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What Is Express Scripts Holding Company’s (NASDAQ:ESRX) Share Price Doing?

Let’s talk about the popular Express Scripts Holding Company (NASDAQ:ESRX). The company’s shares saw a decent share price growth in the teens level on the NasdaqGS over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Express Scripts Holding’s outlook and value based on the most recent financial data to see if the opportunity still exists. See our latest analysis for Express Scripts Holding

What is Express Scripts Holding worth?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 4.31% below my intrinsic value, which means if you buy Express Scripts Holding today, you’d be paying a fair price for it. And if you believe the company’s true value is $78.94, then there isn’t much room for the share price grow beyond what it’s currently trading. Furthermore, Express Scripts Holding’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. This may mean it is less likely for the stock to fall lower from natural market volatility, which suggests less opportunities to buy moving forward.

What kind of growth will Express Scripts Holding generate?

NasdaqGS:ESRX Future Profit Jun 5th 18
NasdaqGS:ESRX Future Profit Jun 5th 18

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Though in the case of Express Scripts Holding, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What this means for you:

Are you a shareholder? Currently, ESRX appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

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Are you a potential investor? If you’ve been keeping an eye on ESRX for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on ESRX should the price fluctuate below its true value.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Express Scripts Holding. You can find everything you need to know about Express Scripts Holding in the latest infographic research report. If you are no longer interested in Express Scripts Holding, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.