7 Undervalued Stocks in an Overvalued Market - 1 of 7

#1 - Quest Diagnostics (NYSE:DGX)

The first stock on this list is Quest Diagnostics (NYSE: DGX) which is up 10.88% in 2021. One way to look at undervalued stocks is to compare their price-to-earnings (P/E) ratio to others in its sector. Currently, Quest Diagnostics has a P/E of 10.18 which is significantly lower than the average P/E ratio of 22.9 for the entire Healthcare sector.

Quest was a pandemic winner because it could provide Covid-19 testing. However, that is far from the company’s sole source of revenue. Quest is also involved in providing diagnostic testing that is used to determine custom therapies. This is a growing field that is likely to have a resurgence as doctor-patient interactions return to something more normal.

That’s because Quest is well seeded as a partner with hospitals and health care networks. And its range is expanding. In 2020, Quest acquired Mid America Clinical Laboratories, one of its largest acquisitions ever. This also expanded the company’s service coverage into another state.

About Quest Diagnostics

Quest Diagnostics Incorporated provides diagnostic testing, information, and services in the United States and internationally. The company develops and delivers diagnostic information services, such as routine testing, non-routine and advanced clinical testing, anatomic pathology testing, and other diagnostic information services. Read More 

Current Price

$124.30

Consensus Rating

Hold

Ratings Breakdown

2 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.

Consensus Price Target

$149.90 (20.6% Upside)