Express Scripts (ESRX): Today's Featured Health Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Express Scripts ( ESRX) pushed the Health Services industry lower today making it today's featured Health Services laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Express Scripts fell 95 cents (-1.6%) to $58.59 on heavy volume. Throughout the day, 10.2 million shares of Express Scripts exchanged hands as compared to its average daily volume of 5.8 million shares. The stock ranged in price between $58.09-$59.84 after having opened the day at $59.68 as compared to the previous trading day's close of $59.54. Other companies within the Health Services industry that declined today were: Strategic Diagnostics ( SDIX), down 8.3%, Navidea Biopharmaceuticals ( NAVB), down 7.9%, Uroplasty ( UPI), down 7.8%, and Orthofix International N.V ( OFIX), down 4.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Express Scripts Holding Company provides a range of pharmacy benefit management (PBM) services in North America. Express Scripts has a market cap of $48.64 billion and is part of the health care sector. The company has a P/E ratio of 33.2, above the S&P 500 P/E ratio of 17.7. Shares are up 10% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Express Scripts a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates Express Scripts as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year, reasonable valuation levels, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Dynatronics Corporation ( DYNT), up 18.7%, Kips Bay Medical ( KIPS), up 16%, NeuroMetrix ( NURO), up 9.9%, and Addus Homecare Corporation ( ADUS), up 7.7%, were all gainers within the health services industry with DaVita HealthCare Partners ( DVA) being today's featured health services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health services industry could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health services industry could consider ProShares Ultra Short Health Care ( RXD).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Here's How to Invest Like a Billionaire

The Dow Binges on Earnings

Alphabet Slides After a So-So Quarter - 5 Things You Must Know Before the Market Opens