Express Scripts (ESRX) is a pharmacy benefit management company. It’s a very large outfit with more than 30,000 employees and a market value of $56 billion. Last year, Express Scripts bought Medco Health Solutions which had been spun-off by Merck (MRK) ten years ago. Large deals like that are usually hard to digest and ESRX has been a market laggard recently. The stock got dinged a few weeks ago when it missed earnings by a penny per share. The shares have rebounded lately, but it’s still a very solid buy.
Truthfully, I’ve wanted to add ESRX to the Buy List for many years, but I’ve always thought it was too expensive. The price action over the last two years tells me I was right. Now’s our chance. This is a strong company and it could be a breakout winner next year.