Cerner Corporation (CERN): Today's Featured Technology Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Cerner Corporation ( CERN) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Cerner Corporation fell 98 cents (-1.3%) to $72.82 on average volume. Throughout the day, 1.2 million shares of Cerner Corporation exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $72.76-$73.99 after having opened the day at $73.72 as compared to the previous trading day's close of $73.80. Other companies within the Technology sector that declined today were: Winland Electronics ( WEX), down 11.1%, Jacada ( JCDA), down 11.1%, TigerLogic Corporation ( TIGR), down 10.8%, and Nexxus Lighting ( NEXS), down 10.2%.

Cerner Corporation designs, develops, markets, installs, hosts, and supports healthcare information technology, healthcare devices, and content solutions for healthcare organizations and consumers worldwide. Cerner Corporation has a market cap of $12.9 billion and is part of the computer software & services industry. The company has a P/E ratio of 37.1, above the average computer software & services industry P/E ratio of 36.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 23% year to date as of the close of trading on Monday. Currently there are eight analysts that rate Cerner Corporation a buy, one analyst rates it a sell, and seven rate it a hold.

TheStreet Ratings rates Cerner Corporation as a buy. 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, A123 Systems ( AONE), up 24.5%, Sigmatron International ( SGMA), up 20.6%, Rediff.com India ( REDF), up 19.1%, and Motricity ( MOTR), up 18.7%, were all gainers within the technology sector with Sap AG ADR ( SAP) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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