Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Higher One Holdings (NYSE: ONE), which provides payment software and services to colleges and students, has earned a respected four-star ranking.

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

Higher One facts

Headquarters (founded) New Haven, Conn. (2000)
Market Cap $704.5 million
Industry Data processing and outsourced services
Trailing-12-Month Revenue $186.6 million
Management Co-Founder/Chairman/COO Miles Lasater
Co-Founder/CEO Mark Volchek
Trailing-12-Month Return on Equity 28.6%
Cash / Debt $36.6 million / $9.7 million
Competitors Core3
Nelnet
SLM

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

On CAPS, 95% of the 40 members who have rated Higher One believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, All-Star BuffettJunior1, succinctly summed up the Higher One bull case for our community: "This company is number ONE in its industry! Fundamentals are outstanding and the valuation is reasonable. This stock should significantly outperform the market over the long run."

Of course, despite its four-star rating, Higher One may not be your top choice. If that's the case, we've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." 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.

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