This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TSC Ratings' Updates: Cerner

Note: Our quantitative model makes stock recommendations based on GAAP figures that may differ materially from data as reported by the companies themselves. As a result, rating changes are occasionally driven by so-called nonrecurring items. As always, we urge readers to use TSC Ratings' reports in conjunction with additional information to construct their opinions on the value that should be placed on any given stock.

The following ratings changes were generated on Tuesday, March 31.

We've upgraded Cerner (CERN - Get Report), which provides healthcare information technology solutions, health care devices and related services, from hold to buy. This rating is driven by the company's revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Revenue rose by 18.1% since the year-ago quarter. The company has a debt-to-equity ratio of 0.1, though it is still higher than the industry average. Its quick ratio is 2.3. EPS rose in the most recent quarter compared with the same quarter a year ago, and we anticipate the company's two-year trend of EPS growth to continue. Net income increased 73.1% compared with the year-ago quarter, from $41.3 million to $71.5 million.

Shares have risen over the past year, outperforming the S&P 500. Even the best stocks can fall in an overall down market, but in any other environment, this stock still has good upside potential.

We've downgraded Circor International (CIR - Get Report), which designs, manufactures, and distributes valves and related fluid-control products, from hold to sell. This rating is driven by the company's deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Net income fell to -$110.1 million from $10.1 million in the same quarter last year. Return on equity also decreased. Circor's gross profit margin is 32.9%, though it has increased from the year-ago quarter. Its net profit margin of -54.5% is below the industry average. Net operating cash flow fell 21.9% to $28.7 million compared with the year-ago quarter.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CERN $56.85 -0.19%
CIR $57.06 -7.00%
ONB $12.68 -1.90%
UGP $20.10 -1.60%
UVE $17.35 -1.40%


Chart of I:DJI
DOW 17,769.77 -121.39 -0.68%
S&P 500 2,066.57 -14.86 -0.71%
NASDAQ 4,784.8210 -32.7730 -0.68%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs