Pharmacy benefits manager Express Scripts (ESRX), which I first wrote about on June 9, 2009, at a 2-for-1 split-adjusted price of $31.82, zipped through major, psychological resistance at $50 this winter. It pushed $59, before pulling back slightly, but I obviously still like the business model at this juncture.

Look for the company's 2011 revenue to rise 3% to 5% on new accounts and the NextRx PBM purchase, after a nearly doubling of revenue in 2010.

Analyst upgrades:

• Netflix (NFLX) upgraded to Buy from Underperform at BofA/Merrill.
• Rockwell (ROK) upgraded to Outperform from Market Perform at Wells Fargo.
• Chico's (CHS) upgraded to Outperform from Market Perform at FBR Capital.
• Ann Taylor (ANN) upgraded to Buy from Hold at Citigroup.
• Meredith (MDP) upgraded to Buy from Hold at Citigroup.
• CarMax (KMX) upgraded to Outperform from Sector Perform at RBC Capital.
• Family Dollar (FDO) upgraded to Outperform from Sector Perform at RBC Capital.
• Siliconware Precision (SPIL) upgraded to Outperform from Neutral at Macquarie.
• Amedisys (AMED) upgraded to Buy from Hold at Jefferies.
• TRW Automotive(TRW) upgraded to Buy from Neutral at Goldman.
• Magna (MGA) upgraded to Neutral from Sell at Goldman.

Analyst upgrades:

• Verizon (VZ) to conviction buy from buy at Goldman.
• CSX (CSX) to outperform from market perform at Wells Fargo.
• AK Steel (AKS) to overweight from neutral, as well as Lorillard (LO) and Fifth Third Bancorp (FITB) to neutral from underweight, at JPMorgan.
• Marathon Oil (MRO) to overweight from equal weight at Morgan Stanley.
• Corning (GLW) to buy from outperform at CLSA.
• Quest Diagnostics (DGX) to buy from hold at Jefferies and to outperform from sector perform at RBC Capital.
• Salesforce.com (CRM) to buy from neutral at Roth Capital.
• Baker Hughes (BHI) to buy from hold at Weeden and to outperform from neutral at Macquarie.
• Western Digital (WDC) and Seagate (STX) to buy from underperform at BofA/Merrill.

The positive story continues with pharmacy benefits manager Express Scripts Inc. (ESRX), which I first wrote about on June 9, 2009, at a 2-for-1, split-adjusted price of $31.82.

In fact, the uptrend has been so impressive, Express traded near $56 on Friday, those in since June 2009 may wish to consider taking some profits off the table, to say the least. It never hurts a portfolio to take a portion of a roughly 80% gain.

"One thing that will continue to play out -- regardless of the direction of health care policy and law -- consumers and spenders of health care dollars need to spend less," notes Neil George.

The editor of The Pay Me Strategy explains, "One solution for more efficient spending comes from Express Scripts (ESRX), which is right in the thick of the issue of prescription drugs and drug costs. The Saint Louis-based company is one of the leaders in pharmaceutical benefit management.

"To get lower drug prices -- you need to not only advance the efficiency of drug processing and distribution -- but also the advancement of cheaper generic drugs.

Analyst Upgrades

• Verisk (VRSK) was upgraded to outperform from market perform at Wells Fargo.
• Marriott (MAR) was upgraded to outperform from market perform at Bernstein.
• Jefferies upgraded Teekay (TK) and Tsakos Energy (TNP) to Buy from Hold.
• Cadence Design (CDNS) was upgraded to sector perform from underperform at RBC Capital.
• BofA/Merrill upgraded NV Energy (NVE) to buy from underperform and Education Realty Trust (EDR) to neutral from underperform.
• Men's Wearhouse (MW) was upgraded to buy from hold at Stifel.
• William Blair upgraded Atheros (ATHR) to outperform from market perform.
• Freeport McMoran (FCX) was upgraded to buy from hold at Argus.

The shares of pharmacy benefits manager Express Scripts (ESRX), which I first wrote about on June 9, 2009, at a 2-for-1 split-adjusted price of $31.82, remains a play with promise.

Express's 2010 revenue will likely vault more than 80% on new accounts and the NextRx PBM purchase. Express is in a "prescription sweetspot" of sorts: an aging populace, plus a likely renewed emphasis on health and wellness in the United States, and the possibility of federal, health care reform legislation, bodes well for many health care players, and pharmacy benefits managers.

"Pharmacy benefits managers (PBMs) are the main distributors of drugs to retail pharmacies and directly to consumers; in our view, the PBM sector is a must-have health care area for investors," says Stephen Leeb.

