Cerner Corporation (CERN): Today's Featured Computer Software & Services 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 Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.2%. By the end of trading, Cerner Corporation fell $2.69 (-3.6%) to $72.56 on heavy volume. Throughout the day, 2.9 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 $72.38-$75.80 after having opened the day at $75.59 as compared to the previous trading day's close of $75.25. Other companies within the Computer Software & Services industry that declined today were: Onstream Media Corporation ( ONSM), down 10.7%, DynaVox ( DVOX), down 9.9%, Net Element ( NETE), down 9.6%, and Ninetowns Technology Group Company ( NINE), down 6.1%.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

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 $13 billion and is part of the technology sector. The company has a P/E ratio of 37.4, above the average computer software & services industry P/E ratio of 37.2 and above the S&P 500 P/E ratio of 17.7. Shares are up 22.9% year to date as of the close of trading on Wednesday. Currently there are nine 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, E2open ( EOPN), up 6.7%, Take-Two Interactive Software ( TTWO), up 6.3%, MakeMusic ( MMUS), up 6.1%, and Bridgeline Digital ( BLIN), up 5.3%, were all gainers within the computer software & services industry with Infosys ( INFY) being today's featured computer software & services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Ollie's Bargain Outlet, Blackstone Group: 'Mad Money' Lightning Round

Ollie's Bargain Outlet, Blackstone Group: 'Mad Money' Lightning Round

Can You Recognize Growth?: Cramer's 'Mad Money' Recap (Tuesday 10/31/2017)

Can You Recognize Growth?: Cramer's 'Mad Money' Recap (Tuesday 10/31/2017)

Cerner Has a Bullish Setup Just Waiting for You

Cerner Has a Bullish Setup Just Waiting for You

Cognizant Technology, Advanced Micro Devices: 'Mad Money' Lightning Round

Cognizant Technology, Advanced Micro Devices: 'Mad Money' Lightning Round

Play Defense, Play the Dollar: Cramer's 'Mad Money' Recap (Tuesday 8/29/17)

Play Defense, Play the Dollar: Cramer's 'Mad Money' Recap (Tuesday 8/29/17)