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

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 higher today making it today's featured technology winner. The sector as a whole closed the day down 0.5%. By the end of trading, Cerner Corporation rose $2.89 (3.9%) to $77.39 on heavy volume. Throughout the day, 3.1 million shares of Cerner Corporation exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in a price between $74.56-$78.09 after having opened the day at $74.64 as compared to the previous trading day's close of $74.50. Other companies within the Technology sector that increased today were: Allscripts-Misys Healthcare Solutions ( MDRX), up 14.2%, Identive Group ( INVE), up 11.9%, Remark Media ( MARK), up 11.3%, and Dialogic ( DLGC), up 10%.
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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 $12.68 billion and is part of the computer software & services industry. The company has a P/E ratio of 36.5, above the average computer software & services industry P/E ratio of 36.3 and above the S&P 500 P/E ratio of 17.7. Shares are up 20.9% year to date as of the close of trading on Thursday. Currently there are nine analysts that rate Cerner Corporation a buy, one analyst rates it a sell, and six 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 no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Deltathree ( DDDC), down 13%, LDK Solar Company ( LDK), down 12.8%, Nexxus Lighting ( NEXS), down 12.5%, and Alvarion ( ALVR), down 12.4%, were all laggards within the technology sector with F5 Networks ( FFIV) being today's technology sector laggard.

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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