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 or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cerner Corporation 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 $78.8 million.
- CERN has traded 1.1 million 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 worldwide. CERN has a PE ratio of 39.7. Currently there are 8 analysts that rate Cerner Corporation a buy, 1 analyst rates it a sell, and 9 rate it a hold.
The average volume for Cerner Corporation has been 1.4 million shares per day over the past 30 days. Cerner has a market cap of $16.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.35 and a short float of 6.7% with 14.64 days to cover. Shares are up 26.2% year to date as of the close of trading on Friday.
rates Cerner Corporation as a
. The company's strengths can be seen in multiple areas, such as its 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 these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 12.3%. Since the same quarter one year prior, revenues rose by 11.0%. 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 0.06 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 2.47, 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.
- 48.08% 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 15.95% is above that of the industry average.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 44.87% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CERN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- You can view the full Cerner Corporation Ratings Report.