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 respected four-star ranking.
With that in mind, let's take a closer look at Express Scripts' business and see what CAPS investors are saying about the stock right now.
Express Scripts facts
|
Headquarters (Founded) |
St. Louis (1986) |
|
Market Cap |
$28 billion |
|
Industry |
Health-care plans |
|
Trailing-12-Month Revenue |
$45 billion |
|
Management | Chairman/CEO George Paz CFO Jeffrey Hall |
|
Return on Equity (Average, Past 3 Years) |
40.3% |
|
Cash/Debt |
$291 million / $4.1 billion |
|
Competitors |
UnitedHealth Group (NYSE: UNH) WellPoint (NYSE: WLP) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 711 members who have rated Express Scripts believe the stock will outperform the S&P 500 going forward. These bulls include All-Star BoiseKen, who is ranked in the top 6% of our community, and troym72.
Just last week, BoiseKen applauded Express Scripts' recent purchase: "They might get knocked down shortterm from the [MedCo Health (NYSE: MHS)] deal, but ... I think they paid a great price for a longterm boost. Generic drugs going off patent along with MHS' individualized medicine and depth of skill make this a winner."
Express Scripts even boasts a solid three-year average return on capital of 18.9%. That's higher than that of industry peers like UnitedHealth (13.1%) and WellPoint (8.7%).
CAPS member troym72 elaborates on the bull case:
Express Scripts is in a great position to take advantage of the aging population which will is in greater and greater need for regular maintenance medications, which falls right into their mail-order strategy. Increasing Revenue and EPS over the last 5 years shows that Express Scripts has the leadership and direction to keep growing for years to come.
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