Why Quality Systems Will Rebound in 2013

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 Systemshas earned a respected four-star ranking.

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

Quality Systems facts

Headquarters (founded)

Irvine, Calif. (1974)

Market Cap

$1 billion

Industry

Health care technology

Trailing-12-Month Revenue

$456.2 million

Management

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

Return on Equity (average, past 3 years)

27.8%

Cash/Debt

$122.0 million / $0

Dividend Yield

4.1%

Competitors

Allscripts Healthcare Solutions
GE Healthcare

McKesson


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

On CAPS, 97% of the 2,224 members who have rated Quality Systems believe the stock will outperform the S&P 500 going forward.

A couple of weeks ago, one of those Fools, All-Star BlacknGold, succinctly summed up the bull case of our community:

Quality Systems has a few things going for it. It has a solid dividend, growing revenue and net income, no debt, growing assets, and growing shareholders' equity. I played this one after Mr. Market squeezed out a lot of funny money from the market cap a few months back. While investors are still paying a premium for growth (only $300 million in shareholders' equity with a $1+ billion market cap) it is certainly much less expensive than before. Of course, there is no reason to think it can't be punished further.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Quality Systems may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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The article Why Quality Systems Will Rebound in 2013 originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend McKesson and Quality Systems. 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 Motley Fool has a disclosure policy.

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