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DGX vs LH
Which Stock Would AI Choose? Quest Diagnostics (DGX) vs. Labcorp Holdings (LH) Stock Comparison
Key Takeaways
- Quest Diagnostics (DGX) has delivered stronger recent relative performance, with shares up roughly 31% year to date, outpacing the broader market and its peer group.
- Labcorp Holdings (LH) offers a more diversified business, combining routine diagnostics with a large biopharma drug-development services segment.
- Both companies raised their full-year 2026 guidance following solid quarterly results, driven by volume growth and operating efficiencies.
- DGX currently trades at a higher forward valuation relative to its own history, while LH trades above its five-year median as well.
- Elevated debt and reimbursement pressures remain shared risk factors across the laboratory testing industry.
Introduction
Quest Diagnostics and Labcorp Holdings are the two dominant players in the U.S. clinical laboratory testing market, making a direct stock comparison a natural exercise for healthcare investors. Both companies generate revenue from routine and specialty diagnostic testing, yet their growth strategies and business mixes differ in meaningful ways. Quest Diagnostics focuses heavily on diagnostic information services across physician, hospital, and consumer channels, while Labcorp adds a substantial biopharma laboratory services arm that serves pharmaceutical and biotechnology clients. For traders and long-term investors evaluating sector exposure, relative performance, and market positioning, understanding how these two laboratory leaders diverge offers practical insight into where value and momentum currently reside.
DGX Overview and Recent Performance
DGX, Quest Diagnostics, is one of the largest providers of diagnostic information services in the United States, serving physicians, hospitals, and a fast-growing consumer testing channel through its QuestHealth.com platform. In recent weeks, the stock has sustained strong momentum, gaining roughly 31% year to date and materially outperforming the S&P 500. This advance has been supported by broad-based testing demand, with requisition volume rising in the low double digits and double-digit growth across advanced diagnostics categories such as oncology, cardiometabolic, and autoimmune testing.
Key catalysts have included New York State approval of the Haystack molecular residual disease (MRD) test, which detects trace amounts of cancer DNA after treatment, and expanding collaborations such as the Fresenius Medical Care partnership in kidney care. Management raised its full-year 2026 revenue and earnings-per-share (EPS) guidance following a strong quarter. However, the stock's run has lifted its forward price-to-earnings (P/E) ratio above its five-year median, and elevated long-term debt of more than $5.6 billion remains a consideration for investors.
LH Overview and Recent Performance
LH, Labcorp Holdings, operates two complementary segments: Diagnostics Laboratories, which provides routine and specialty testing, and Biopharma Laboratory Services (BLS), which supports drug development through central laboratories and early development services. This dual structure gives Labcorp exposure to both healthcare utilization and pharmaceutical research-and-development spending. In recent market activity, Labcorp has delivered steady but more modest relative performance, with shares advancing at a slower pace than its main diagnostic rival over the past year.
Recent developments include the announced $722 million acquisition of select laboratory assets from BioReference Health, aimed at expanding clinical, women's health, and urology testing. The company also raised its full-year 2026 guidance after reporting earnings and revenue that exceeded estimates, supported by specialty testing growth in oncology, neurology, and women's health. Labcorp has invested in artificial intelligence (AI), robotics, and digital pathology to improve efficiency. Its forward P/E ratio sits above its five-year median, and its BLS business introduces currency and biopharma-demand sensitivities not present at Quest Diagnostics.
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Head-to-Head Comparison
The clearest contrast between the two companies is business-model diversification. Quest Diagnostics is almost entirely focused on diagnostic information services, making it a purer play on U.S. healthcare testing volumes and pricing. Labcorp, by contrast, pairs diagnostics with a biopharma laboratory services segment, which broadens its revenue base but also exposes it to pharmaceutical client budgets and foreign-exchange swings.
