Is it time to jump back into Quest Diagnostics (NYSE: DGX)?

Quest Diagnostics, which provides laboratory services to roughly 50% of the nation's doctors and hospitals, fell out of favor after it lost a large client, amid building price pressure.

Slowing growth, and an above-average sector valuation also were data points offered by those making the bearish case.

The bullish case, on the other hand, argues that Quest's recent cost cutting initiatives, strong cash flow, and growing demand for sophisticated medical tests (bolstered by that old standby, the aging Baby Boomer generation) suggest solid long-term growth prospects for DGX. Quest is trading around $55 with a P/E of 19.

(Note: Technical analysis agnostics stop reading here. All others, continue.)

From a technical analysis standpoint, Quest's chart appears to have formed a double-bottom around $47.90 in March/April and May/June.

Investment Category: Quest is a moderate-risk stock not suitable for low-risk investors. The Reuters 2007 and 2008 earnings per share consensus estimates for DGX are $2.87 and $3.25, respectively.

Quest (DGX): On the comeback trail? originally appeared on BloggingStocks on Fri, 24 Aug 2007 16:32:00 EST. Please see our terms for use of feeds.

Wall Street's IPO/Syndicate market remains in summer vacation mode, with no pricings expected for the remainder of the week of July 9, 2007.

If any deals are announced later in the week, we'll publish an update here on bloggingstocks.com and on The Fly blog.

IPO & secondary preview -- Week of July 9, 2007 originally appeared on BloggingStocks on Mon, 09 Jul 2007 15:45:00 EST. Please see our terms for use of feeds.