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Featured Advisors
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Monday October 08, 2012
by Richard Moroney, editor Dow Theory Forecasts Pharmacy-benefits provider Express Scripts ( ESRX) is not your classic value stock. At 20 times trailing earnings, the shares trade at a 13% premium to the median health-care distributor and service stock in the S&P 1500 Index. But the company, which administers drug plans for employers and insurers, has superior growth potential.
Wall Street expects Express Scripts to earn $3.70 per share this year, up 25%. For 2013, the consensus projects 21% growth. Factoring in expected growth, Express Scripts looks more like a value play. Shares trade at 17 times estimated current-year earnings, versus 18 for its peers — a group that on average is expected to increase per-share profi ts 11% this year and 15% in 2013. Importantly, profit estimates for Express Scripts could prove too low. The April acquisition of Medco is expected to generate at least $1 billion in annual savings. In addition, the company is eschewing higher-cost retail pharmacies, which should trim expenses and boost profit margins. Express Scripts’ ability to keep drug costs low is winning new customers, and the company is positioned to leverage its estimated 30% market share in the fast-growing market for specialty pharmacy services. Aided by contributions from Medco, Express Scripts’ June-quarter earnings per share hit $0.88, up 24% and $0.06 above the consensus. That momentum should carry over to the September quarter, as estimates have risen in recent months. Express Scripts is a Focus List Buy and a Long-Term Buy. Learn more about this financial newsletter at Richard Moroney's Dow Theory Forecast.Related articles:
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News Flash
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Friday May 17, 2013
United Natural: A play on Whole Foods |
by Mark Skousen, editor Hedge Fund Trader Alert
We’ve recommended Whole Foods Market (WFM) from time to time, and the stock has moved up sharply in the past three years, but I’d like to suggest an alternative -- one of Whole Foods’ primary suppliers, United Natural Foods (UNFI).
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Thursday May 16, 2013
Timing expert eyes India |
by Sy Harding, editor Street Smart Report
The money flow and momentum reversals in India's Bombay Index have now been enough to trigger buy signals on intermediate-term indicators. With this new buy signal, we have added a position in the iShares India 50 ETF (INDY) to our portfolio.
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Wednesday May 15, 2013
Value investor goes with Guess |
by Charles Mizrahi, editor Hidden Values Alert
Guess?, Inc. (GES) is a holding in our special situation portfolio; its strong product quality has created brand name recognition and a loyal consumer following.
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Wednesday May 15, 2013
MGAM: Bingo, lotteries, casinos |
by Jim Oberweis, Jr., editor The Oberweis Report
Multimedia Games Holding Company (MGAM) makes innovative gaming systems for Native American and commercial casino operators in North America, lottery operators, and charity and commercial bingo operators.
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Tuesday May 14, 2013
Fidelity expert: Bowers' bond bets |
by Jack Bowers, editor Fidelity Monitor & Insight
If you’ve been worried that the bond market might take a big hit, you can relax. Indeed, while bond funds may lag stock funds over the next 5-10 years, they still have a decent shot at keeping up with inflation, and they remain an excellent way to cut risk in a blended portfolio.
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Tuesday May 14, 2013
Tesla: 'Out of the ball park' |
by Timothy Lutts. editor Cabot Stock of the Month
Tesla (TSLA), our previously featured Stock of the Month and our top stock pick for 2013, knocked the ball out of the park in its latest quarter. The company exceeded analysts' expectations on all counts: cars sold, revenues, earnings, gross margins and more.
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Monday May 13, 2013
5 ways to speculate on Cuba |
by Jim Powell, editor Global Changes & Opportunities Report
With the death of Hugo Chavez in March, and Venezuela’s economic decline, the heavily subsidized oil lifeline is likely to be cut or sharply reduced. I think the resulting energy squeeze will force Cuba to allow greater foreign trade and investment.
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Monday May 13, 2013
Big gains in nanotechnology? |
by Doug Fabian, editor Making Money Alert
The nanotechnology niche focuses on very small, even microscopic, technology. Nanotech has produced technological developments in medicine (lasers), electronics (ink jet systems) and biomaterials (chemical and bio-detectors).
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Friday May 10, 2013
Gold: Reasons for continued caution |
by Jim Stack, editor Investech Market Analyst
In October 2011, we questioned the run-up in gold prices to $1,895 an ounce and called prices “bubblish”. We were criticized for not understanding the new paradigm. Nonetheless, the price of gold has fallen significantly, and I feel more comfortable sharing my personal perspective of what lies ahead.
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Thursday May 09, 2013
Buffett's Berkshire is still a buy |
by Geoffrey Seiler, editor BullMarket.com
Recommended List selection Berkshire Hathaway (BRK.B) reported a 51% increase in net income for the first quarter, powered by profits from its extensive insurance businesses and strong results from the railroad unit.
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