69 hedge funds and other notable investors in our database of 13F filings owned shares of Express Scripts Holding Company (NASDAQ:ESRX), making it the most popular healthcare stock among hedge funds (find more healthcare stocks hedge funds love); Lone Pine had a significant position there. Express Scripts is now back in business as a prescription management partner with Walgreen Company (NYSE:WAG), which seems to already be having a positive impact on its financials. At 13 times consensus earnings for 2013, we would call Express Scripts another candidate for value status.
The fund owned about 860,000 shares of AutoZone, Inc. (NYSE:AZO), which carries trailing and forward P/Es of 15 and 11 as well as a PEG ratio of 0.9. The replacement auto parts store is being valued higher than many other auto related companies which are more exposed to demand, but the pricing might still be considered low particularly as the most recent quarterly report showed growth on both top and bottom lines. Bain Capital’s Brookside Capital initiated a position in the stock during the third quarter (check out more of Brookside’s stock picks).
Mandel and his team more than doubled the size of their position in Dollar General Corp. (NYSE:DG) to a total of 8.3 million shares. Even though the dollar store has been growing rapidly and has little exposure to the broader economy (the beta is only 0.1), its earnings multiples are in the teens. We’d consider it another prospect for future research. Lee Ainslie’s Maverick Capital was also buying the stock (research more stocks Ainslie likes).