| Stock (Symbol) | Stock Price | |
Express Scripts (ESRX) |
$55 |
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| Data is as of | Expected to Report | Sector |
April 17, 2011 |
Apr 25 |
Healthcare |
| Sharek’s Take | ||
 Express Scripts is stuck in neutral as other healthcare stocks burst higher. In fairness, most of the move higher for helthcare is in other areas — drugs, HMOs and senior living — but Catalyst Health Solutions (CHSI) is hot while ESRX is not. I love ESRX for the long-run, its just not going anywhere right now.
Last year ESRX purchased NextRx from Wellpoint (WLP). NextRx customers were big users of brand-name drugs and ESRX will tryo to push them to more profitable generics. This process will help grow profits for the next two years. |
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| One-Year Chart | ||
 This one-year chart is really nice. Wow, profits have been great the past two quarters and estimates of mid-20s growth the next 6-months is good too. A P/E of only 17 makes these shares undervalued. |
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| Earnings Table | ||
 Profits grew 45% as sales expanded 38%, mainly from NextRX. ESRX used to grow revenue in the high single digits.
The company beat by a penny and has now either met or beat by a penny the last four quarters (it beat by 8 cents five quarters ago, before splitting 2-for1). Annual Profit Estimates barely budged. This stock isn’t timely. Quarterly estimates show solid high 20% growth ahead. But since these numbers didn’t increase, the stock is stuck in neutral. |
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| Fair Value | ||
 ESRX has solid upside to its 2011 and 2012 Fair Values. As usual, this stock is overlooked and underappreciated by investors. |
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| Ten-Year Chart | ||
 Express Scripts is one of the best stocks to buy-and-hold. The stock’s grown at a rate of 27% a year during the decade. Although the stock is stuck in neutal in the short-term, ESRX is clearly trending higher long-term. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
14 of 20 |
Express Scripts has solid numbers but the stock is stuck in neutral for the time being. Right now tech stocks and conservative industrial names are more timely.
ESRX is ranked 14 of 20 in the Growth Portfolio Power Rankings. This stock was sold from the Aggressive Growth Portfolio this month because I’m trying to ride the market’s momentum. |
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Aggressive Growth Portfolio
N/A |
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