Cerner (CERN) Reaches New Lifetime High Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cerner as such a stock due to the following factors:
- CERN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $113.0 million.
- CERN has traded 450,888 shares today.
- CERN is trading at a new lifetime high.
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More details on CERN:
Cerner Corporation designs, develops, markets, installs, hosts, and supports healthcare information technology, healthcare devices, hardware, and content solutions for healthcare organizations and consumers in the United States and internationally. CERN has a PE ratio of 47.6. Currently there are 18 analysts that rate Cerner a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Cerner has been 1.4 million shares per day over the past 30 days. Cerner has a market cap of $24.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.85 and a short float of 4.8% with 9.57 days to cover. Shares are up 10.8% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Cerner as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- CERNER CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CERNER CORP increased its bottom line by earning $1.50 versus $1.13 in the prior year. This year, the market expects an improvement in earnings ($2.11 versus $1.50).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Technology industry. The net income increased by 146.2% when compared to the same quarter one year prior, rising from $60.06 million to $147.87 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 22.8%. Since the same quarter one year prior, revenues rose by 16.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CERN's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.30, which clearly demonstrates the ability to cover short-term cash needs.
- You can view the full Cerner Ratings Report.
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