PRINT
EMAIL
COMMENT
BUZZ UP
DIGG THIS- Ask Kim - How to Minimize Long-Term-Care Premiums
- Fund Watch - Going Abroad for Dividends
- Starting Out - Four Financial Rookie Mistakes
- Value Added - Why I Would Avoid Index Funds
- Cash in Hand - Preferreds: A Big Gamble
- Money Smart Kids - Financial Literacy for the Whole Family
- Drive Time - Don't Count on Cash for Clunkers
- On the Job - Casting Your Lot With China
- Tax Tips - Tax Breaks for Heroes
- More
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
Reprint Article
