market sentiment to remain positive around this news.
Meanwhile, GEHC currently has a market capitalization of $39.63 billion. It has an earnings yield of 4.91% is much higher than the industry&#39;s yield of negative (7.12)%. In the last reported quarter, GEHC delivered an earnings surprise of 2.04%.
<h2>More on the GEHC&#39;s Centiloid Scaling Tool</h2>
A significant number of people in the United States develop dementia, with Alzheimer&#39;s disease accounting for 60-80% of dementia cases. The condition affects memory, thinking and behavior, and symptoms typically start with mild cognitive impairment and eventually grow severe enough to interfere with daily tasks. A characteristic feature of this condition is the build-up of beta-amyloid protein in the brain, which is connected to tissue loss and cell death.
In order to assist physicians in identifying potential patients for amyloid-targeting therapies, PET imaging makes it possible to visualize and quantify amyloid protein. A global consortium of physicians and scientists created the Centiloid scale with the goal of harmonizing quantitative amyloid imaging analysis throughout radiotracers and organizations.
GE HealthCare&#39;s MIM Software now offers MIMneuro with Centiloid scaling, leveraging an automated workflow to help guide users through generating and understanding the quantitative result. The software takes the PET amyloid images, provides clinicians instructions to automatically generate quantitative results, and presents the data in a standardized report for clinicians to review alongside the images. As a result, clinicians can more easily access the quantitative data they need to evaluate patients.
MIMneuro with Centiloid scaling is the latest addition to GE HealthCare&#39;s comprehensive suite of products and solutions, which span the Alzheimer&#39;s disease care pathway from diagnosis through treatment monitoring.
<h2>Favorable Industry Prospects for GEHC</h2>
Per a report by Future Market Insight, the global brain imaging and neuroimaging market was estimated to be $13.7 billion in 2023 and is anticipated to surpass $22.4 billion by 2033 at a CAGR of 5.1%. The brain imaging and neuroimaging market is primarily driven by the rising incidence and prevalence of neurological disorders, increased awareness of neurodegenerative diseases, an increase in traumatic brain injuries, and increased applications of brain imaging and neuroimaging in clinical trials.
Given the market potential, the latest FDA clearance of MIM Software&#39;s Centiloid Scaling Tool is likely to provide a boost to GEHC&#39;s business.
<h2>GEHC&#39;s Notable Developments</h2>
In August, GEHC announced the receipt of the CE mark for its Vscan Air SL wireless handheld ultrasound system with Caption AI. The company also received the CE mark for the use of ECG-less cardiac computed tomography scanning on its Revolution Apex platform.
The company also collaborated with the University of California San Diego School of Medicine. The tie-up aims to investigate advanced magnetic resonance imaging protocols and techniques for female-specific diseases and conditions of the pelvis and develop comprehensive educational materials for clinicians.
<h2>GEHC&#39;s Price Performance</h2>
In the past six months, GEHC shares have lost 2.6% compared with the industry&#39;s decline of 12.4%. The S&amp;P 500 has gained 7.6% in the same time frame.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/51/78442.jpg?v=1728486434" />
Image Source: Zacks Investment Research
<h2>GE HealthCare&#39;s Zacks Rank &amp; Stocks to Consider</h2>
GEHC carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are&nbsp;Universal Health Service&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uhs#NYSE">UHS</a>),&nbsp;Quest Diagnostics&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgx#NYSE">DGX</a>) and&nbsp;ABM Industries&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/abm#NYSE">ABM</a>). While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries carry a Zacks Rank #2 (Buy).
Universal Health Service has an estimated long-term growth rate of 19%. UHS&#39; earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 56.1% so far this year compared with the&nbsp;industry&#39;s&nbsp;48.1% rise.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX&#39;s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 13.9% so far this year compared with the&nbsp;industry&#39;s&nbsp;17.9% rise.
ABM Industries&#39; earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM&#39;s shares have risen 27.4% so far this year compared with the&nbsp;industry&#39;s&nbsp;17% growth.
<a href="https://www.zacks.com/stock/news/2338704/gehc-stock-rises-as-fda-clears-mim-software-s-centiloid-tool?cid=CS-BENZ-FT-analyst_blog|company_news_medical_sector-2338704">To read this article on Zacks.com click here.</a>

GEHC

GEHC Stock Rises as FDA Clears MIM Software's Centiloid Tool

Sentara Health Plans And Quest Diagnostics Announce Strategic Collaboration, Making Quest The Exclusive Independent Lab Provider For Sentara Members In Virginia And Florida

