Here are the top-performing technology stocks of 2021

[MongiIG]

Technology stocks have been far from a sure bet since 2021 began its stretch run in mid-November. Inflationary concerns and fears of rising interest rates pushed investors out of software and internet companies, sending scores of prior outperformers into correction territory.

Despite the sell-off and the volatility across wide swaths of the tech industry, investors have made a bundle of money betting on specific companies and stories. Certain areas of the semiconductor market ballooned this year, as demand soared for processors that could speed crypto mining, aid game development and connect more devices to the internet.

 

Fintech, cloud software and cybersecurity had their share of standouts as well, even if buying baskets of those stocks and holding them for the year would not have been a particularly lucrative investment.

Here are the five biggest gainers in 2021 among U.S. tech companies valued at $5 billion or more. The list excludes companies that went public this year. Prices are as of Thursday’s close. CNBC

[Dandeli]

How about Quest Diagnostics and Labcorp?

[MongiIG]

15 hours ago, Dandeli said:

How about Quest Diagnostics and Labcorp?

Hi @Dandeli

Thanks for reaching out.

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

 

Here are three of the most important factors that make the stock of this medical laboratory operator a great growth pick right now.

 

Earnings Growth

Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Quest Diagnostics is 22.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 24.8% this year, crushing the industry average, which calls for EPS growth of 14.6%.

Impressive Asset Utilization Ratio

Asset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

 

Right now, Quest Diagnostics has an S/TA ratio of 0.81, which means that the company gets $0.81 in sales for each dollar in assets. Comparing this to the industry average of 0.78, it can be said that the company is more efficient.

In addition to efficiency in generating sales, sales growth plays an important role. And Quest Diagnostics is well positioned from a sales growth perspective too. The company's sales are expected to grow 11% this year versus the industry average of 10.5%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Quest Diagnostics have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.6% over the past month.

Bottom Line

Quest Diagnostics has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

For more on this article: entrepreneur.com

[MongiIG]

5 minutes ago, MongiIG said:

Hi @Dandeli

Thanks for reaching out.

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.

 

Here are three of the most important factors that make the stock of this medical laboratory operator a great growth pick right now.

 

Earnings Growth

Arguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for Quest Diagnostics is 22.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 24.8% this year, crushing the industry average, which calls for EPS growth of 14.6%.

Impressive Asset Utilization Ratio

Asset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.

 

Right now, Quest Diagnostics has an S/TA ratio of 0.81, which means that the company gets $0.81 in sales for each dollar in assets. Comparing this to the industry average of 0.78, it can be said that the company is more efficient.

In addition to efficiency in generating sales, sales growth plays an important role. And Quest Diagnostics is well positioned from a sales growth perspective too. The company's sales are expected to grow 11% this year versus the industry average of 10.5%.

Promising Earnings Estimate Revisions

Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for Quest Diagnostics have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.6% over the past month.

Bottom Line

Quest Diagnostics has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

For more on this article: entrepreneur.com

For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Quest Diagnostics (DGX) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Medical peers, we might be able to answer that question.

More on this article: nasdaq.com

[MongiIG]

15 hours ago, Dandeli said:

How about Quest Diagnostics and Labcorp?

Hi @Dandeli

Thanks for reaching out.

Global life sciences company Laboratory Corporation of America Holdings (NYSE: LH), popularly known as Labcorp, entered into a definitive agreement to acquire cancer genomics solutions provider, Personal Genome Diagnostics Inc. for $575 million. The deal is likely to close in the first half of 2022.

Following the news, shares of the company declined marginally to close at $301.91 during yesterday’s extended trading session.

Terms of the Deal

Under the terms of the deal, Labcorp will initially pay $450 million in cash and an additional $125 million, subject to the achievement of certain milestones.

Strategic Impact

With this acquisition, Labcorp will gain access to Personal Genome’s advanced cancer genomics technology and subsequently gain a strong foothold in the space. Along with its existing liquid biopsy capabilities, Labcorp’s oncology portfolio will also receive a boost resulting in enhanced offerings for its patients.

Financial Implications of the Deal

Personal Genome is expected to register revenues of about $22 million in 2021 and about $40 million in 2022. Taking this into account, Labcorp expects the acquisition to be slightly dilutive to Labcorp’s adjusted earnings per share over the next couple of years. However, the acquisition will provide returns in excess of its cost of capital by year five.

Management Commentary

CEO of Labcorp, Adam Schechter, said "PGDx’s comprehensive portfolio of next-generation sequencing products will meaningfully add to our breadth of capabilities, in line with our strategic priority to lead in oncology. PGDx’s technology is well positioned in an important segment with strong growth prospects.”

Analyst Ratings

Recently, Mizuho Securities analyst Ann Hynes reiterated a Buy rating on the stock. The analyst, however, raised the price target from $332 to $354, which implies upside potential of 17.3% from current levels.

Wall Street Analysts Ratings is a Strong Buy based on 7 Buys and 1 Hold. The average Labcorp stock price prediction price target of $353.13 implies upside potential of 16.97% from current levels. Shares have gained 48.1% over the past year.

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