Quest Diagnostics Inc.'s (NYSE: DGX) sustained growth momentum within the legacy base business is poised to help it grow in the upcoming quarters. Strong progress in the company's highly specialized Advanced Diagnostics offerings is encouraging. Additionally, the cost discipline program, Invigorate, is boosting productivity through automation and AI. However, a debt-laden balance sheet and challenges from fierce competition are concerning for DGX's operations. In the past year, this Zacks Rank #2 (Buy) stock has rallied 11.3% compared with the industry's 13.6% growth and the 19.3% rise of the S&P 500 composite. The renowned provider of diagnostic information services has a market capitalization of $16.62 billion. The company's earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.31%. Let's delve deeper. Tailwinds Growth Momentum in the Base Business Continues: Quest Diagnostics has been experiencing robust volume growth in its core business (excluding Covid Testing), banking on the growth of new physician and hospital customers, a more favorable test mix with increased use of advanced diagnostics, continued strength in healthcare utilization as well as the ongoing return to care. The latest second quarter of 2024 also marked another strong base business growth for Physician Lab Services, driven by overall market growth and share gains on new customer wins. Added to this, the company delivered strong volume and revenue growth from its Medicare Advantage plans. PLS and hospital reference testing have been outpacing both historical trends and market growth projections. Additionally, DGX is making headway with several promising opportunities within its robust M&A ...