Solventum Corporation&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/solv#NYSE">SOLV</a>) recently announced the launch of the V.A.C. Peel and Place Dressing, an integrated dressing and drape that can be applied quickly&nbsp;and worn by patients for up to seven days.
Traditional dressings for negative pressure wound therapy typically take more than twice as long to apply, require a multi-step process of measuring and cutting separate foam and adhesive components, and may need to be changed at least three times a week.
The latest launch by SOLV is likely to solve the persisting issues of traditional dressings for negative pressure wound therapy, making it more accessible and less painful. The V.A.C. Peel and Place Dressing is an essential innovation in wound care that has the potential to improve outcomes, save both time and money and enhance the overall patient and clinician experience.
Due to the factors mentioned above, the product is likely to witness substantial demand in the field of negative pressure wound therapy and contribute to the top-line growth of the company, thus driving the share price of SOLV higher.
<h2>More on the SOLV&#39;s V.A.C Peel and Place Dressing</h2>
The latest development in V.A.C.&nbsp;Therapy is the new V.A.C.&nbsp;Peel and Place Dressing. Due to its integrated dressing and drape design, dressing application and changes are easier to perform, requiring less time and training. Moreover, it has an integrated non-adherent, perforated layer that reduces tissue ingrowth and lessens discomfort when removing the dressing.
The V.A.C. Peel and Place Dressing is suggested for use on wounds up to 6 cm deep, covering chronic, acute, traumatic, subacute, and dehisced wounds. Additionally, it can be used on partial thickness burns, pressure ulcers (such as those caused by diabetes), venous insufficiency, flaps, and grafts.
Research has demonstrated that the V.A.C. Peel and Place Dressing can substantially reduce&nbsp;therapy application time. It can also lower hospital bedside expenditures significantly&nbsp;because of fewer dressing changes and lower&nbsp;home nursing visits per week.
V.A.C.&nbsp;Therapy has been linked to noticeably faster wound healing. Over nearly three decades, it has been used globally to treat more than 10 million wounds. However, a rise in wound numbers is increasing due to aging populations and the incidence of chronic illnesses such as obesity and diabetes. The V.A.C. Peel and Place Dressing enables V.A.C. Therapy to be used on a wider range of patients across the continuum of care in both acute and post-acute settings.
The product is available now in the United States and Canada. Additional global regulatory submissions and approvals are pending.
<h2>Favorable Industry Prospects for SOLV</h2>
Per a report by Grand View Research, the global negative pressure wound therapy market size was estimated to be $2.5 billion in 2023 and is expected to witness a CAGR of 6.6% from 2024 to 2030.
Given the market potential, SOLV&#39;s V.A.C Peel and Place Dressing is likely to provide a boost to SOLV&#39;s business.
<h2>SOLV&#39;s&nbsp;Price Performance</h2>
In the past six months, SOLV shares have lost 1.1% compared with the industry&#39;s decline of 1.3%. The S&amp;P 500 has gained 6.4% in the same time frame.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/9f/77363.jpg?v=2024522534" />
Image Source: Zacks Investment Research
<h2>SOLV&#39;s Zacks Rank and Stocks to Consider</h2>
Currently, SOLV has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are&nbsp;Universal Health Service&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uhs#NYSE">UHS</a>),&nbsp;Quest Diagnostics&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgx#NYSE">DGX</a>)&nbsp;and&nbsp;ABM Industries&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/abm#NYSE">ABM</a>). While Universal Health Service sports a Zacks Rank #1 (Strong Buy), Quest Diagnostics and ABM Industries presently carry a Zacks Rank #2 (Buy).
Universal Health Service has an estimated long-term growth rate of 19%. UHS&#39; earnings surpassed estimates in each of the trailing four quarters, with the average being 14.58%.
Universal Health Service has gained 56.1% so far this year compared with the&nbsp;industry&#39;s&nbsp;48.1% rise.
Quest Diagnostics has an estimated long-term growth rate of 6.20%. DGX&#39;s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.31%.
Quest Diagnostics shares have gained 13.9% so far this year compared with the&nbsp;industry&#39;s&nbsp;17.9% rise.
ABM Industries&#39; earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 7.34%.
ABM&#39;s shares have risen 27.4% so far this year compared with the&nbsp;industry&#39;s&nbsp;17% growth.
<a href="https://www.zacks.com/stock/news/2334834/solventum-shares-may-gain-on-the-launch-of-its-new-v-a-c-therapy?cid=CS-BENZ-FT-analyst_blog|company_news_medical_sector-2334834">To read this article on Zacks.com click here.</a>

