5-Star Stocks Poised to Pop: Yucheng Technologies

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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, Yucheng Technologies (Nasdaq: YTEC), which provides IT support to the Chinese banking industry, has earned a coveted five-star ranking.

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

Yucheng facts

Headquarters (founded)	Beijing, China (1999)
Market Cap	$146.6 million
Industry	IT Consulting and Other Services
Trailing-12-Month Revenue	$89.95 million
Management	CEO Weidong Hong (since November 2004) CFO Steve Dai (since June 2009)
PEG Ratio (five-year expected)	0.70
Competitors	Accenture (NYSE: ACN) IBM (NYSE: IBM) Longtop Financial Technologies
CAPS Members Bullish on YTEC Also Bullish on	Aluminum Corp of China (NYSE: ACH) Apple (Nasdaq: AAPL)
CAPS Members Bearish on YTEC Also Bearish on	Nam Tai Electronics (NYSE: NTE) Manitowoc (NYSE: MTW)

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS.

Over on CAPS, 345 of the 355 members who have rated Yucheng -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include geraldn100 and All-Star TSIF, who is ranked in the top 1% of our community.

Last year, geraldn100 brought Yucheng's cheap stock (which is even cheaper today) to our community's attention:

China's banking infrastructure is being built up from square one, and [Yucheng] is poised to capture the lucrative point of sale (POS) market, allowing Chinese customers to use credit or debit cards at stores. [Yucheng] is building a nice moat for itself and has very little debt and a P/E ratio that would be moderate for a middle-of-the-road American company, let alone a Chinese company with terrific growth prospects.

In a more recent pitch from last week, TSIF elaborates:

It's a small cap technology company, primarily servicing banks. Banks in China are on a growth spurt as the Chinese populace starts to receive reasonable wages for their hard work. The rising GDP is helping to form a middle class and the banks are seeing an increase in all phases of computer needs from software, networking, internet banking to database management. It has also been gaining ground at smaller rural banks. Founded in 1999, it services many of the state run banks that are adding branches at a rapid rate. Though small, with its 12% margins, P/B of 2, and positive cash flow, it stands to gain market share in a growing industry in China.

What do you think about Yucheng, 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.