Express Scripts (ESRX): Health Care's Featured Stock Of The Day

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 Care sector higher today making it today's featured health care winner. The sector as a whole closed the day up 0.3%. By the end of trading, Express Scripts rose 66 cents (1.1%) to $58.46 on average volume. Throughout the day, 5.4 million shares of Express Scripts exchanged hands as compared to its average daily volume of 5.8 million shares. The stock ranged in a price between $57.72-$58.56 after having opened the day at $58.18 as compared to the previous trading day's close of $57.80. Other companies within the Health Care sector that increased today were: Optimer Pharmaceuticals ( OPTR), up 19.2%, Obagi Medical Products ( OMPI), up 16.1%, Idera Pharmaceuticals ( IDRA), up 11.4%, and Astex Pharmaceuticals ( ASTX), up 10.5%.
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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. Express Scripts has a market cap of $47.16 billion and is part of the health services industry. The company has a P/E ratio of 32.2, above the S&P 500 P/E ratio of 17.7. Shares are up 7% year to date as of the close of trading on Monday. 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 negative front, Spherix ( SPEX), down 13.2%, Star Scientific ( STSI), down 10.7%, LCA-Vision ( LCAV), down 8.6%, and Affymax ( AFFY), down 8.1%, were all laggards within the health care sector with Community Health Systems ( CYH) being today's health care sector laggard.

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

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