Events

SOLV

Solventum Shares May Gain on the Launch of Its New V.A.C Therapy

Glaukos Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/gkos#NYSE">GKOS</a>) is focused on the development and commercialization of novel surgical devices and sustained pharmaceutical therapies designed to treat glaucoma. The strength in the iStent product line and solid execution across its global glaucoma and Corneal Health franchises augur well.
The sustained recovery trends across segments and solid business prospects in spite of the pandemic-induced uncertainties raise optimism. Recent strategic alliances instill confidence in the stock.
The company is also engaged in boosting its portfolio through the development of new products. It currently has seven clinical-stage trials and another three preclinical development programs underway. A number of these pipeline programs are in active pivotal clinical trials, including iLution Travoprost, iDose ROCK and iDose TREX.
The company&#39;s shares have risen 58.2% year to date compared with the industry&#39;s 8.4% growth. The rally was primarily driven by top-line growth in the past few quarters. The S&amp;P 500 Index was up 14.4% in the same time frame.
However, stiff competition in the medical device industry and vendor uncertainty are other headwinds. Meanwhile, a stringent regulatory approval process for the iDose platform and products is a woe.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/b6/77271.jpg?v=801173257" />
Image Source: Zacks Investment Research
<h2>GKOS&#39; Products Driving Strong Business Performance</h2>
During the second quarter, GKOS&#39; glaucoma franchise witnessed growth in revenues, driven by its iStent portfolio, coupled with growing contributions from iDose TR. The company commenced the initial phases of the controlled launch plan for iDose TR during the reported quarter.
Per the second-quarter 2024 earnings call, iStent continued to demonstrate robust demand with positive surgeon feedback. This primarily highlights its three-stent solution favorable safety profile and streamlined injector system. The company&#39;s continued advancement in key market access initiatives for iStent infinite looks promising.
Continued strong demand across international glaucoma and Corneal Health franchises should be the key top-line drivers in 2024. Moreover, the commercial launch of iStent Infinite in 2023 is boosting the U.S. glaucoma franchise, which should drive growth in the upcoming few quarters.
The unique permanent J-code for iDose TR became effective from July 1. This is likely to increase patient access, driving sales growth in the upcoming quarters. The franchise also benefited from rapid international expansion.
<h2>Clinical Progress Drives GKOS&#39; Prospects</h2>
Clinical trials are the primary means to evaluate the efficacy and safety of new medical technologies.
Glaukos is currently developing several pipeline products, namely iDose TREX, iDose ROCK and iLution Travoprost. These next-generation extended-release candidates are in different stages of clinical development. Successful development, followed by a potential launch of these products, should boost Glaukos&#39; glaucoma portfolio.
The iDose TR candidate received the FDA approval in December 2023. The candidate, a targeted injectable implant, demonstrated tolerability and a favorable safety profile through 12 months in a late-stage clinical study.
Glaukos is also evaluating iLink system using Epioxa therapy for the treatment of keratoconus without the removal of the epithelium in a phase III study. The company has already completed one phase III study in 2021 on iLink. A potential new drug application is expected to be filed by the end of 2024.
