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Why Ebix Is Poised to Bounce Back

By Brian D. Pacampara, CFA - Apr 3, 2013 at 1:30PM

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Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, insurance-industry software specialist Ebix (EBIX 4.77%) has earned a coveted five-star ranking.

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

Ebix facts

Headquarters (founded)

Atlanta (1976)

Market Cap

$606.1 million

Industry

Application software

Trailing-12-Month Revenue

$199.4 million

Management

Chairman/CEO Robert Raina

CFO Robert Kerris

Return on Equity (average, past 3 years)

25.4%

Cash/Debt

$37.4 million / $81.7 million

Dividend Yield

1.8%

Competitors

Applied Systems

Computer Sciences 

Vertafore

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

On CAPS, 97% of the 1,593 members who have rated Ebix believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, NoblyNaive, tapped the stock as a particularly attractive bargain opportunity:

Looks like a solid company in a good market, suffering from bad press. I like the fact that insiders have a large stake in the company. ... I have been watching EBIX float down for a while, waiting for bottom to form and an opportune time to get in. ... $16.19 looks like a good price to get in.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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Stocks Mentioned

Ebix, Inc. Stock Quote
Ebix, Inc.
EBIX
$28.97 (4.77%) $1.32
DXC Technology Stock Quote
DXC Technology
CSC

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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