Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmacy benefits manager (PBM) Catalyst Health Solutions (Nasdaq: CHSI) has earned a coveted five-star ranking.

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

Catalyst facts

Headquarters (Founded)

Rockville, Md. (1994)

Market Cap

$1.77 billion


Health-care services

Trailing-12-Month Revenue

$3.2 billion


CEO David Blair (since 1999)
CFO Hai Tran (since 2008)

Return on Equity (Average, Past 3 Years)



$207.56 million / $0


CVS Caremark (NYSE: CVS)
Express Scripts (Nasdaq: ESRX)
MedcoHealth Solutions (NYSE: MHS)
Healthways (Nasdaq: HWAY)

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

On CAPS, 97% of the 310 members who have rated Catalyst believe the stock will outperform the S&P 500 going forward. These bulls include All-Star jamespeer, who is ranked in the top 1% of our community, and robertshrestha.

Late last month, jamespeer touched on the looming event that seems to have weighed on Catalyst: "They are about to lose a fairly large contract at year end but a financially solid and well managed company I believe stock is oversold at current levels and in line for a strong bounce."

In fact, Catalyst found its shares in freefall last month on worries that it was about to lose several of its key accounts -- Wellmark, the state of Maryland, and MCS Advantage. While the stock has bounced back in a big way of late, our community believes there's still plenty of room for Catalyst to run. With Catalyst, along with fellow PBMs like CVS, Express Scripts, Medco, and Healthways, positioned perfectly to gain from the trend toward low-cost generics and mail order, CAPS member robertshrestha thinks the stock is certainly worth checking out:

Overreaction due to client losses serves as a classic buying opportunity. Has rallied recently, but there's still tons of value left. Loss of MCS still isn't a done deal, leaving room for an upside surprise. Also, growth of PBM sector as a whole is well worth buying into. Easy outperform call for long-term investors. Don't miss out.

What do you think about Catalyst, 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!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Healthways is a Motley Fool Stock Advisor pick. Try any of our Foolish newsletter services free for 30 days.

True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool's disclosure policy always gets a perfect score.