The company commenced three new clinical trials during the fourth quarter of 2023 &mdash; a PMA clinical trial for iStent infinite in mild-to-moderate glaucoma patients; a Phase 2a study for iLution Travoprost; and a first-in-human clinical development program for GLK-401, an intravitreal multi-kinaseinhibitor retinal program for wet AMD patients. The company plans to start a phase 3 study for iDose TREX later in 2024 and complete enrollment in Phase 2 trials for its iLink third-generation therapy.
<h2>International Market Holds Potential for GKOS</h2>
Apart from the U.S. market, Glaukos is also focusing on expanding on a global scale. The company has been developing a sales base and increasing its marketing and market access efforts. It currently sells its products primarily through direct sales subsidiaries in 17 countries and independent distributors in certain nations.
GKOS&#39; continued efforts to scale its international infrastructure and execute the plans to position MIGS as a standard of care in each region and every major market in the world will likely boost glaucoma revenues going forward. The company&#39;s efforts have been positively impacting its international growth.
In the fourth quarter of 2023, the company&#39;s Glaucoma sales were up more than 25%. Corneal Health sales improved 19% in international markets. Continued broad-based growing demand in many key international markets for combined cataract and glaucoma procedures is likely to continue in the upcoming few quarters.
<h2>Factors Hurting the Stock</h2>
Glaukos&#39; competitors include medical companies, academic and research institutions, and others that develop new drugs, therapies, medical devices or surgical procedures to treat glaucoma. Thus, intense competition continues to weigh on the company&#39;s overall performance.
GKOS currently relies on a limited number of third-party suppliers, in some cases sole suppliers, to supply components for the iStent, the iStent inject models and other pipeline products. If any one or more of these suppliers cease to provide the company with sufficient quantities of components or drugs in a timely manner or on acceptable terms, it would have to seek alternate sources of supply.
Additionally, some of the vendors continue to experience challenges pertaining to supply of raw materials and labor shortages. As a result of these supply chain challenges and current inflationary pressures, Glaukos has experienced higher costs for certain components and raw materials. These setbacks are likely to remain for the rest of 2024, albeit at a slower pace.&nbsp;
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<h3>Glaukos Corporation Price</h3>
<img alt="Glaukos Corporation Price" src="https://staticx-tuner.zacks.com/images/charts/0f/1726048478.png" style="height:251px; width:575px" title="" />
Glaukos Corporation price | Glaukos Corporation Quote
</div>
<h2>GKOS&#39; Zacks Rank &amp; Stocks to Consider</h2>
Glauos currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are DaVita Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dva#NYSE">DVA</a>), Quest Diagnostics Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgx#NYSE">DGX</a>) and Boston Scientific Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bsx#NYSE">BSX</a>).
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 17.5%.
DVA&#39;s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 24.2%. Its shares have risen 56.9% compared with the industry&#39;s 27.5% growth in the past year.
Quest Diagnostics, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 6.2%. DGX&#39;s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.
Quest Diagnostics&#39; shares have risen 21.6% compared with the industry&#39;s 27.5% growth in the past year.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.6%. BSX&#39;s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.2%.
Boston Scientific&#39;s shares have rallied 50.8% compared with the industry&#39;s 17.2% growth in the past year.
<a href="https://www.zacks.com/stock/news/2334519/glaukos-stocks-rides-on-strong-product-demand-amid-competition?cid=CS-BENZ-FT-analyst_blog|zer_report_update-2334519">To read this article on Zacks.com click here.</a>

