Here’s Why Davis Funds Became Bullish Quest Diagnostics (DGX)

Davis Funds, an investment management firm, published its “Davis Opportunity Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. In the year-to-date period through July 31, Davis Opportunity Fund returned 23.32%, outperforming the S&P 1500 Index’s 18.07% return. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Davis Opportunity Fund, in its Q3 2021 investor letter, mentioned Quest Diagnostics Incorporated (NYSE: DGX) and discussed its stance on the firm. Quest Diagnostics Incorporated is a Secaucus, New Jersey-based clinical laboratory company with a $19.2 billion market capitalization. DGX delivered a 31.79% return since the beginning of the year, while its 12-month returns are up by 27.39%. The stock closed at $157.06 per share on December 03, 2021.

Here is what Davis Opportunity Fund has to say about Quest Diagnostics Incorporated  in its Q3 2021 investor letter:

“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.”

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Based on our calculations, Quest Diagnostics Incorporated (NYSE: DGX) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. DGX was in 36 hedge fund portfolios at the end of the third quarter of 2021, compared to 31 funds in the previous quarter. Quest Diagnostics Incorporated (NYSE: DGX) delivered a 0.78% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.