Quest Diagnostics Inc. DGX, a leading global provider of clinical laboratory services, recently announced the launch of QuestDirect. It is a new Patient-Initiated Testing service to help users order certain lab tests without a physician's order. The service has been initiated in the U.S. states of Colorado and Missouri.
After the success in Arizona and Oklahoma, the company is piloting its QuestDirect program in Colorado and Missouri as well. While the tests can be ordered online, customers will be able to get the lab results through MyQuest by Care360. The MyQuest app is used by more than three million people to track, store and share their results and health information through a smart phone, tablet or desktop computer. Prices for each testing set are provided on the order form.
Through the pilot program, Quest Diagnostics aims to expand its consumer offering through Patient-Initiated Testing services. Notably, the company’s laboratories are certified by the College of American Pathologists, the laboratory industry's gold-standard accrediting agency, a defining distinct characteristic of Quest's outstanding quality and proven testing processes.
Management claims that the QuestDirect program offers consumers a necessary list of tests that will give them the insight into their personal health and well-being. It also gives them the freedom to order lab tests without a clinician’s instruction. The company believes that the modern world consumers want most accurate and latest diagnostic information to actively manage their health.
As per a Transparency Market Research report, the global clinical laboratory services market is expected grow at a CAGR of 5.8% to $241.37 billion in 2019. Quest Diagnostics is currently refocusing on its core diagnostic information services business to gain traction in this growing market. In the recent past, the company offered patients in Arizona and Oklahoma with direct access to lab testing through its joint venture partners Banner Health and Integris Health.It further expanded easy access to testing services through its recent collaboration with Safeway providing laboratory testing services at 12 Safeway locations in five states. In August, Quest Diagnostics announced a partnership with Ancestry.com to offer testing services on behalf of AncestryDNA.
Zacks Rank & Key Picks
Quest Diagnostics currently carries a Zacks Rank #3 (Hold). Better ranked medical stocks are NxStage Medical Inc. NXTM, Baxter International Inc. BAX and Bovie Medical Corporation BVX. NxStage Medical and Baxter International sport a Zacks Rank #1 (Strong Buy) while Bovie Medical carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical surged 23.4% over the last one year compared to the S&P 500’s 5.5% over the same period. The company has a four-quarter average positive earnings surprise of 50.00%.
Baxter International rallied 21.4% over one year, much higher than the S&P 500’s 5.5%. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 119.4% gain in the past one year, way better than the S&P 500’s 5.5%. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
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