GKOS

Glaukos Stocks Rides on Strong Product Demand Amid Competition

Patterson Companies, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pdco#NASDAQ">PDCO</a>) is well poised for growth in the coming quarters, courtesy of its broad product line. The optimism, led by a strong performance of certain business segments during first-quarter fiscal 2024 and a few notable acquisitions, is expected to contribute further. Integration risks and stiff competitive forces persist.
Shares of this Zacks Rank #3 (Hold) company have lost 24.6% in the past year compared with the industry&#39;s 6.1% decline. The S&amp;P 500 Index has increased 5.9% during the same time frame.
The renowned global dental and animal health company has a market capitalization of $1.82 billion. It projects 5.9% growth for the next five years and expects to maintain its strong performance going forward. Patterson Companies&#39; earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 10.78%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/66/77100.jpg?v=775213013" />
Image Source: Zacks Investment Research
Let&#39;s delve deeper.
<h2>Upsides</h2>
Broad Product Spectrum: We are optimistic about Patterson Companies&#39; wide range of consumable supplies, equipment and software, and value-added services. A notable offering from PDCO is a private-label brand named Pivotal. It continues to add stock-keeping units to its broader private-label portfolio. The company&#39;s NaVetor is an integrated cloud-based veterinary practice management software for its Animal Health segment.
In June, PDCO launched new integrations for DentalXChange to provide additional electronic insurance processing and electronic patient statement solutions. In May, it announced a new product, Patterson CarePay+, to provide dental offices with software solutions for patient financing, dental insurance plans and payment processing.
Acquisitions &amp; Alliance: We are upbeat about PDCO&#39;s strategy of expanding its business via strategic acquisitions. In July, Patterson Dental Canada collaborated with Pearl to expand its Second Opinion AI disease detection capabilities&#39; reach in the Canadian dental market. By integrating Second Opinion within Patterson Dental Canada&#39;s leading software platforms, such as Eaglesoft, Fuse and Dolphin, the partnership aims to elevate the standard of dental care across North America.
During 2023, Patterson Companies completed its acquisition of the Texas-based companies, Veterinary Practitioners and Animal Care Technologies, which provide innovative solutions to veterinary practices through data extraction and conversion, staffing and video-based training services. In 2022, the company announced the acquisition of substantially all the assets of Dairy Tech, Inc., which provides pasteurizing equipment and single-use bags.
Fulfillment Facility Modernization to Optimize Supply: PDCO started strategic modernization of its existing fulfillment facilities and capabilities. It is adding new technologies, such as robots, to automate order picking and enhance the fulfillment pace.
PDCO is also focusing on expanding its fulfillment capacity by opening next-generation centers across several countries that will help build sustainable and more efficient channel capabilities. The company&#39;s strategic investments in fulfillment centers should help alleviate capacity constraints, boost distribution capabilities and enhance growth.
To support its facility modernization and expansion, PDCO has allocated $51.2 million in capital spending during fiscal 2024. The amount has increased 20.8% from the prior-year level.
Strong Q1 Results: Patterson Companies&#39; revenues and earnings missed estimates in the first quarter of fiscal 2024, reflecting the negative impact of a cybersecurity attack on its claims processing vendor, Change Healthcare. The impact is likely to alleviate in the upcoming quarters, potentially improving the top and bottom-line performance. Continued growth in the production animal business supported sales in the Animal Health segment.
PDCO has been making significant investments in developing its software and value-added services offerings across both its Dental and Animal Health segments. These are likely to drive the demand for its products.
<h2>Downsides</h2>
Stiff Competition: The U.S. dental products distribution industry is highly competitive and consists chiefly of national, regional and local full-service and mail-order distributors. Patterson Companies needs to continue to introduce newer products in the market to withstand competitive pressure. Failure to do so can dilute its market share.
Integration Risks: PDCO has been on an acquisition spree, which is improving its revenue opportunities but aggravating integration risks. Regular acquisitions are also a distraction for management and are likely to impact organic growth. This may limit the company&#39;s future expansion initiatives and worsen its risk profile.
<div class="chart_embed">
<h3>Patterson Companies, Inc. Price</h3>
<img alt="Patterson Companies, Inc. Price" src="https://staticx-tuner.zacks.com/images/charts/d7/1725957492.png" style="height:251px; width:572px" title="" />
Patterson Companies, Inc. price | Patterson Companies, Inc. Quote
</div>
<h2>Estimate Trend</h2>
The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $6.62 billion, indicating a 0.8% increase from the previous year&#39;s level. The consensus mark for adjusted earnings per share is pinned at $2.33, implying a 1.3% year-over-year improvement.
<h2>Stocks to Consider</h2>
Some better-ranked stocks in the broader medical space are DaVita Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dva#NYSE">DVA</a>), Quest Diagnostics Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgx#NYSE">DGX</a>) and Boston Scientific Corporation.
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 17.5%. DVA&#39;s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 24.2%.
DaVita&#39;s shares have risen 56.9% compared with the industry&#39;s 27.5% growth in the past year.
Quest Diagnostics, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 6.2%. DGX&#39;s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.3%.
Quest Diagnostics&#39; shares have risen 21.6% compared with the industry&#39;s 27.5% growth in the past year.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.6%. BSX&#39;s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.2%.
Boston Scientific&#39;s shares have rallied 50.8% compared with the industry&#39;s 17.2% growth in the past year.
<a href="https://www.zacks.com/stock/news/2334054/here-s-why-you-should-retain-pdco-stock-in-your-portfolio-for-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2334054">To read this article on Zacks.com click here.</a>

