Why Express Scripts Looks Healthy Long-Term

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

$46.9 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 844 members who have rated Express Scripts believe the stock will outperform the S&P 500 going forward.

Late last month, one of those bulls, All-Star NovaTodd, succinctly summed up the bull case for our community:

Accounting for the recent Medco acquisition, Express Scripts now does business with ~95% of retail pharmacies in the U.S., and possesses significant bargaining power in this relationship (see the Walgreen fiasco for evidence of this). They also have about 60% market share in the mail-order prescriptions business, fertile ground for future growth. Favorable demographic shifts, the closing of the "Medicare donut hole" and a recent share repurchase authorization are just a few more reasons this company is a long term winner.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong 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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Related Tickers

11/25/2014 4:00 PM
ESRX $81.52 Up +0.41 +0.51%
Express Scripts CAPS Rating: ****
AET $86.61 Down -0.33 -0.38%
Aetna, Inc. CAPS Rating: ****
CI $101.90 Down -0.50 -0.49%
Cigna Corporation CAPS Rating: ****
HUM $137.69 Down -2.15 -1.54%
Humana, Inc. CAPS Rating: ***

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