Express Scripts: From Overpriced to Reasonably Priced in 5 Days

Just a few days ago, Express Scripts (ESRX) was one of the few market standouts able to stave off the clutches of a bear market, trading just points away from a new 52-week high. But since touching an intra-day high of $76 last Thursday, the stock has fell to $58.82 yesterday with another 5% broad market selloff, which puts Express Scripts just points away from a new 52-week low. The decline means that the shares trade at just 18 times earnings from a mid-20 PE last week with earnings expected to grow by 18.5% over the next year, much more reasonably priced when you consider that the pharmacy benefits manager had gotten ahead of its sector peers like Medco Health in terms of valuation. If there is anything good about a bear market, it’s that fundamentally strong companies with fine earnings prospects go on sale and companies like Express Scripts are allowed to be picked up at a discount