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Why Computer Programs & Systems Is Ready to Rebound

Monday - 4/8/2013, 12:37pm  ET

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, health care IT solutions specialist Computer Programs & Systems has earned a coveted five-star ranking.

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

Computer Programs facts

Headquarters (founded)

Mobile, Ala. (1979)

Market Cap

$586.0 million

Industry

Health care technology

Trailing-12-Month Revenue

$183.3 million

Management

Chairman/CFO David Dye

CEO J. Boyd Douglas

Return on Equity (average, past 3 years)

48%

Cash/Debt

$19.6 million / $0

Dividend Yield

3.8%

Competitors

Healthcare Management Systems

Healthland

Medical Information Technology

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

On CAPS, 93% of the 137 members who have rated Computer Programs believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, Motley Fool Co-Founder David Gardner (TMFSpiffyPop), succinctly summed up the outperform case for our community:

Niche player serving rural hospitals and hard to compete with on that terrain. Decent dividend. Long operating history. Electronic health records are a good space. That said, as the company further grows into its niche, it's not clear to me a couple years out that there is meaningful growth past that. Could be a buyout candidate at some point. Anyway, for the next couple of years: Outperform.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Computer Programs may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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

This article was originally published as Why Computer Programs & Systems Is Ready to Reboundon Fool.com

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