Why Express Scripts Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmacy benefit manager Express Scripts (NASDAQ: ESRX  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Express Scripts and see what CAPS investors are saying about the stock right now.

Express Scripts facts

Headquarters (founded)

St. Louis (1986)

Market Cap

$48.0 billion

Industry

Healthcare services

Trailing-12-Month Revenue

$93.9 billion

Management

Chairman/CEO George Paz
CFO Jeffrey Hall

Return on Equity (average, past 3 years)

28.7%

Cash/Debt

$2.8 billion / $15.9 billion

Competitors

Aetna
Cigna
Humana

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 94% of the 840 members who have rated Express Scripts believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, adamlevy, succinctly summed up Express Scripts bull case for our community:

With an aging population that's becoming more reliant on prescription drugs the entire health care sector is poised to gain.

Additionally, Express Scripts stands to gain from the impending patent-cliffs of several blockbuster drugs in 2013 and 2014.

The company also has its foot in the booming specialty drug treatment market, and the purchase of Medco last year increases its position in cancer treatment, which is one of the fastest growing segments.

Finally, Obamacare will increase the number of insured citizens. While most will be through medicare, one of Express Scripts largest clients, WellPoint, is the biggest medicare-based insurer. This means a flood of new customers for Express Scripts.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its perfect five-star rating, Express Scripts may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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