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DGX Stock to Benefit From New Partnership With Sentara Health Plans
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Quest Diagnostics (DGX - Free Report) and Sentara Health Plans announced a multi-year strategic collaboration to expand access to high-quality, affordable and comprehensive laboratory testing for the members of Sentara Health Plans. Per the deal, starting Jan. 1, 2025, DGX will be the exclusive independent national laboratory provider of clinical laboratory and anatomic pathology services for Sentara Health Plans’ members, including commercial and government programs.
The agreement applies to Sentara Health Plans’ members in Florida and Virginia, including those in Sentara's Florida-serving AvMed business.
DGX Stock Predictions Following the News
After the announcement, DGX shares edged up 0.1% to $155.48 at the closing on Wednesday. However, the company is positioning itself as a strategic partner for health plans, aiming to reduce healthcare costs while improving access, innovation and quality of care. Through the latest partnership, Quest Diagnostics has found an opportunity to extend its services into the southeastern United States, particularly Virginia, where the company had a limited presence. Accordingly, we anticipate the market sentiment toward the DGX stock to remain positive attributed to this development.
The diagnostics leader presently boasts a market capitalization of $17.31 billion. According to the Zacks Consensus Estimate, Quest Diagnostics’ earnings are expected to grow 2.3% and revenues 4.5% in the upcoming third quarter of 2024. It has delivered an average earnings surprise of 3.3% in the trailing four quarters.
More on DGX’s New Partnership
Sentara Health, a not-for-profit healthcare delivery system with more than 130 years of experience, is recognized as one of the largest health systems in the U.S. Mid-Atlantic and Southeast, and among the country's top 20 largest not-for-profit integrated health systems. The healthcare delivery system caters to nearly one million members in Virginia and Florida through its Sentara Health Plans division, offering a full suite of commercial products, including employee-owned and employer-sponsored plans, Individual & Family Health Plans, Employee Assistance Programs and plans serving Dual-Eligible, Medicare and Medicaid enrolees.
Image Source: Zacks Investment Research
As part of the agreement, Quest Diagnostics and Sentara Health Plans will work together to expand its patient service center network to support patient access in some geographies. The parties will also explore ways to educate Sentara Health Plans’ members and providers on the benefits of redirecting testing to DGX from higher-cost, out-of-network providers.
Industry Prospects Favor DGX
The global clinical laboratory services market was valued at $233.2 billion in 2023 and is expected to witness a CAGR of 3.5% by 2030, according to a Grand View Research report.
The growing burden of chronic diseases and the demand for early diagnostic tests are fueling the market’s growth. Several key players are employing geographic expansion strategies to ensure a more extensive market reach. Moreover, rapid advancements in data management and sample preparation due to growing testing volumes are anticipated to boost market growth in the forecasted period.
Quest Diagnostics’ Recent Developments
Earlier this week, Quest Diagnostics completed its acquisition of select laboratory assets from Allina Health, a nonprofit healthcare system operating in Minnesota and western Wisconsin. The transaction aims to improve access to high-quality and affordable laboratory services for providers and patients in the region.
DGX Stock Price Performance
In the past year, shares of DGX have gained 25.6% compared to the industry’s growth of 30.8%.
DGX’s Zacks Rank and Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold).
Boston Scientific’s shares have risen 54.7% in the past year. Estimates for the company’s earnings per share have remained constant at $2.40 in 2024 and $2.71 in 2025 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.2%. In the last reported quarter, it posted an earnings surprise of 6.9%.
Estimates for AxoGen’s 2024 loss per share have remained constant at 1 cent in the past 30 days. Shares of the company have surged 182.1% in the past year compared with the industry’s growth of 18.8%. AXGN’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 96.5%. In the last reported quarter, it delivered an earnings surprise of 200%.
Estimates for Phibro Animal Health’s 2024 earnings per share have risen 0.7% in the past 30 days. Shares of the company have gained 78.5% in the past year compared with the industry’s 19.1% growth. PAHC’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 4.1%. In the last reported quarter, it delivered an earnings surprise of 20.6%.
