Quest Diagnostics’ DGX Haystack MRD test recently received approval from the New York State Department of Health's (“NYSDOH”) Clinical Laboratory Evaluation Program (“CLEP”) for use in identifying residual or recurring disease in patients with a range of solid tumor cancers.
This development is expected to boost the company’s oncology arm.
Likely Trend of DGX Stock Following the News
After the announcement, DGX shares edged up 3%, closing at $203.11 yesterday.
The company continues to build its presence in blood-based MRD testing. In January 2026, new research presented at the ASCO Gastrointestinal Cancers Symposium highlighted the strong clinical value of Quest Haystack MRD in monitoring colorectal cancer. DGX also launched the Flow Cytometry MRD blood test for myeloma. Henceforth, we expect the latest approval to maintain a positive market sentiment toward the stock in the upcoming days.
Quest Diagnostics boasts a market capitalization of $22.48 billion at present. The Zacks Consensus Estimate for 2026 earnings suggests an 8.8% year-over-year increase and the same for revenues implies 7.2% growth. The company beat on earnings in each of the trailing four quarters, delivering average surprise of 3.5%.
About DGX’s Haystack MRD
Haystack MRD is a tumor-informed, next-generation MRD test that detects ultralow levels of ctDNA to uncover residual or recurrent disease with exceptional sensitivity and specificity. Haystack MRD was designed to give oncologists the confidence to detect residual disease earlier, identify recurrence before it becomes clinically apparent, and help evaluate patient response to treatment.
The FDA granted Haystack MRD the Breakthrough Device Designation in 2025 for use in Stage II colorectal cancer. The test was developed under CLIA regulations and has been available for clinician ordering in 49 states and the District of Columbia since late 2024.
Importance of NYSDOH’s Approval of Haystack MRD
New York maintains a highly rigorous clinical laboratory oversight program, requiring formal technical review and approval of laboratory developed tests before they may be offered to patients in the state. With this approval, Haystack MRD is now authorized for patient testing in all 50 states of the United States. New York's approval is another proof point for Haystack MRD's quality and technical sophistication.
Clinical Evidence for Haystack MRD
Haystack MRD's clinical utility has been demonstrated in rigorous investigational settings, including the landmark study of non-operative management of patients with locally advanced mismatch repair-deficient (dMMR) solid tumors, which was published in The New England Journal of Medicine in May 2025. In that study, ctDNA testing, using Haystack MRD, was found to be a "reliable liquid biopsy surrogate" that identified clinical complete response at a median of 1.4 months compared to more than 6 months using imaging methods.
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Industry Prospects Favor DGX
Per a report by Grand View Research, the global MRD testing market size is projected to reach $4.50 billion by 2030, at a CAGR of 10.1% from 2025 to 2030. The market for MRD is driven by rising cancer incidence and prevalence, technological advancements in diagnostic tools and integration with personalized medicines.
DGX Stock Price Performance
Over the past year, DGX’s shares have gained 13.7% compared with the industry’s 8.9% growth.
DGX’s Zacks Rank and Other Key Picks
Quest Diagnostics currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Globus Medical GMED, Integra LifeSciences IART and Phibro Animal Health PAHC.
Globus Medical has an earnings yield of 5.5%, well ahead of the industry’s negative 3% yield. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 26.3%. The company’s shares have rallied 43.8% against the industry’s 4.8% decline over the past year.
GMED carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Integra LifeSciences, carrying a Zacks Rank #2 at present, has an earnings yield of 16% against the industry’s negative 3% yield. Shares of the company have gained 22.8% compared with the industry’s 4.8% growth. IART’s earnings topped estimates in each of the trailing four quarters, the average surprise being 16.8%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, has an earnings yield of 9.2% compared with the industry’s 2.8% yield. Shares of the company have climbed 43.1% against the industry’s 27.9% decline. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 16.3%.
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Quest Diagnostics Incorporated (DGX): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).