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Express Scripts: An Undervalued, Dominant Healthcare Player

The focus on short-term noise surrounding drug pricing in the U.S. has created an opportunity in this wide-moat name for long-term investors.

Mentioned:

Vishnu Lekraj: With the recent noise in the system in terms of drug pricing within the United States, there have been a number of companies that have been hurt from a stock perspective over the past several months.

One of these stocks is Express Scripts. However, we believe this stock is still a wide-moat company that commands a significant portion of the pharmaceutical supply chain and is able to deliver significant returns on capital to their investors. We believe this has not changed. Our thesis for the company is still intact, and we believe it will be a dominant player in the healthcare market moving forward.

Vishnu Lekraj does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.