Cerner stock: buy or sell?

CERN stock price: $74.48 -1.78% At close on July 16th, 2019

Updated on:
July 16th, 2019

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Cerner fell -1.78% today to $74.48 after reaching all time highs on Friday. With Tuesday it's been 3 sliding days in a row, loosing $-1.67 (-2.21%).

Cerner Corporation provides health care information technology solutions and services in the United States and internationally.

Should I buy Cerner stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

These 2 buy setups match with Cerner stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Cerner stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we collected 7 ratings published for CERN stock in the last month.

The general sentiment of these ratings is bullish for CERN stock, with 5 positive ratings.
Is CERN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-8Cantor Fitzgeraldn/aOverweight
2019-5-21Bank of American/aBuy
2019-4-9Cantor Fitzgeraldn/aBuy
2019-4-10SunTrust BanksHoldBuy
2019-4-10Citigroupn/aBuy
2019-4-10Barclaysn/aHold
2019-2-28Morgan StanleyEqual WeightUnderweight

Cerner stock analysis

Daily outlook

Cerner fell -1.78% today to $74.48 after marking all time highs on Friday.

Cerner fell -1.78% to $74.48 after reaching all time highs on Friday. On May, SMA100d and SMA200d crossed up triggering a rise of 6.19%. Since price and SMA200d lines crossed up on April, CERN climbed $17.53 (30.78%). From a daily perspective, CERN is in a short term uptrend after plotting its last bottom ($73.54, on Jul 5th) higher than the previous bottom, and its last top ($76.47, on Friday) also over the previous top. Now trading in between its last bottom and last top CERN might consolidate in a plain range, waiting to break out over $76.47 or down under $73.54. On Friday, CERN hit a new all time high, pushing higher than on Thursday tops. Check different trading setups that use ATHs as triggers.

CERN stock chart (daily)

Weekly outlook

After climbing for 4 weeks, this week Cerner declined a fateful -2.15%, closing at $74.48.

Cerner stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, CERN might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last price record Cerner marked last week. Late May, SMA20w and SMA40w crossed up triggering a rise of 9.03%. Since price and SMA40w lines crossed up early April, CERN climbed $17.30 (30.26%).

CERN stock chart (weekly)

Cerner stock price history

Cerner stock went public on December 5th, 1986 with a price of $0.261. Since then, CERN stock grew a 28,546.20%, with a yearly average of 892.10%. If you had invested $1,000 in Cerner stock in 1986, it would worth $285,462.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Cerner stock historical price chart

CERN stock reached all-time highs on Friday with a price of $76.47.

Cerner stock price target is $71.50

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We have 6 price targets for Cerner stock released in the last month:
CERN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-8Cantor FitzgeraldRaises Target$75.00$85.0013.3%
2019-5-21Bank of AmericaRaises Target$70.00$77.0010%
2019-4-9Cantor FitzgeraldReiteratesn/a$75.00-
2019-4-10CitigroupReiterates$68.00$77.0013.2%
2019-4-10BarclaysReiteratesn/a$68.00-
2019-2-28Morgan StanleyDowngrades$68.00$47.00-30.9%
(in average)$70.30$71.502.0%
Moving in a range from $85.00 and $47.00, the price target for CERN stock is $71.50.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last April, when Cerner published its last earnings report, it escalated an impressive 12.37%. As soon as we get its actual EPS from the earnings report, we will extend this report.
CERN earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.53n/a
2017-Q32017-10-260.620.61-1.6%
2017-Q42018-02-060.610.58-4.9%
2018-Q12018-05-020.530.51-3.8%
2018-Q22018-08-020.550.561.8%
2018-Q32018-10-250.580.57-1.7%
2018-Q42019-02-050.570.570.0%
2019-Q12019-04-300.62n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a nice increase of 4.36% to $5,366.33 million dollars. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) dropped a -5.12% to 11.74%.

To have an up to date view of the financial situation of Cerner, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Cerner TTM sales up to March 2019 were $5,463.34 and income was $636.28 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Cerner business evolution since December 2018: Annual turnover up to March, compared to lastest yearly report, appreciated a slightly good 1.81%. Regarding profit margin, Cerner stayed stable -0.09% to 11.74%

CERN annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2,910 M-$398 M13.7%-
2014$3,403 M16.93%$525 M15.4%31.90%
2015$4,425 M30.05%$539 M12.2%2.65%
2016$4,796 M8.39%$636 M13.3%18.01%
2017$5,142 M7.21%$867 M16.9%36.21%
2018$5,366 M4.36%$630 M11.7%-27.33%
TTM $5,463 M1.81%$636 M11.6%0.99%

Quarterly financial results

Cerner posted $1,389.88 M in sales for 2019-Q1, a 1.77% up compared to previous quarter. Reported quarter earnings marked $166.22 million with a profit margin of 11.96%. Profit margin inched a 2.34% compared to previous quarter when profit margin was 9.62%. When comparing turnover to same quarter last year, Cerner sales marked a shining growth and soared a 7.50%. Looking back to recent quarterly results, Cerner posted 2 negative quarters in a row.
CERN quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$1,290 M-$180 M13.9%-
2017-Q3$1,280 M-0.78%$177 M13.9%-1.26%
2017-Q4$1,314 M2.64%$337 M25.6%89.75%
2018-Q1$1,293 M-1.59%$160 M12.4%-52.47%
2018-Q2$1,368 M5.79%$169 M12.4%5.85%
2018-Q3$1,340 M-2.02%$169 M12.6%0.01%
2018-Q4$1,366 M1.91%$131 M9.6%-22.47%
2019-Q1$1,390 M1.77%$166 M12.0%26.58%

Cerner ownership

When you are planning to buy shares of a stock, it's worth to check its ownership structure.

Cerner shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 4.42% of all shares.

Bearish positions for CERN stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

CERNCPSIDXCGEHMSY
Market cap$24.2 B$401.6 M$15.2 B$89.6 B$2.9 B
Total shares325.4 M14.4 M266.4 M8,720.0 M87.1 M
Float shares314.3 M12.3 M267.5 M8,710.0 M85.6 M
  - Institutional holdings (%)82.8%90.4%88.3%58.6%100.0%
  - Insider holdings (%)4.4%4.6%0.4%0.2%1.6%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Cerner summary

Tuesday, July 16th, 2019
Open$76.03
Close$74.48
Day range$74.14 - $76.14
Previous close$75.83
Session gain-1.78%
Average true range$1.11
50d mov avg$71.38
100d mov avg$65.39
200d mov avg$61.13
Daily patternlt06a
Weekly pattern lt06a

Cerner performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Cerner, the benchmark is made against Computer Programs and Systems, DXC Technology, General Electric, HMS, McKesson, Allscripts Healthcare Solutions, 3M, Omnicell and Streamline Health Solutions.
Stock3m6m12m
CERNCerner19.07%38.10%23.52%
CPSIComputer Programs...-4.28%4.09%-16.68%
DXCDXC Technology-11.51%-8.46%-33.81%
GEGeneral Electric9.96%18.18%-17.51%
HMSYHMS20.46%14.47%39.63%
MCKMcKesson25.66%13.54%8.87%
MDRXAllscripts Health...21.19%-6.15%-1.80%
MMM3M-18.67%-8.48%-10.04%
OMCLOmnicell3.99%9.79%34.72%
STRMStreamline Health...46.94%13.39%2.13%

Cerner competitors

We selected a few stocks to conform a list of Cerner competitors to check if you are interested in investing in CERN:

Latest Cerner stock news