5-Star Stocks Poised to Pop: Quality Systems

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, medical records software maker Quality Systems (NAS: QSII) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Quality Systems' business and see what CAPS investors are saying about the stock right now.

Quality Systems facts

Headquarters (founded)

Irvine, Calif. (1974)

Market Cap

$950.7 million

Industry

Health care technology

Trailing-12-Month Revenue

$447.7 million

Management

CEO Steven Plochocki (since 2008)
CFO Paul Holt (since 2000)

Return on Equity (average, past 3 years)

28.3%

Cash/Debt

$134.9 million / $0

Dividend Yield

4.3%

Competitors

Allscripts Healthcare Solutions
GE Healthcare
McKesson


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 2,206 members who have rated Quality Systems believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star BuffettJunior1, succinctly summed up the bull case for our community:

This is an outstanding business trading at an extremely low valuation. The company operates in an industry that will continue to grow at a rapid rate over the next couple of decades. While I may not know what will happen over the next few quarters, over the long run well positioned companies in this industry (such as QSII) will almost certainly do very well. This is one of the rare stocks that I would give an A rating to.

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Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 5-Star Stocks Poised to Pop: Quality Systems originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Quality Systems and McKesson. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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