Quality Systems (QSII) provides health care information systems used in automating medical and dental records. Having been around since 1974, the company is one of the more experienced providers in the sector.
Questions about revenue timing, competitive threats and the loss of an important contract caused the stock to swoon in July, but it has since stabilized.
Increasing federal and state regulation of medical records, as well as the ongoing push for efficiencies in healthcare, create good long-term prospects for this business. No debt, ample cash, free cash flow, and an attractive dividend make Quality Systems particularly interesting.