Within the fast-growing diagnostics testing market, Hologic HOLX and Quest Diagnostics DGX stand out as two distinguished gamers, every with its personal area of interest. Hologic focuses on ladies’s well being, offering a variety of molecular diagnostics and cytology merchandise for cervical, sexual and vaginal testing, in addition to for a number of acute respiratory infections. Then again, Quest Diagnostics delivers inexpensive diagnostic testing insights and companies for patrons throughout the healthcare ecosystem, together with physicians, hospitals, well being plans and authorities companies. Let’s discover out which one in all them at present deserves a spot in your portfolio.
12 months thus far, shares of Hologic have risen 3.7%, whereas DGX shares have rallied 25.7%.
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Optimistic Traits for Hologic
Energy in Breast Well being: The phase returned to progress within the fourth quarter of fiscal 2025, pushed by sturdy U.S. gross sales execution, the inclusion of Endomagnetics and contribution from interventional merchandise. The bigger share of revenues now comes from recurring service contracts tied to Hologic’s international put in base of gantries, offering steadier progress than gantry gross sales. On the innovation aspect, Hologic is ready to commercially launch the Envision Mammography Platform this yr, providing sufferers a high-speed 3D mammogram with an industry-leading 2.5-second scan time.
GYN Surgical Momentum: Inside this, Myosure continues to realize extra market share internationally than in the US, underscoring the huge untapped markets the place demand for minimally invasive choices for treating uterine polyps and fibroids stays excessive. NovaSure has constantly delivered double-digit progress in worldwide markets, primarily Europe, which is principally attributed to its go-direct technique and improved reimbursement in sure European nations. Hologic acquired Gynesonics, which bolstered its fibroid remedy portfolio and contributed $22.4 million in fiscal 2025. Fluent fluid administration programs are additionally contributing to the upper demand.
Molecular Diagnostics Resilient: In fiscal 2025, the enterprise benefited from greater gross sales volumes of the BV/CV assays, Hologic’s second largest globally. The corporate is strongly appearing on its huge U.S. vaginitis market alternative by driving consciousness and securing reimbursement for this high-throughput check. The Panther Fusion portfolio of respiratory assays has seen sturdy traction as properly. Final month, Hologic secured FDA Clearance and CE Mark for the Panther Fusion Gastrointestinal Bacterial and Expanded Bacterial Assays. Additionally, Biotheranostics is a large alternative, because of the sturdy uptake of its Breast Most cancers Index check.
Tailwinds Supporting DGX
Energy in Superior Diagnostics: The corporate drives progress throughout its buyer channels by way of fast-growing, superior diagnostics in 5 key scientific areas — superior cardiometabolic, autoimmune, mind well being, oncology and girls’s and reproductive well being. Demand for the Quest AD-Detect blood check for Alzheimer’s greater than doubled within the third quarter of 2025. The corporate additionally earned FDA breakthrough gadget designation for Haystack MRD, a check for assessing early threat of most cancers recurrence. Additionally, its analyzer autoimmune resolution is seeing sturdy progress as major care physicians use it to direct high-risk sufferers to specialty care.
Contributions From Acquisitions: Quest Diagnostics’ acquisition technique focuses on purchases of accretive hospital outreach and impartial labs.In August, it acquired scientific testing property from Fresenius Medical Care, positioning it to supply lab testing utilized in dialysis supply to impartial U.S. dialysis clinics. In 2024, the corporate accomplished acquisitions for an combination buy worth of $2.2 billion, together with choose outreach laboratory property from Allina Well being and OhioHealth, in addition to the outreach laboratory companies enterprise of College Hospitals, which every serve suppliers and sufferers in Ohio.
Concentrate on Operational Excellence: Quest Diagnostics is gaining from its Invigorate program, which incorporates structured plans to drive financial savings and enhance productiveness throughout the worth chain. This system targets 3% in annual price financial savings and productiveness enhancements. The corporate additionally continues to deploy automation and AI applied sciences to enhance high quality, service, effectivity and the workforce expertise. In September, Quest Diagnostics introduced Epic as its know-how accomplice for Undertaking Nova — a brand new initiative to modernize its programs structure and cut back IT prices over the long run.
Worth Targets for HOLX and DGX
Primarily based on short-term worth targets by 14 analysts, the typical worth goal for Hologic involves $77.14, implying a 3.02% enhance from the final shut.
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Primarily based on short-term worth targets by 17 analysts, the typical worth goal for Quest Diagnostics of $198.76 implies a 3.33% upside from the final shut.
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HOLX and DGX’s Valuation
Hologic trades at a ahead five-year price-to-sales (P/S) of three.87X, decrease than its median however above Quest Diagnostics’ P/S of 1.87X. Each HOLX and DGX carry a Worth Rating of B.
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Endnote on HOLX and DGX
Each firms maintain a stable footing with distinct benefits. Hologic’s power throughout its divisions continues to gas progress, which current buyers will proceed to learn from. Quest Diagnostics is constructing momentum for its increasing Superior Diagnostics portfolio, whereas acquisitions stay a progress driver as properly. Nevertheless, primarily based on spectacular YTD efficiency and low cost valuation, Quest Diagnostics seems to be the extra compelling choice.
Each Hologic and Quest Diagnostics carry a Zacks Rank #3 (Maintain). You’ll be able to see the entire checklist of at the moment’s Zacks #1 Rank (Robust Purchase) shares right here.
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Quest Diagnostics Integrated (DGX) : Free Inventory Evaluation Report
Hologic, Inc. (HOLX) : Free Inventory Evaluation Report
This text initially revealed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
