| Stock (Symbol) | Stock Price | |
Express Scripts (ESRX) |
$70 |
|
| Data is as of | Expected to Report | Sector |
May 23, 2014 |
Jul 28 – Aug 01 |
Healthcare |
| Sharek’s Take | ||
 Express Scripts is going through a slow period right now due to bad winter weather causing lower prescription volumes and also new clients who were set to begin working with ESRX this year have pushed things back to next year. The stock has sold off the past few months, but has recently rebounded. On a historical basis, 14 times earnings is very cheap for this stock and I feel when we look back a year from now we will be wishing we had bought more shares. |
||
| One-Year Chart | ||
 Profit growth has been weak for a while but synergies from recently acquired Medco will help boost profits the second half of the year. I like the P/E of 14, this stock is a good buy here. |
||
| Earnings Table | ||
 Sales fell 9% last quarter because Express Scripts lost UnitedHealth’s business because its doing the PBM business itself now. Profits were flat year-over-year.ESRX missed by couple cents due to the lower prescription volumes. Annual Profit Estimates fell some. This earnings table has a lot of red in it Profit growth looks to pick up two quarters from now, but ESRX could lower estimates again. |
||
| Fair Value | ||
 This stock is a good value here, the only thing is profit growth will have to resume for this stock to get that 17 P/E. I think things will be fine next year. |
||
| Ten-Year Chart | ||
 The ten-year chart shows a better view of this stock over the long-run. Notice ESRX has pulled back many times, only to push back to new highs. This used to be a +20% grower, now it’s around a 15% one. |
||
| Power Ranking | Bottom Line | |
Growth Portfolio
22 of 25 |
Express Scripts is going through a slow growth period, but this lower stock price is good in a way because the company can buy back shares at a cheaper price. ESRX should go op around the end of the year, but has little momentum now. ESRX ranks 22nd in the 25 stock Growth Portfolio Power Rankings. It is not a good selection for the Aggressive Growth Portfolio. |
|
Aggressive Growth Portfolio
N/A |
||
