What to Learn From Columbus Circle Investors’ Big Buys? Express Scripts Holding Company (ESRX), Whirlpool Corporation (WHR)

Express Scripts Holding Company (NASDAQ:ESRX)

CCI has purchased an additional 88 percent of shares in Express Scripts. The provider of healthcare management services is in for robust growth in the coming years, with an EPS growth estimate placed at 17.67% in the next 5 years. In fact, the company has surpassed consensus EPS estimates in the previous couple of quarters. It also has a healthy valuation at a forward P/E of 13.05 and 12-month forward PEG ratio of 0.94. It has been freshly reiterated a “buy” with a score of B by TheStreet Ratings for its net income increase and robust revenue growth, which is shown in the chart below. Express Scripts, which now has 100 million members, is well-situated in the pharmacy benefit management business after it acquired Medco Health Solutions last year.

Whirlpool Corporation (NYSE:WHR)

CCI increased its holding in Whirlpool 8-folds by buying an additional 880,258 shares in the fourth quarter. As in the other big buys of the fund manager, Whirlpool’s EPS is estimated to grow robustly, by 31.01%, next year. The company went beyond EPS consensus in the previous couple of quarters. Although it had missed revenue expectations recently, its strong earnings were attributed to an improved operating margin due to the success of cost-cutting strategies. Gross profit margin went up to 16.95% in the fourth quarter of 2012 from 14.50% in the same quarter of 2011. I believe Whirlpool is a strong company that has the capability to withstand a great deal of challenges. I say its huge exposure to emerging economies and its commitment for better performance in terms of energy efficiency and design will help it gain momentum.

Columbus Circle Investors had picked an excellent mix of big buys that provide good prospects for growth. I suggest investors to take a look and consider these companies for their own portfolios.

The article What to Learn From Columbus Circle Investors’ Big Buys? originally appeared on Fool.com and is written by Aubrey Tabuga.

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