5 Value Stocks to Buy According to Billionaire Paul Tudor Jones

3. Quest Diagnostics Incorporated (NYSE:DGX)

Stake Value of Tudor Investment Corp : $4.3 million 

Number of Hedge Fund Holders: 36

PE Ratio: 10.29    

Quest Diagnostics Incorporated (NYSE:DGX) provides diagnostic testing services. The stock has benefited from the rise in COVID-19 testing volumes as a new variant of the virus sweeps the globe. Since the new variant is still somewhat “novel” with regards to vaccine protection, this boom for Quest is expected to last well into 2022. The firm recently raised guidance numbers to reflect this. The stock is a favorite of value investors since the company has great pricing power in relation to scale. It beat market estimates on earnings per share and revenue for the third quarter by $1.31 and $250 million respectively. 

Quest Diagnostics Incorporated (NYSE:DGX) has also been pursuing acquisitions as it looks to shore up long-term growth on the back of solid COVID-19 revenues. One of these is Mercy Health, a laboratory service business. Investment advisors like Mizuho, Wells Fargo, and Deutsche Bank are all constructive on the company, along with hedge funds like AQR Capital Management that owns 822,434 shares worth more than $119 million in Quest.  

In its Q4 2020 investor letter, Davis Funds, an asset management firm, highlighted a few stocks and Quest Diagnostics Incorporated (NYSE:DGX) was one of them. Here is what the fund said:

“Within healthcare, our largest position is Quest Diagnostics, a leader in independent lab testing and diagnostics. Quest offers its lab services at a fraction of the cost of hospital labs, which constitutes a strong cost-savings value proposition to new and existing customers. It is not surprising that by virtue of the value Quest creates, the company is increasingly serving as an outsource partner to hospitals and healthcare networks across the U.S. We believe Quest’s market is very sticky and only getting larger. The cost savings accruing to Quest’s customers should bode well for the long-term success of the business.”