Companies are always looking for an edge and they can usually find one by comparing the success rates of their various endeavors. Today's featured firm is an established provider of the business intelligence programs and development tools firms use to refine their focus.

Hyperion Solutions Corporation (NASDAQ:HYSL) provides business performance management software. Its program systems enable customers to collect, organize and analyze enterprise data in search of such useful indicators as sales trends, buying habits and budget swings. The results are used to understand customer relationships, create statutory reports, develop strategic plans and monitor performance against goals.

The firm pleased investors last week, when it reported fiscal Q2 EPS of 50 cents and revenues of $222.9 million. Analysts had been looking for 43 cents and $212 million. Management also guided Q3 EPS to 40-45 cents (42 cent consensus), Q3 revenues to $215-$220 million ($208.83M consensus), FY07 EPS to $1.80-$1.85 ($1.72 consensus) and FY07 revenues to $885-$895 million ($856.45M consensus). Shares popped through 30-day, 50-day and 90-day moving average resistance on the news and are now consolidating the gain in a bullish "flag" pattern. Equities frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with four "strong buys," six "buys," fourteen "holds" and three "sells." The HYSL Price to Sales ratio (2.88), Price to Book ratio (3.75), Price to Free Cash Flow ratio (15.05), Sales Growth rate (20.16%) and EPS Growth rate (35.14%) compare favorably with industry, sector and S&P 500 averages.

The stock is one of those used to calculate the S&P 600 SmallCap Index. Institutional investors hold about 95% of the outstanding shares. Over the past fifty-two weeks, HYSL has traded between $26.65 and $41.95. A stop-loss of $35.80 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.