Trade-Ideas: Cerner (CERN) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader 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 $152.8 million.
- CERN is up 5.2% today from today's close.
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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 46. Currently there are 22 analysts that rate Cerner a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Cerner has been 2.5 million shares per day over the past 30 days. Cerner has a market cap of $22.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.10 and a short float of 5% with 6.95 days to cover. Shares are up 2.3% year-to-date as of the close of trading on Monday.
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Analysis:
rates Cerner as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 36.6%. Since the same quarter one year prior, revenues rose by 32.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- CERN's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CERN has a quick ratio of 2.01, which demonstrates the ability of the company to cover short-term liquidity needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Health Care Technology industry and the overall market, CERNER CORP's return on equity exceeds that of both the industry average and the S&P 500.
- 47.00% is the gross profit margin for CERNER CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.21% is above that of the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.
- You can view the full Cerner Ratings Report.
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