The editor of The Complete Investor explains, "Express Scripts (ESRX) is a leading and fast-growing pure-play PBM that has been generating impressive results and is undervalued relative to the industry.

"One striking health care trend in recent years has been a dramatic rise in prescriptions. For the 10 years ended in 2009, according to a government study, the number of prescription drugs dispensed in the U.S. rose 39 percent, while U.S. population growth was just 9 percent.

Express Scripts (ESRX - option chain) shares are rising today just ahead of the completion of the company's scheduled 2:1 stock split. Tomorrow morning, investors will find twice as much ESRX stock in their accounts and the price should be about halved. A split is often viewed as a bullish indicator, since the stock seems cheaper after the split, even though all things are essentially equal. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ESRX.

ESRX opened this morning at $100.02. So far today the stock has hit a low of $99.96 and a high of $104.16. As of 12:20, ESRX is trading at $103.90 up $4.74 (4.8%). The chart for ESRX looks bullish and S&P gives ESRX a positive 5 STARS (out of 5) strong buy ranking.

As forecast in March, pharmacy benefits manager Express Scripts Inc. (ESRX), first discussed on June 9, 2009 at a price of $63.64, has zoomed to $100, and it may be at $110 before long. I obviously still like the shares.

How much upside remains? Considerable. Look for Express' 2010 revenue to zoom more than 70% on new accounts and the NextRx PBM purchase. An aging populace, plus a likely renewed emphasis on health and wellness in the United States, and recent federal health care reform legislation bodes well for many health care players and pharmacy benefits managers.

Pharmacy benefits manager Express Scripts (ESRX), which I first wrote about on June 9, 2009 at a price of $63.64, remains a company and stock with promise. Here's why:

An aging populace, plus a likely renewed emphasis on health and wellness in the United States, and the possibility of federal health care reform legislation bodes well for many health care players, including pharmacy benefits managers like ESRX.

U.S. stock futures fell Thursday morning as investors digested news of a possible downgrade of Greece's sovereign debt and prepared for the second day of testimony from Federal Reserve Chairman Ben Bernanke, as well as the release of several key economic indicators.

Both Moody's and Standar & Poor's said a donwngrade of Greece's sovereign debt is still possible, depending on how it enacts its fiscal reform plans. Of course, a downgrade would increase the country's borrowing costs and exacerbate its problems. This also caused fears of other possible defaults among other eurozone countries. Wold markets retreated in response.

Analyst Upgrades

• Deutsche Bank upgraded Wells Fargo (WFC) to buy from hold as it believes the TARP repayment should remove uncertainty and that the company will report strong Q4 results. The firm raised its target price on shares to $36 from $29. Keefe Bruyette upgraded Wells Fargo to market perform from outperform following the TARP repayment and raised its target on shares to $28 from $24.
• Wells Fargo believes News Corp's (NWS) newspaper and TV station segments are finally outperforming budget, while cable nets continue to perform well. The firm upgraded shares to outperform from market perform and has a $16 to $17 Valuation range.
• BofA/Merrill upgraded Starwood Hotels (HOT) to buy from underperform as they expect "strong cyclical recovery in lodging earnings" in late 2010. The firm raised its target to $40 from $25.
• ArcelorMittal (MT) was upgraded to buy from neutral at UBS.
• JA Solar (JASO) was upgraded to hold from sell at ThinkEquity.
• Acxiom (ACXM) was upgraded to overweight from equal weight at Stephens.

The Express Scripts Inc. (ESRX) train is leaving the station: hence, I'm reiterating my buy rating for the company's shares, first recommended on June 9, 2009 at a price of $63.64.

If you bought ESRX in June, you're up about 35%.

Simply, an aging populace, plus a likely renewed emphasis on health and wellness in the United States, and the probability of federal, health care reform legislation, bodes well for many health care players, and pharmacy benefits managers like ESRX.

Analyst Upgrades

• Janney Montgomery upgraded Dreamworks (DWA) to buy from neutral on valuation and believes Dragon will be a major hit. The firm has a $45 target on the stock.
• Thomas Weisel upgraded Gildan Activewear (GIL) to market weight from underweight, citing expectations for increased market shares in the U.S. screen print channel. The firm raised its target to $17 from $12.
• P.F. Chang's (PFCB) was upgraded to overweight from equal weight at Morgan Stanley.
• PEPCO Holdings (POM) was upgraded to outperform from neutral at Credit Suisse.
• Arris (ARRS) was upgraded to buy from neutral at UBS.