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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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Tony927 (< 20) Submitted: 8/29/06 11:08 PM : Start Price: $63.27 DGX Score: 8.47
DGX has a trailing PE of 22.3. That is a little higher than its average PE over the past year but not outrageous. It pays a dividend of 40 cents. It is the largest company of its type so it has economies of scale. It is in a relatively "safe" medical industry. People need to be tested for certain medical situations. With people living longer and the baby boomers getting older, this company should continue to do well for at least 5 years. It will probably do will for 10 plus years.
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pauleckler (44.26) Submitted: 9/21/06 7:24 PM
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I agree with Tony927 whole heartedly. DGX is a leader in medical testing laboratories. They have a national network providing this service. Whereas the drug companies worry constantly about developing new drugs, drugs in the pipeline, drugs coming off patent, gerneric competition, new drug registrations, FDA approvals, costs of new drug development, etc, etc, DGX provides a useful service that does not have the high wire risk components. Yet the business seems likely to grow as the graying of America means more of us will need medical attention. They may have numerous smallish competitors, but none seem to be a threat. These guys should be clear winners. Execution to plan is the key, and so far they have executed well.
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