| Stock (Symbol) | Stock Price | |
Express Scripts (ESRX) |
$53 |
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| Data is as of | Expected to Report | Sector |
March 7, 2012 |
April 26 |
Healthcare |
| Sharek’s Take | ||
 Express Scripts has made a strong move higher since dipping below $40 in October. But issues about the company’s business are yet to be resolved. The biggest problem is ESRX and Walgreen’s (WAG) couldn’t get together on a deal to allow ESRX customers to fill their scripts at Walgreen’s stores. This stand-off has hurt both companies. Still, ESRX stock has been climbing. For more on ESRX’s problems check out last quarter’s research report titled This Company Has Issues. |
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| One-Year Chart | ||
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| Earnings Table | ||
 Profit growth was 15% last quarter on a 7% rise in sales. ESRX typically makes good profits on slight increases in sales because it moves people into higher profit margin generics.ESRX missed by 3 cents and has been lowering estimates then missing for the past year. Annual Profit Estimates continue to erode. At least this time the rate of decline wasn’t so bad. Quarterly estimates show solid teens growth ahead but these estimates have been declining for three straight quarters. I’m surprised this stock is trending higher. |
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| Fair Value | ||
 I’ll keep my Fair Value P/E at 17. I think the stock has good upside for long-term investors. |
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| Ten-Year Chart | ||
 I purchased ESRX for clients at $7 on 10/1/01 at $7. I’m unlikely to give up now. Even though 2012 looks like a tough year, profit growth is expected to be a robust 19% this year. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
14 of 19 |
Express Scripts is on a nice move higher but the numbers don’t look so hot. ESRX ranks 14th in the 19 stock Growth Portfolio Power Rankings. This is not a candidate for the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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The one-year chart shows a nice uptrend in place. This is a good-looking chart pattern and suggests the stock will continue higherriginally o
