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What: Shares of Computer Programs & Systems
So what: Driven by a strong surge in sales, CPSI managed to grow its fourth-quarter earnings a whopping 85% to $0.61 per share, compared to $0.33 per share in the year-ago period. At the time of publication, more than 250,000 of CPSI shares had already changed hands, versus the three-month average volume of just 61,000.
Now what: I'd be cautious about jumping into CPSI at this point. The shares are hitting 52-week and all-time highs with today's double-digit pop, and they currently trade around a forward P/E of 25. CPSI is certainly benefiting from the growing adoption of health-care IT systems, but going forward, the likes of McKesson and Quality Systems seem like more solid bets on that trend.
Interested in more info on CPSI? Add it to your watchlist.
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. McKesson and Quality Systems are Motley Fool Stock Advisor picks. McKesson is also a choice of Motley Fool Inside Value. Try any of our Foolish newsletter services free for 30 days.
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