Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks -- and the track records of the companies behind them -- so individuals can make better investing decisions.
In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of the 140,000 members, many of whom demonstrate better investing insight than published analysts do.
After a long spell at no better than a four-star rank in CAPS, enough top-performing members have recently turned to the bullish side of Zix (Nasdaq: ZIXI ) to upgrade it to a tip top five-stars. A total of 498 members have given their opinion on Zix, with many of them offering analysis and commentary explaining the recent optimism.
Although the company is tiny by comparison to its competitors, many CAPS members see a bright future for Zix's email encryption technology and believe that health care changes in the U.S. will drive demand for the company's e-prescription business. The company's PocketScript application allows physicians to order prescriptions electronically from pharmacies such as Walgreens (NYSE: WAG ) , CVS (NYSE: CVS ) , Rite Aid (NYSE: RAD ) , and Wal-Mart Stores (NYSE: WMT ) , with the help of its partner Surescripts, the nation's largest e-prescription network. Surescripts forecasts big growth in e-prescriptions and Zix itself saw a 19% year-over-year transactional increase in the second quarter. The company also recently said it's looking at strategic alternatives for this business, and some CAPS members believe a deal may be on the horizon, which could unlock some shareholder value.
The company plans to focus on its email encryption business, where it's strengthening relationships with existing partners like Google (Nasdaq: GOOG ) and Symantec. It also created a new partnership with Webroot, all of which should help Zix expand its customer base internationally and help fend off competition from behemoths like Cisco (Nasdaq: CSCO ) . The email encryption business pulled in record-high total revenue and total orders in the second quarter in the middle of a tough economy, and it anticipates further growth in the email encryption market in upcoming quarters as demand for online security grows.
Do you think Zix deserves its five-star status? Add your thoughts in the comments box below, or head over to CAPS to rate it yourself. While you're at it, see what the very best CAPS analysts are saying now about the company.
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