Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Express Scripts as such a stock due to the following factors:
- ESRX has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 3.43 mentions/day.
- ESRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $392.1 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on ESRX:
Express Scripts Holding Company provides a range of pharmacy benefit management (PBM) services primarily in the United States and Canada. The company offers healthcare management and administration services on behalf of its clients. ESRX has a PE ratio of 32.0. Currently there are 15 analysts that rate Express Scripts a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Express Scripts has been 3.7 million shares per day over the past 30 days. Express Scripts has a market cap of $58.7 billion and is part of the health care sector and health services industry. The stock has a beta of 0.91 and a short float of 2.4% with 3.89 days to cover. Shares are up 13.8% year-to-date as of the close of trading on Thursday.
rates Express Scripts as a
. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- EXPRESS SCRIPTS HOLDING CO has improved earnings per share by 44.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, EXPRESS SCRIPTS HOLDING CO increased its bottom line by earning $2.31 versus $1.85 in the prior year. This year, the market expects an improvement in earnings ($4.88 versus $2.31).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Providers & Services industry. The net income increased by 36.5% when compared to the same quarter one year prior, rising from $426.70 million to $582.30 million.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The debt-to-equity ratio is somewhat low, currently at 0.73, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.45 is very weak and demonstrates a lack of ability to pay short-term obligations.
- ESRX, with its decline in revenue, underperformed when compared the industry average of 19.9%. Since the same quarter one year prior, revenues slightly dropped by 0.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Express Scripts Ratings Report.