Quest Diagnostics, Inc. (NYSE:DGX)
CAPS Rating:
A provider of diagnostic testing, information and services, providing insights that enable physicians and other healthcare professionals to make decisions to improve health.
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Fool UK
Recs
Strong ROE with ability to grow. I like this company due to its strong competitive position, effectively sharing the market with Labcorp, backed up by strong scale benefits. The company should also experience strong growth due to the oh-so-talked-about baby boomer aging and potential overall medical savings from increased screening. There is the potential of exponential growth in screening with genome based tests, which could help prevent or decrease the negative impact of a large number of major conditions(I see this as more of a built in option as the ability to prediagnose is uncertain in both impact and timing). This company, despite its competitive advantages, runs the risk of a shrinking market if select tests are made easier to perform and can therefore be performed in the doctors office(this distinction is made by a government organization). At its current pricing I believe this company should be able to outpace the S&P in the vast majority of situations.