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Quest Diagnostics (DGX - Free Report) and Sentara Health Plans announced a multi-year strategic collaboration to expand access to high-quality, affordable and comprehensive laboratory testing for the members of Sentara Health Plans. Per the deal, starting Jan. 1, 2025, DGX will be the exclusive independent national laboratory provider of clinical laboratory and anatomic pathology services for Sentara Health Plans’ members, including commercial and government programs.
The agreement applies to Sentara Health Plans’ members in Florida and Virginia, including those in Sentara's Florida-serving AvMed business.
DGX Stock Predictions Following the News
After the announcement, DGX shares edged up 0.1% to $155.48 at the closing on Wednesday. However, the company is positioning itself as a strategic partner for health plans, aiming to reduce healthcare costs while improving access, innovation and quality of care. Through the latest partnership, Quest Diagnostics has found an opportunity to extend its services into the southeastern United States, particularly Virginia, where the company had a limited presence. Accordingly, we anticipate the market sentiment toward the DGX stock to remain positive attributed to this development.
The diagnostics leader presently boasts a market capitalization of $17.31 billion. According to the Zacks Consensus Estimate, Quest Diagnostics’ earnings are expected to grow 2.3% and revenues 4.5% in the upcoming third quarter of 2024. It has delivered an average earnings surprise of 3.3% in the trailing four quarters.
More on DGX’s New Partnership
Sentara Health, a not-for-profit healthcare delivery system with more than 130 years of experience, is recognized as one of the largest health systems in the U.S. Mid-Atlantic and Southeast, and among the country's top 20 largest not-for-profit integrated health systems. The healthcare delivery system caters to nearly one million members in Virginia and Florida through its Sentara Health Plans division, offering a full suite of commercial products, including employee-owned and employer-sponsored plans, Individual & Family Health Plans, Employee Assistance Programs and plans serving Dual-Eligible, Medicare and Medicaid enrolees.
Image Source: Zacks Investment Research
As part of the agreement, Quest Diagnostics and Sentara Health Plans will work together to expand its patient service center network to support patient access in some geographies. The parties will also explore ways to educate Sentara Health Plans’ members and providers on the benefits of redirecting testing to DGX from higher-cost, out-of-network providers.
Industry Prospects Favor DGX
The global clinical laboratory services market was valued at $233.2 billion in 2023 and is expected to witness a CAGR of 3.5% by 2030, according to a Grand View Research report.
The growing burden of chronic diseases and the demand for early diagnostic tests are fueling the market’s growth. Several key players are employing geographic expansion strategies to ensure a more extensive market reach. Moreover, rapid advancements in data management and sample preparation due to growing testing volumes are anticipated to boost market growth in the forecasted period.
Quest Diagnostics’ Recent Developments
Earlier this week, Quest Diagnostics completed its acquisition of select laboratory assets from Allina Health, a nonprofit healthcare system operating in Minnesota and western Wisconsin. The transaction aims to improve access to high-quality and affordable laboratory services for providers and patients in the region.
DGX Stock Price Performance
In the past year, shares of DGX have gained 25.6% compared to the industry’s growth of 30.8%.
DGX’s Zacks Rank and Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Boston Scientific (BSX - Free Report) , AxoGen (AXGN - Free Report) and Phibro Animal Health (PAHC - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific’s shares have risen 54.7% in the past year. Estimates for the company’s earnings per share have remained constant at $2.40 in 2024 and $2.71 in 2025 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.2%. In the last reported quarter, it posted an earnings surprise of 6.9%.
Estimates for AxoGen’s 2024 loss per share have remained constant at 1 cent in the past 30 days. Shares of the company have surged 182.1% in the past year compared with the industry’s growth of 18.8%. AXGN’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 96.5%. In the last reported quarter, it delivered an earnings surprise of 200%.
Estimates for Phibro Animal Health’s 2024 earnings per share have risen 0.7% in the past 30 days. Shares of the company have gained 78.5% in the past year compared with the industry’s 19.1% growth. PAHC’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 4.1%. In the last reported quarter, it delivered an earnings surprise of 20.6%.