Financing

PDCO

Here's Why You Should Retain PDCO Stock in Your Portfolio for Now

The Ensign Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ensg#NASDAQ">ENSG</a>) announced that it has bought the operations of a nursing facility in Overland Park, KS. It has also acquired the operations of seven nursing facilities in Colorado. All these buyouts (with long-term, triple net leases) had an effective date of Sept. 1, 2024.&nbsp;
The 102-bed unit in Kansas, named Prairie Ridge Health and Rehabilitation, boosts ENSG&#39;s footprint in the state. The acquisition comes at an opportune time, as the company is experiencing significant growth in the state over the last year.
The series of acquisitions in Colorado includes the 106-bed Desert Willow Health and Rehabilitation Center in Pueblo, 133-bed Junction Creek Health and Rehabilitation Center in Durango, 104-bed Pelican Pointe Health and Rehabilitation Center in Windsor, 100-bed Riverbend Health and Rehabilitation Center in Loveland, 100-bed Broadview Health and Rehabilitation Center in Greeley, 107-bed Westlake Lodge Health and Rehabilitation Center in Greeley and 110-bed Linden Place Health and Rehabilitation Center in Longmont.
The acquisition deals have increased Ensign&#39;s portfolio to encompass 323 healthcare operations spanning 14 states. Of the total, 29 also have senior living operations. The company, along with its subsidiaries like Standard Bearer, now owns 122 real estate properties.
ENSG boasts a strong inorganic growth story. The company remains committed to pursuing opportunities for acquiring real estate and leasing both successful and struggling skilled nursing, senior living and other healthcare-related operations. As the number of facilities rises, revenues from skilled services are expected to increase, supported by higher occupancy rates and patient days, indicating robust growth in profits and the top line. This is reflected in the estimates.
<h2>ENSG&#39;s 2024 Estimates</h2>
The Zacks Consensus Estimate for Ensign&#39;s 2024 earnings indicates 14.1% year-over-year growth to $5.44 per share. It beat earnings estimates in each of the past four quarters, with an average surprise of 1.4%. Also, the consensus mark for 2024 revenues indicates a 13.1% jump from a year ago.
<h2>Price Performance</h2>
Shares of Ensign have jumped 23% in the past three months compared with the industry&#39;s 20.9% growth.
<h2>Zacks Rank &amp; Other Key Picks</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/ff/76571.jpg?v=2074871970" />
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). Investors can look at some other top-ranked stocks in the broader Medical&nbsp;space, like Universal Health Services, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uhs#NYSE">UHS</a>), Tenet Healthcare Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/thc#NYSE">THC</a>) and Quest Diagnostics Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgx#NYSE">DGX</a>). While Universal Health and Tenet Healthcare currently sport a Zacks Rank #1 (Strong Buy) each, Quest Diagnostics carries a Zacks Rank #2.
The Zacks Consensus Estimate for Universal Health Services&#39; 2024 bottom line suggests 50.8% year-over-year growth. UHS witnessed two upward estimate revisions over the past month against no movement in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 14.6%.
The Zacks Consensus Estimate for Tenet Healthcare&#39;s 2024 bottom line is pegged at $10.70 per share, which indicates 53.3% growth from a year ago. During the past month, THC witnessed two upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 58.5%.
The Zacks Consensus Estimate for Quest Diagnostics&#39; 2024 full-year earnings implies a 2.1% increase from the year-ago reported figure. DGX beat earnings estimates in each of the last four quarters, with an average surprise of 3.3%. The consensus mark for its current-year revenues is pegged at $9.6 billion, which indicates a 3.3% year-over-year increase.
<a href="https://www.zacks.com/stock/news/2331595/ensign-adds-8-facilities-in-kansas-colorado-to-expand-footprint?cid=CS-BENZ-FT-analyst_blog|company_news_medical_sector-2331595">To read this article on Zacks.com click here.</a>

ENSG

Ensign Adds 8 Facilities in Kansas & Colorado to Expand Footprint

Karthik Kuppusamy, SVP at Quest Diagnostics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGX#NYSE">DGX</a>), disclosed an insider sell on August 29, according to a recent SEC filing.
What Happened: A Form 4 filing from the <a href="https://www.sec.gov/Archives/edgar/data/0001022079/000102207924000174//Archives/edgar/data/1022079/000102207924000174/0001022079-24-000174-index.htm">U.S. Securities and Exchange Commission</a> on Thursday showed that Kuppusamy sold 1,990 shares of Quest Diagnostics. The total transaction amounted to $304,989. 
As of Friday morning, Quest Diagnostics shares are down by 0.0%, currently priced at $156.23.
<h3>Get to Know Quest Diagnostics Better</h3>
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.
<h3>Financial Insights: Quest Diagnostics</h3>
Revenue Growth: Over the 3 months period, Quest Diagnostics showcased positive performance, achieving a revenue growth rate of 2.52% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.
Profitability Metrics:
<ul>
<li>
Gross Margin: The company maintains a high gross margin of 33.54%, indicating strong cost management and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.05, Quest Diagnostics showcases strong earnings per share.
</li>
</ul>
Debt Management: Quest Diagnostics's debt-to-equity ratio is below the industry average. With a ratio of 0.77, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Market Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: The P/E ratio of 21.08 is lower than the industry average, implying a discounted valuation for Quest Diagnostics's stock.
</li>
<li>
Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.87, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 12.68, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
</li>
</ul>
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
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<h3>The Impact of Insider Transactions on Investments</h3>
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>Understanding Crucial Transaction Codes</h3>
When it comes to transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001022079">Check Out The Full List Of Quest Diagnostics's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Insider Unloading: Karthik Kuppusamy Sells $304K Worth Of Quest Diagnostics Shares

