There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

January 6, 2010 - Medco Health Solutions (MHS-NYSE) is a health care company that provides clinically driven pharmacy services for approximately 60 million Americans. The company focuses on various segments of the healthcare industry.

Through its subsidiary, Liberty Medical, the company provides diabetes testing supplies and related products. Medco Health Solutions, Inc. also offers services, including plan design, clinical management, utilization management, clinical services, pharmacy management, mail-order services, physician services, and Web-based services to private and public employers, health plans, labor unions, and government agencies.

The company's clients primarily include Fortune 500 companies. It has a joint venture agreement with United Drug plc to provide home-based pharmacy care services in the United Kingdom for patients covered by the National Health Service.

The company was founded in 1983 and is based in Franklin Lakes, New Jersey.

Here's the scoop: earnings increased every year since 2000, as far back as the data goes. The company was originally a wholly owned subsidiary of Merck & Co. On August 20, 2003, it incorporated as an independent entity and spun off from Merck. Earnings started in 2000 at 40 cents a share. Last year, they were $2.33. This year, 26 analysts have a consensus estimate of $2.82. Next year, they see $3.35. For the fourth quarter, look for 75 cents a share, up from 59 cents in last year's fourth. In the first quarter of this year, expect 77 cents a share, well above the 63 cents in 2009's first period.

Revenues followed the same upward path. In 2006, they were $35.150 billion. In 2008, they hit $51.26 billion. For 2009, analysts see $59.64 billion, then $64.10 billion in 2010. Revenues in the third quarter of 2009 were up 17.8% thanks to new clients and higher prices for some brand name drugs. Clearly, the economy has not affected MHS as it has so many other companies.

And the stock reflects that. It's gone almost straight up since its public offering in 2003. Starting at $10.10 a share (split adjusted for a 2 for 1 split in early 2008), the stock is currently near its all time high of $66, reached on December 14, 2009. Back in March of 2009, it reached a 52-week low of $36.46.

Medco continues to add to its client base, both in the U.S. and abroad with new contracts and acquisitions. In Germany, MHS bought one of the country's leading online over-the-counter and healthcare product companies. With MHS's expertise, the new unit will provide more choices and convenience for German consumers. It also helps MHS's global market reach.

The company is in great financial shape with over $2 billion in cash. It recenly paid off $400 million in short term debt. That should save $3 million a year in interest payments. There's also a $1.8 billion authorization from the board to buy back stock. Since the board originally approved the repurchase plan, the company bought almost 24 million shares. There are 476.764 million outstanding. Look for more stock purchases or acquisitions as the company uses all that cash.

More numbers: Forward P/E is 19.34. Price to sales is .53. Price to book is 4.94. Book value is $12.94 per share. Operating margin for the last 12 months was 3.86% while Profit margin was 2.11%. Return on equity was an admirable 20.11%. Total cash per share is $4.34. Total debt is $4.21 billion. Current ratio is 1.28. Institutions own 80.5% of the stock. There is no dividend. Earnings are forecast to grow annually by 17% over the next 5 years.

Conservative investors should like everything about this stock except the price. Trading within 10% of its all-time high, this stock is loved by almost every kind of investor. While earnings will grow better than average, that seems to already be in the stock's price. Convinced investors may want to wait for a better entry level to buy the stock. And that opportunity may come. Remember, only 10 months ago the stock traded below $40 a share.

- Company Web site: www.medco.com

- Ted Allrich