Cerner (CERN) Is Today's Post-Market Loser Stock
Trade-Ideas LLC identified
(
) as a post-market laggard 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 $85.0 million.
- CERN is down 6.4% today from today's close.
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More details on CERN:
Cerner Corporation designs, develops, markets, installs, hosts, and supports health care information technology, health care devices, hardware, and content solutions for health care organizations and consumers in the United States and internationally. CERN has a PE ratio of 37. Currently there are 19 analysts that rate Cerner a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Cerner has been 2.7 million shares per day over the past 30 days. Cerner has a market cap of $19.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.04 and a short float of 5.6% with 10.20 days to cover. Shares are down 7.4% 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- CERN's revenue growth has slightly outpaced the industry average of 19.5%. Since the same quarter one year prior, revenues rose by 26.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the 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 1.99, which demonstrates the ability of the company to cover short-term liquidity needs.
- CERNER CORP has improved earnings per share by 14.3% 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 $1.55 versus $1.50 in the prior year. This year, the market expects an improvement in earnings ($2.35 versus $1.55).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Health Care Technology industry average. The net income increased by 12.3% when compared to the same quarter one year prior, going from $147.87 million to $166.11 million.
- 47.24% 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 14.13% is above that of the industry average.
- You can view the full Cerner Ratings Report.
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