On recent momentum, Quest Diagnostics has shown stronger relative strength, with faster revenue growth and a larger year-to-date share gain. Labcorp has delivered steadier, more diversified growth and has been more aggressive in margin expansion, with adjusted operating margin widening more than a percentage point year over year. Risk profiles differ as well: Quest Diagnostics carries heavier leverage relative to its cash position, while Labcorp faces added complexity from acquisitions integration and international operations. Both face shared pressures from Medicare and private-payer reimbursement policy and cost inflation, which can compress margins even as volumes grow.
Tickeron AI Verdict
Based on observable trend consistency, momentum, and near-term catalysts, Tickeron's AI would likely tilt toward Quest Diagnostics (DGX) in the current environment. The stock's stronger recent relative performance, double-digit volume growth, and expanding advanced-diagnostics pipeline suggest more favorable trend consistency than Labcorp's steadier but slower trajectory. That said, this is a probabilistic assessment rather than a definitive call: Quest Diagnostics' higher valuation and elevated leverage leave less room for execution missteps, while Labcorp's (LH) diversified revenue stream and improving margins could make it the more resilient choice if testing demand softens or reimbursement pressure intensifies. Traders should weigh momentum against valuation and diversification when forming their own view.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is DGX is a Hold and LH is a Buy.
DGX in upward trend: price rose above 50-day moving average on October 20, 2026
DGX moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend. In 36 of 47 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 77%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on DGX as a result. In 65 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 76%.
The Moving Average Convergence Divergence (MACD) for DGX just turned positive on October 15, 2026. Looking at past instances where DGX's MACD turned positive, the stock continued to rise in 27 of 42 cases over the following month. The odds of a continued upward trend are 64%.
Following a +1.71% 3-day Advance, the price is estimated to grow further. Considering data from situations where DGX advanced for three days, in 195 of 311 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 10-day moving average for DGX crossed bearishly below the 50-day moving average on October 01, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 7 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 39%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DGX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 44%.
DGX broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 8 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.509) is normal, around the industry mean (64.450). P/E Ratio (25.045) is within average values for comparable stocks, (2.086). Projected Growth (PEG Ratio) (1.546) is also within normal values, averaging (3.473). DGX's Dividend Yield (0.014) is considerably higher than the industry average of (0.002). P/S Ratio (2.404) is also within normal values, averaging (9.775).
The Tickeron Profit vs. Risk Rating rating for this company is 17 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 29 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 42 (best 1 - 100 worst), indicating steady price growth. DGX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 58 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
LH in upward trend: price rose above 50-day moving average on October 20, 2026
LH moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend. In 25 of 40 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 62%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 06, 2026. You may want to consider a long position or call options on LH as a result. In 58 of 100 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 58%.
The Moving Average Convergence Divergence (MACD) for LH just turned positive on October 08, 2026. Looking at past instances where LH's MACD turned positive, the stock continued to rise in 26 of 52 cases over the following month. The odds of a continued upward trend are 50%.
Following a +1.54% 3-day Advance, the price is estimated to grow further. Considering data from situations where LH advanced for three days, in 191 of 334 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 10-day moving average for LH crossed bearishly below the 50-day moving average on September 25, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 69%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 53%.
LH broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for LH entered a downward trend on October 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 11 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.051) is normal, around the industry mean (64.450). P/E Ratio (26.602) is within average values for comparable stocks, (2.086). Projected Growth (PEG Ratio) (1.206) is also within normal values, averaging (3.473). LH has a moderately high Dividend Yield (0.009) as compared to the industry average of (0.002). P/S Ratio (1.876) is also within normal values, averaging (9.775).
