Does the reason you own Quest Diagnostics Inc. still hold?
Review the position using today's evidence. Identify what still supports it, what has changed, and what deserves another decision.
Price as of Nov 13, 2026, 9:01 AM UTC (polygon last daily bar) · Evidence through Nov 13, 2026
The current case for continuing to hold
The stored model values Quest Diagnostics Inc. at $174.14 per share against $259.65. The case rests on the conditions below.
| Reason to hold | Supporting evidence | Contrary evidence | Condition to review |
|---|---|---|---|
| Revenue growth (yr 1): 3.74%Contradictory evidence requires review | Trailing 4-year revenue CAGR of 3.7%, faded toward terminal growth over 5 years. | Labcorp lifts FY26 guide but flags $125M 2027 PAMA Medicare fee cut | Re-underwrite if revenue growth, margins, or the cost of capital diverge materially from the stored assumptions. |
| Operating margin (steady-state): 13.96%Supported by the reviewed evidence | Anchored to mean operating margin of 14.0% across the last 4 reported periods. | None in the last 45 days | Re-underwrite if revenue growth, margins, or the cost of capital diverge materially from the stored assumptions. |
| Discount rate (WACC): 7.98%Supported by the reviewed evidence | CAPM baseline: 4.98% risk-free + β0.30 × 5.5% ERP = 7.98%. | None in the last 45 days | Re-underwrite if revenue growth, margins, or the cost of capital diverge materially from the stored assumptions. |
What changed since the previous review?
- Nov 13, 2026 · model $174.14 vs price $259.65 · discount rate 7.98% · Overvalued
- Nov 13, 2026 · Labcorp lifts FY26 guide but flags $125M 2027 PAMA Medicare fee cut
- Nov 13, 2026 · Labcorp raises FY guidance but flags $125M Medicare PAMA fee headwind in 2027
Review your holding.
The observation that deserves your attention
Revenue growth (yr 1): contradictory evidence requires review.
Evidence to inspect: 10-yr UST (risk-free) (FRED DGS10); Equity beta (vs SPY, 1y) (bounded from -0.07 (252 days)); Equity risk premium (Damodaran (institutional consensus)).
Make your next review start with what changed.
Save your reasons for holding, the assumptions they depend on, and the conditions you want monitored. When relevant evidence changes, reopen the position with the previous and revised cases side by side.
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