Quest Diagnostic Incorporated – Rare Stock with 30% Upside Oppor

١٨ أغسطس ٢٠٢٢

If you like this idea, please don’t forget to Boost it.

Fundamental Indicators:

• Sector – Healthcare
  
• US Business Cycle Stage – late cycle, when this sector is favourable
  
• Revenue – consistently growing for the past 5 years, with 9% average annual rate
  
• Profits – explosive growth until 2021 and slight reduction in 2022 TTM
  
• Net margin – effective company with 15% margin
  
• P/E – quite low with 10.8 ratio compared to S&P500 with 21 and Healthcare sector with 23
  
• Liabilities - debt ratio is at 0.51 which is within normal limits, Net Debt/ EBITDA is at 1.28 – no problems with debt
  
• Conclusion – highly effective company with low valuation, considering that this is a defensive sector in the late business cycle, it is likely to continue growth to update historic highs
  

Technical Analysis (Elliott Waves):

• Main scenario of this idea suggests that we are still observing development of the global growth cycle which is currently at the stage of completing wave C of 3 in an Ending Diagonal pattern (see higher timeframe graph)
  
• The key elements of this scenario are Contracting Tringle of wave 4 that lasted between 2006 and 2011m which reflects accumulation phase, and the final fifth which is taking a complex shape
  
• This final fifth wave is clearly shaping up by a choppy movement which indicates formation of an Ending Diagonal (see guidelines for Ending Diagonals below)
  
• Waves A and B of the zigzag have already formed and wave C is also near completion with the fifth wave just about to start
  
• This may present a good long opportunity with a target of $174.16 – up to 30% upside
  

This is a higher timeframe to reflect the full history of Quest Diagnostic Incorporated and to provide full wave count:
https://www.tradingview.com/x/Nir9fxBb/

This is the link to the guidelines for Ending Diagonals

What do you think about Quest Diagnostic Incorporated and its short term prospects?
Also let me know if you would like to see other stocks, indices, Forex or Crypto analysed using Elliott Waves. And BOOST this idea if you like it.

Thanks