Phibro Animal Health&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pahc#NASDAQ">PAHC</a>) delivered adjusted earnings per share of 41 cents in the fourth quarter of fiscal 2024, up 7.9% from the year-ago quarter&#39;s level. The bottom line beat the Zacks Consensus Estimate by 20.6%.
Without adjustments, the GAAP EPS in the quarter was 2 cents, down 92.9% from the year-ago quarter&#39;s figure.
PAHC reported full-year adjusted EPS of $1.19, reflecting a 1.7% decline from fiscal 2023. The figure beat the Zacks Consensus Estimate by 6.25%.
<h2>PAHC&#39;s Net Sales</h2>
In the quarter under review, net sales totaled $273.2 million, up 7.1% from the year-ago quarter&#39;s level. The figure also topped the Zacks Consensus Estimate by 4.1%.
For fiscal 2024, the company reported net sales of $1.02 billion, up 4.1% from the prior-year level. The figure beat the Zacks Consensus Estimate by a marginal 1%.
<h2>Phibro&#39;s Segmental Sales</h2>
The company conducts its operations via three segments &mdash; Animal Health, Mineral Nutrition and Performance Products.
In the fourth quarter of fiscal 2024,&nbsp;Animal Health&#39;s net sales increased 8% to $191.5 million. Within the segment, net sales of medicated feed additives (MFAs) and others reflected 12% year-over-year growth. The uptick was driven by the increased demand for MFAs in both domestic and international regions and higher demand for processing aids used in the ethanol fermentation industry. The top line surpassed our model&#39;s projection of $181.8 million by 5.3%.
Nutritional specialty product sales decreased 4%, primarily due to lower demand for dairy products. However, net vaccine sales showed a year-over-year rise of 14%, mostly due to poultry product introductions in Latin America, along with an increase in domestic and international demand.
Net sales in the&nbsp;Mineral Nutrition&nbsp;segment rose 6% year over year to $62.1 million due to increased sales volume and higher average selling price. The top line surpassed our model&#39;s projection of $61.9 million by a marginal 0.3%.
Net sales in the&nbsp;Performance Products&nbsp;segment fell 1% to $19.6 million as a result of the decreased demand for personal care product ingredients and industrial chemicals. The top line surpassed our model&#39;s projection of $18 million by 8.9%.
<h2>Phibro Animal Health Corporation Price, Consensus and EPS Surprise</h2>
<div class="chart_embed"><img alt="Phibro Animal Health Corporation Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/9c/1724935133.png" style="height:265px; width:577px" title="" /></div>
<div class="chart_embed">Phibro Animal Health Corporation price-consensus-eps-surprise-chart | Phibro Animal Health Corporation Quote</div>
<h2>PAHC&#39;s Margin Performance</h2>
Phibro&#39;s fiscal fourth-quarter gross profit rose 13.8% year over year to $87.2 million. The gross margin expanded 188 basis points (bps) to 31.9% despite a 4.3% rise in the cost of goods sold.
SG&amp;A expenses in the reported quarter were $68.7 million, up 29.9% from the year-ago quarter&#39;s levels. The operating profit declined 21% year over year to $18.5 million and the operating margin contracted 252 bps to 6.8% in the quarter under review.
<h2>PAHC&#39;s Financial Update</h2>
The company exited the fourth quarter of fiscal 2024 with cash and short-term investments of $114.6 million compared with $98.7 million at the end of the fiscal third quarter.
Cumulative net cash provided by operating activities at the end of fiscal 2024 was $87.6 million compared with $13.3 million in the year-ago period.
<h2>Phibro&#39;s Fiscal 2025 Guidance</h2>
The company expects net sales to be between $1.04 billion and $1.09 billion. The Zacks Consensus Estimate for the metric is pegged at $1.25 billion.
Adjusted EPS is expected to be in the range of $1.22-$1.37. The Zacks Consensus Estimate for the same is pegged at $1.43.
<h2>Our Take on Phibro&#39;s Q4 Results</h2>
Phibro delivered better-than-expected revenues and earnings in the reported quarter. The core Animal Health segment benefited from the robust performance of the vaccine, MFAs and other businesses. Additionally, the Mineral Nutrition Products segment reported year-over-year growth.
The anticipated closing of the Zoetis Medicated Feed Additive portfolio acquisition in the coming months may lead to strong earnings accretion. It can also drive investments in the faster-growing vaccines, nutritional specialties and companion animal product segments.
Meanwhile, the contraction of the operating margin in the quarter is discouraging. Declining revenues from the Performance Products segment raise concern.
<h2>PAHC&#39;s Zacks Rank &amp; Other Key Picks</h2>
Phibro currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Intuitive Surgical (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/isrg#NASDAQ">ISRG</a>), TransMedics Group&nbsp;and Quest Diagnostics&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dgx#NYSE">DGX</a>).
Intuitive Surgical reported a second-quarter 2024 adjusted EPS of $1.78, which beat the Zacks Consensus Estimate by 16.3%. Revenues of $2.01 billion topped the consensus estimate by 2%. ISRG currently sports a Zacks Rank #1 (Strong Buy).
Intuitive Surgical has a long-term five-year earnings growth rate of 17.4% compared with the industry&#39;s 13.7%. The company&#39;s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.97%.
TransMedics, carrying a Zacks Rank #1 at present, reported second-quarter 2024 earnings of 35 cents per share, which surpassed the Zacks Consensus Estimate by 66.7%. Revenues of $114.3 million topped the Zacks Consensus Estimate by 15.9%.
TMDX has an earnings growth rate of 51.7% for 2025 compared with the S&amp;P 500&#39;s 11.3%. The company beat on earnings in each of the trailing four quarters, the average surprise being 287.50%.
Quest Diagnostics, carrying a Zacks Rank #2 (Buy) at present, reported a second-quarter adjusted EPS of $2.35, which surpassed the Zacks Consensus Estimate by 1.7%. Revenues of $2.40 billion outpaced the Zacks Consensus Estimate by 0.5%.
DGX has a historical five-year earnings growth rate of 7.4% compared with the industry&#39;s 4.2%. The company&#39;s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%.
<a href="https://www.zacks.com/stock/news/2328933/phibro-q4-earnings-and-revenues-beat-operating-margin-down?cid=CS-BENZ-FT-analyst_blog|earnings_article-2328933">To read this article on Zacks.com click here.</a>

