Quest Diagnostics is a provider of clinical diagnostic services that help to identify and treat disease and improve healthcare management. The company is based in Secaucus, New Jersey; the stock is a component of the S&P 500.

Despite volatile headlines, price action has tightened up since mid-January. For the S&P 500 (SPX), price is sitting in the top half of a range going back to early November. While certainly not textbook or picture perfect, the index could be tracing out a complex and non-typical bullish cup-with-handle formation. To complete the pattern, a strong break above the all-time closing high of 6,119 is needed -- preferably with some immediate follow-through action. The current trading range is about 355 points wide, so a breakout could open the door for an initial measured move to the 6,300 area and possibly higher. Since mid-January, the price range for the SPX has constricted to about 200 points and some of the short- to intermediate-term moving averages have started to tighten. Price at the top of a range along with slim volatility often is a bullish sign that an index or individual stock is setting up for a breakout move. The SPX also is in a favorable spot based on price channels and volatility bands. On the daily chart, price lies between the middle and upper Bollinger Bands and is in the same spot regarding the 20-day price channels. On the weekly chart, the SPX has been trending between the middle and upper weekly Bollinger Bands and between the middle and upper 20-week price channels on a closing basis since November 2023. The QQQ has seen less strength, trading between the weekly Bollinger Bands and weekly price channels since early September.

Quest Diagnostics is a leading independent provider of diagnostic testing, information, and services in the US. The company generates over 95% of its revenue through clinical testing, anatomic pathology, esoteric testing, and substance abuse testing with specimens collected at its national network of roughly 2,300 patient service centers, as well as multiple doctors offices and hospitals. The firm also runs a much smaller diagnostic solutions segment that provides clinical trials testing, risk-assessment services, and information technology solutions.

Management's ability to "raise guidance" can often be a catalyst for market-beating returns for specific stocks in the quarters ahead. The third-quarter earnings season is wrapping up, with blended earnings (actual results and the consensus for those still to report) showing a year-over-year gain of 9%, according to Refinitiv. Leading the outperformance were strong gains in Communication Services earnings, up 26%. On the flipside, Energy is performing the worst, down 25%. Our analysts are always on the lookout for companies that boost their outlooks during earnings season. The following is a partial list of companies at which management raised guidance during the 3Q24 EPS reporting season. All are BUY-rated in the Argus Fundamental Universe of Coverage. We like this theme, as it crosses numerous industries and generates a robust list of potential portfolio candidates.