Express Scripts Holding Company (ESRX): An Interesting Play on Health Care

CVS Caremark Corporation (NYSE:CVS) is the largest pharmacy health care provider in the U.S., with over 7,500 stores that filled a total of over 650 million prescriptions last year. In addition to pharmacy benefit management services (which accounts for half of the company’s sales), CVS is the largest operator of retail health care clinics in the country with almost 700, and 100 new clinics planned annually over the next five years. Investors also get nice retail exposure, as CVS Caremark Corporation (NYSE:CVS) sells over-the-counter drugs, beauty products, photo services, and much more. CVS trades at a seemingly more expensive valuation of 14.5 forward earnings, but considering its expected 13% forward earnings growth rate, that doesn’t seem bad at all.

Time to Buy?

Express Scripts Holding Company (NASDAQ:ESRX) is valued right, and is projected to grow rapidly in the years ahead. Once the company completely integrates Medco’s operations and reaps the cost savings that come with the increased efficiency, higher profits should follow. With shares still trading more than 15% below their 52-week high, this could be a great time to get in to a company with amazing potential, especially with rising health care expenses and more people having coverage.

The article An Interesting Play on Health Care originally appeared on Fool.com and is written by Matthew Frankel.

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