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4-Star Stocks Poised to Pop: Quality Systems

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' business and see what CAPS investors are saying about the stock right now.

Quality Systems facts

Headquarters (Founded) Irvine, Calif. (1974)
Market Cap $2.24 billion
Industry Systems software
Trailing-12-Month Revenue $397.1 million
Management

Founder/Chairman Sheldon Razin

President/CEO Steven Plochocki

Return on Equity (Average, Past 3 Years) 30.1%
Cash/Debt $126.9 million / $0
Dividend Yield 1.8%
Competitors

Computer Programs & Systems (Nasdaq: CPSI  )

General Electric (NYSE: GE  )

McKesson (NYSE: MCK  )

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

On CAPS, 97% of the 2,183 members who have rated Quality Systems believe the stock will outperform the S&P 500 going forward. These bulls include Danyboy7 and All-Star huddaman, who is ranked in the top 10% of our community.

Earlier this year, Danyboy7 listed several of Quality Systems' positives:

Good growth!
Nice ownership!
Low to little debt!
Good little dividend!
What more could a small investor looking to make it big time ask for?

Over the next five years, in fact, Quality Systems is expected to grow its bottom line at a brisk rate of 22.2% annually. That's faster than listed competitors like Computer Programs (18%), General Electric (14.7%), and McKesson (14%).

CAPS All-Star huddaman elaborates on the Quality Systems bull case:

In spite of the high P/E ... its a strong buy. There appears to be a lot of happy times (party) for this business ahead. The higher P/E can be thought of as the cover charge. The risk is that the simply growth won't materialize, P/E will shrink and you will lose the cover charge. But the upshot is, the high growth will make you lot of mad money.

What do you think about Quality Systems, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Quality Systems? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Quality Systems and McKesson. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:00 PM
QSII $29.25 Up +0.08 +0.27%
Quality Systems CAPS Rating: ****
MCK $87.69 Up +0.70 +0.80%
McKesson CAPS Rating: ****
GE $19.20 Down -0.05 -0.26%
General Electric C… CAPS Rating: ****
CPSI $56.63 Up +1.00 +1.80%
Computer Programs… CAPS Rating: *****

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