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 a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Express Scripts as such a stock due to the following factors:
- ESRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $308.0 million.
- ESRX has traded 7.0 million shares today.
- ESRX is trading at a new lifetime high.
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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. It offers healthcare management and administration services on behalf of its clients. ESRX has a PE ratio of 29.4. Currently there are 13 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 4.9 million shares per day over the past 30 days. Express Scripts has a market cap of $54.8 billion and is part of the health care sector and health services industry. The stock has a beta of 1.60 and a short float of 1.7% with 3.18 days to cover. Shares are up 25.7% 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 reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that ESRX's debt-to-equity ratio is low, the quick ratio, which is currently 0.61, displays a potential problem in covering short-term cash needs.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
- EXPRESS SCRIPTS HOLDING CO has improved earnings per share by 8.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EXPRESS SCRIPTS HOLDING CO reported lower earnings of $1.85 versus $2.52 in the prior year. This year, the market expects an improvement in earnings ($4.32 versus $1.85).
- The net income growth from the same quarter one year ago has exceeded that of the Health Care Providers & Services industry average, but is less than that of the S&P 500. The net income increased by 9.0% when compared to the same quarter one year prior, going from $391.40 million to $426.70 million.
- You can view the full Express Scripts Ratings Report.