5-Star Stocks Poised to Pop: Jack Henry

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Jack Henry & Associates (Nasdaq: JKHY), which makes computer systems for financial institutions, has earned a coveted five-star ranking.

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

Jack Henry facts

Headquarters (founded)	Monett, Miss. (1969)
Market Cap	$1.75 billion
Industry	Application Software
TTM Revenue	$742.4 million
Management	CEO John Prim (since 2004) CFO Kevin Williams (since 2001)
Return on Equity (average, last three years)	17.4%
Dividend Yield	1.6%
Competitors	Fiserv (Nasdaq: FISV) IBM (NYSE: IBM)
CAPS Members Bullish on JKHY Also Bullish on:	Procter & Gamble (NYSE: PG) General Electric (NYSE: GE)
CAPS Members Bearish on JKHY Also Bearish on:	Timberland (NYSE: TBL) Alon USA Energy (NYSE: ALJ)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 182 of the 188 members who have rated Jack Henry -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include Toots99 and my fellow Fool Todd Wenning (TMFPhila), who is ranked in the top 20% of our community.

Last year, Toots99 tapped the stock as a rare bankable opportunity: "Awesome computer system set up for banks. Gaining market share with the small community bank set and looking to expand to larger banks with branches in excess of 30+. Robust business with great potential."

In a more recent pitch, Todd also urged Fools to get jacked up about Jack Henry:

This is a neat little company -- a bank/financial computer solutions company with increasing recurring revenues, a consistent history of FCF generation, no long-term debt, solid insider ownership, tenured leadership … The risk here, obviously, is if small- and mid-size banks are the next to fall or consolidate. However, I think with the big banks busy gobbling each other up and picking through the dumpster full of fallen foes, the smaller banks should fly under the radar while this credit mess works itself out. Plus, smaller banks could see more customers after watching the big boys fall.

What do you think about Jack Henry, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.