| Stock (Symbol) | Stock Price | |
Catalyst Health Solutions (CHSI) |
$61 |
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| Data is as of | Expected to Report | Sector |
March 7, 2012 |
May 4 |
Healthcare |
| Sharek’s Take | ||
 Catalyst Health Solutions (CHSI) has jumped 17% so far this year (barely more than two months in). Normally a 17% move in a stock isn’t enough to make me like the stock less, but in this case CHSI doesn’t have the earnings growth to keep the stock moving upward. CHSI is at the top of its trading range and upside to Fair Value is limited. It’s still a good buy-and-hold and holds upside for investors willing to wait a year to get some capital appreciation, but those with profits in the stock might consider trimming their position as the stock market is high and cash could be useful later in the year. |
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| One-Year Chart | ||
 Here’s the one-year chart of this stock. Everything I see shows low-twenties: Profit growth, P/E, estimated Long Term Growth Rate. Plus, the chart is messy. I can’t confident CHSI will break out to new highs. I’m just not feeling much upside. |
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| Earnings Table | ||
 Profit growth was 23% last quarter, revenue growth was 38%. Sales growth was partially due to CHSI acquiring Walgreen’s phamacy benefit management business last year.CHSI beat by 2 cents last quarter. This company often lowers guidance when it signs new customers (and takes it on the chin in the beginning to make money in the long-term). Annual Profit Estimates declined slightly. CHSI has initiated a program called Invest Now which will expand sales and product development. This initiative should pay off in late-2012 early-2013. Quarterly estimates look good for the next two quarters, then growth is set to decline into the single digits. I’m not concerned with the slow profit growth, it should be temporary and I doublt it will hurt the stock. |
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| Fair Value | ||
 CHSI is a fine stock. It has performed well for a decade and deserves a 25 P/E. The stock is around its Fair Value now. |
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| Ten-Year Chart | ||
 Catalyst Health Solutions was formerly named HealthExtras (HLEX). I originally purchased HLEX in the Growth Portfolio at $14 on 5/4/2004.The ten-year chart shows shows CHSI has compounded at 32% a year. I think this will still be a 25% grower in the future. 2012’s growth looks light at this time. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
15 of 19 |
Catalyst Health Solutions is around 10% away from its Fair Value and really lacks a catalyst to push it up a whole lot more. This long-term winner is a great buy and hold stock but lacks upside for fast-money investors. CHSI is ranked 15th in the 19 stock Growth Portfolio Power Rankings. CHSI isn’t in the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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