| Stock (Symbol) | Stock Price | |
Express Scripts (ESRX) |
$89 |
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| Data is as of | Expected to Report | Sector |
August 14, 2015 |
Oct 26 – Oct 30 |
Healthcare |
| Sharek’s Take | ||
 Pharmacy Benefit manager (PBM) Express Scripts is a nice selection for conservative investors. My notes show ESRX has grown profits each year since 1996, and I’ve owned ESRX since 2001 when I first purchased it for investors at $7 per share. Although sales growth has been flat for a couple of years, the company still grows profits in the low-teens. Growth is obtained by (1) management buying back lots of stock (2) sales reps switching customers from low-margin brand name drugs to high-margin generics and (3) ESRX occasionally acquiring another PBM. ESRX is currently selling around its 2015 Fair Value of $88, but momentum is positive and this low-risk healthcare stock is a safe selection during these turbulent market times we are currently in. |
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| One-Year Chart | ||
 Good looking one-year chart. This stock is usually a bit undervalued, not anymore. The P/E of 16 is what ESRX is really worth. Note analysts have their estimated long-term growth rate oat 13%, which sounds about right. |
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| Earnings Table | ||
 Express Scripts grew sales 1% last qtr and profits jumped 17%.The company beat the street by 4 cents, but usually comes in around what analysts expect. Annual Profit Estimates ticked up slightly. Quarterly profits estimates show double-digit growth into 2016. |
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| Fair Value | ||
 ESRX is fairly valued at this time with 10% upside to next year’s Fair Value. |
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| Ten-Year Chart | ||
 Always one of the most beautiful ten-year charts, though notice profit growth has slowed to 13% the past two years. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
21 of 24 |
Express Scripts is a fine choice for conservative investors who are looking for safe stocks that have the ability to provide double-digit returns. But since the stock is fairly valued here, growth investors may wish to look elsewhere in search of better growth prospects. ESRX ranks 21st of 24 stocks in the Growth Portfolio Power Rankings. This stock’s not in the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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