Quest Diagnostics (DGX) Could Be 6% Undervalued After Florida ECG Screening Push

Florida ECG mandate puts Quest Diagnostics in the spotlight

Quest Diagnostics (DGX) is in focus after partnering with Who We Play For and other health groups on a cardiac screening program at its Tampa Sheldon Road site for Florida high school athletes.

The initiative supports Florida’s Second Chance Act, which from July 1, 2026 will require ECG heart checks for student athletes. The pilot targets up to 1,000 screenings by late November, with organizers planning a broader Southeast rollout.

Quest Diagnostics shares trade at US$233.07, with the stock posting a 90 day share price return of 8.04% and a year to date share price gain of 34.11%, while total shareholder return sits at 30.26% over one year and more than doubles over three years. This suggests that investors are rewarding the business as it leans into higher profile community health programs such as the ECG rollout in Florida.

Scan for other healthcare players leaning into community health programs with our curated list of solid balance sheet and fundamentals (25 results), which may echo the Quest Diagnostics story.

After Quest Diagnostics’ strong run and rising focus on community health programs, the real question is straightforward: Does the current price still leave enough potential upside to justify the risk from this point?

Most Popular Narrative: 6% Undervalued

Quest Diagnostics last closed at $233.07, while the most followed narrative places fair value at about $247.40, using a 7.24% discount rate and a detailed view of future earnings power.

The continuing shift toward preventive healthcare and wellness, supported by Quest Diagnostics’ roughly US$300 million consumer business that is growing at about 30% and is expected by management to grow more than 20% annually over the next 3 to 5 years with margins above the corporate average, is setting up a larger recurring revenue base and higher earnings contribution from cash-pay testing.

What is behind that consumer and preventive care story 19 investors see Quest Diagnostics as 6% undervalued.

Result: Fair Value of $247.40 (UNDERVALUED)

Still, the narrative on Quest Diagnostics can crack if Medicare reimbursement cuts bite harder than expected or if wage inflation and automation costs erode those margin goals.

Find out about the key risks to this Quest Diagnostics narrative.

Next Steps

Sentiment around Quest Diagnostics is mixed, with both clear concerns and real bright spots. Act while the data is fresh and form your own take by reviewing the 3 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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