Momentum Stock Watch: Cerner Corporation (CERN)

Company Profile:

Cerner Corporation provides health care information technology solutions and tech-enabled services in the United States and internationally. The company offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual’s electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers. It has a strategic collaboration with Christiana Care Health System to provide a weight loss surgery program. Cerner Corporation was founded in 1979 and is headquartered in North Kansas City, Missouri.

Recent News:

For the 2019 third quarter that ended Sept. 28, 2019, the company reported bookings were at the high-end of the company’s expectations at $1.651 billion. Revenue was $1.429 billion, an increase of 7% compared to $1.340 billion in the third quarter of 2018. Adjusted Net Earnings were $211.7 million, compared to $209.4 million of Adjusted Net Earnings in the third quarter of 2018.

On Oct. 18, 2019, the company announced a definitive agreement to acquire AbleVets—a strategic IT consulting and engineering firm—as a wholly-owned subsidiary. The acquisition of the Washington, DC area-based company will provide Cerner even greater scale and technical expertise in designing and implementing modernization solutions, particularly in the federal space.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

CERN’s strengths can be seen in its better profitability and better solvency compared with its peers. Its revenue has increased over recently several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator and MACD. The RSI stands at 57.83 with positive bias. We rate Cerner Corporation (CERN) a STRONG BUY.

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