Sohu.com Inc (SOHU), BMC Software, Inc. (BMC): Three Computer Services Firms that Stand Out

athenahealth, Inc (NASDAQ:ATHN) is an internet-based health practice management application. The service is provided through athenaNet and facilitates billing, clinical services and other similar services. The services are very rare, and that contributes to the firm’s 97% retention rate, and the vast majority of customers report a positive experience with the company. That client retention will help the firm keep its competitive position in this sub-sector.

This company’s health will last for at least several years, as its services are needed in a climate that is full of health-care reforms, aging software and complex insurance processing requirements. Furthermore, health care IT integration is becoming a common practice. Despite a disappointing second quarter, I am a long-term bull on this company.

Keeping an eye on progress

I usually check the health of my stocks every day, and read nearly all news reports about each. That becomes particularly important in the computer services industry, as there is a slew of mergers and acquisitions to look out for. While it is difficult to know the precise effect one of these deals could have on a company, you want to purchase a stock that is at least actively pursuing growth. All three of these firms meet that bill, but you also need to keep a close eye on how well they are integrating.

The article 3 Computer Services Firms that Stand Out originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip Woolgar has no position in any stocks mentioned. The Motley Fool recommends Athenahealth and Sohu.com. The Motley Fool owns shares of BMC Software. Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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