Why Quality Systems Will Rebound in 2013

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 (NASDAQ: QSII  ) has 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 (NASDAQ: MDRX  )
GE Healthcare

McKesson
(NYSE: MCK  )

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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