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Phibro Q4 Earnings and Revenues Beat, Operating Margin Down

Evercore ISI Group analyst Elizabeth Anderson reinstates Quest Diagnostics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGX#NYSE">DGX</a>) with a In-Line and announces $165 price target.

Initiation

Evercore ISI Group Reinstates In-Line on Quest Diagnostics, Announces $165 Price Target

7 analysts have expressed a variety of opinions on Quest Diagnostics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGX#NYSE">DGX</a>) over the past quarter, offering a diverse set of opinions from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $155.57, a high estimate of $165.00, and a low estimate of $150.00. Surpassing the previous average price target of $147.71, the current average has increased by 5.32%.
<img src="https://www.benzinga.com/files/images/story/2024/1724770822_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
A comprehensive examination of how financial experts perceive Quest Diagnostics is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Stephanie Davis</td>
<td>Barclays</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$154.00</td>
<td>$144.00</td>
</tr>
<tr>
<td>David Westenberg</td>
<td>Piper Sandler</td>
<td>Raises</td>
<td>Neutral</td>
<td>$150.00</td>
<td>$145.00</td>
</tr>
<tr>
<td>Eric Coldwell</td>
<td>Baird</td>
<td>Raises</td>
<td>Neutral</td>
<td>$154.00</td>
<td>$153.00</td>
</tr>
<tr>
<td>David Macdonald</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Hold</td>
<td>$158.00</td>
<td>$150.00</td>
</tr>
<tr>
<td>Patrick Donnelly</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$165.00</td>
<td>$145.00</td>
</tr>
<tr>
<td>Eric Coldwell</td>
<td>Baird</td>
<td>Raises</td>
<td>Neutral</td>
<td>$153.00</td>
<td>$145.00</td>
</tr>
<tr>
<td>Lisa Gill</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$155.00</td>
<td>$152.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Quest Diagnostics. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Quest Diagnostics compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Quest Diagnostics's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Quest Diagnostics's market standing. Stay informed and make data-driven decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/DGX/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Quest Diagnostics analyst ratings.</a>
<h2>Delving into Quest Diagnostics's Background</h2>
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.
<h3>Quest Diagnostics: Delving into Financials</h3>
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Growth: Quest Diagnostics displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 2.52%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Quest Diagnostics's net margin is impressive, surpassing industry averages. With a net margin of 9.51%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Quest Diagnostics's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 3.49%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.64%, the company showcases effective utilization of assets.
Debt Management: Quest Diagnostics's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.77.
<h2>The Basics of Analyst Ratings</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

What Analysts Are Saying About Quest Diagnostics Stock

Barclays analyst Stephanie Davis maintains Quest Diagnostics (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DGX#NYSE">DGX</a>) with a Equal-Weight and raises the price target from $144 to $154.

Barclays Maintains Equal-Weight on Quest Diagnostics, Raises Price Target to $154

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Quest Diagnostics Completes Acquisition of Select Lab Assets from Allina Health

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Quest Diagnostics to Release Third Quarter 2024 Financial Results on October 22, 2024

Quest Diagnostics Completes Acquisition of Lab Assets from OhioHealth

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