The Tickeron Price Growth Rating for this company is 23 (best 1 - 100 worst), indicating outstanding price growth. LH’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 49 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 65 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
DGX | LH | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 14 | 27 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 8 Undervalued | 11 Undervalued | |
PROFIT vs RISK RATING 1..100 | 17 | 49 | |
SMR RATING 1..100 | 58 | 65 | |
PRICE GROWTH RATING 1..100 | 42 | 23 | |
P/E GROWTH RATING 1..100 | 29 | 61 | |
SEASONALITY SCORE 1..100 | 85 | 85 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
DGX's Valuation (8) in the Servicestothe Health Industry industry is in the same range as LH (11). This means that DGX’s stock grew similarly to LH’s over the last 12 months.
DGX's Profit vs Risk Rating (17) in the Servicestothe Health Industry industry is in the same range as LH (49). This means that DGX’s stock grew similarly to LH’s over the last 12 months.
DGX's SMR Rating (58) in the Servicestothe Health Industry industry is in the same range as LH (65). This means that DGX’s stock grew similarly to LH’s over the last 12 months.
LH's Price Growth Rating (23) in the Servicestothe Health Industry industry is in the same range as DGX (42). This means that LH’s stock grew similarly to DGX’s over the last 12 months.
DGX's P/E Growth Rating (29) in the Servicestothe Health Industry industry is in the same range as LH (61). This means that DGX’s stock grew similarly to LH’s over the last 12 months.
| DGX | LH | |
|---|---|---|
| RSI ODDS (%) | N/A | N/A |
| Stochastic ODDS (%) | 2 days ago 45% | 2 days ago 57% |
| Momentum ODDS (%) | 2 days ago 76% | 2 days ago 58% |
| MACD ODDS (%) | 2 days ago 64% | 2 days ago 50% |
| TrendWeek ODDS (%) | 2 days ago 62% | 2 days ago 58% |
| TrendMonth ODDS (%) | 2 days ago 39% | 2 days ago 54% |
| Advances ODDS (%) | 2 days ago 63% | 2 days ago 57% |
| Declines ODDS (%) | 4 days ago 44% | 22 days ago 53% |
| BollingerBands ODDS (%) | 2 days ago 57% | 2 days ago 51% |
| Aroon ODDS (%) | N/A | 2 days ago 52% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
DGX’s FA Score shows that 3 FA rating(s) are green while LH’s FA Score has 2 green FA rating(s).
- DGX’s FA Score: 3 green, 2 red.
- LH’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
DGX’s TA Score shows that 4 TA indicator(s) are bullish while LH’s TA Score has 4 bullish TA indicator(s).
- DGX’s TA Score: 4 bullish, 4 bearish.
- LH’s TA Score: 4 bullish, 5 bearish.
Price Growth
DGX (@Medical Specialties) experienced а +2.36% price change this week, while LH (@Medical Specialties) price change was +2.02% for the same time period.
The average weekly price growth across all stocks in the @Medical Specialties industry was -3.15%. For the same industry, the average monthly price growth was -6.50%, and the average quarterly price growth was +42.74%.
Reported Earning Dates
DGX is expected to report earnings on Oct 22, 2026.
LH is expected to report earnings on Oct 28, 2026.
Industries' Descriptions
@Medical Specialties (-3.15% weekly)Medical specialties are companies that make equipment used by the health care industry. Equipment manufactured and distributed by these companies include dialysis machines, blood analysis equipment, surgical equipment, dental instruments, and diagnostic tools, among other items. Large companies typically aim to produce and distribute high-quality products across a broad market spectrum. Smaller firms are more likely to specialize in a particular market segment. Due to the industry’s close association with medical treatments, they typically have low sensitivity to macroeconomic fluctuations. Within this industry, Abbott Laboratories, Medtronic Plc and Thermo Fisher Scientific Inc. are some of the companies with multi-billion market capitalizations in the U.S. stock markets.
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DGX and
Correlation & Price change
A.I.dvisor indicates that over the last year, DGX has been closely correlated with LH. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if DGX jumps, then LH could also see price increases.
LH and
Correlation & Price change
A.I.dvisor indicates that over the last year, LH has been closely correlated with DGX. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if LH jumps, then DGX could also see price increases.