Stock Watch
Express Scripts: Prescription for Growth
Despite weakness among some pharmaceutical stocks, shares of Express Scripts are sailing along unfettered.
June 4, 2003
Despite the stagnation of some big-name pharmaceutical stocks recently, shares of Express Scripts (ESRX) are sailing along unfettered.
The company is the third-largest pharmacy benefits manager in North America, and it's "generating buckets of cash," says Richard Jandrain, chief stock strategist for Banc One Investment Advisors. Among Express Scripts' lucrative endeavors are an online pharmacy, mail-order prescriptions and specialty drug packaging services. Most of its services are membership based, and its 50 million subscribers have access to a network of more than 55,000 pharmacies.
Jandrain especially likes the company for its niche business -- and the inherent potential for growth. He considers Express Scripts a good buy for the long haul.
Analysts seem to agree. They're calling for 22% earnings growth, on average, over the next three to five years. Shares trade at 17 times the 2004 earnings estimate of $3.85 per share, which makes Express Scripts look like a pretty good deal for the here and now.
-- Elizabeth Frengel
