Cerner stock: buy or sell?

CERN stock price: $68.44 1.12% At close on September 20th, 2019

Updated on:
September 20th, 2019

3

Cerner shares stepped up 1.12% to $68.44 today.

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

Should I buy Cerner stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Cerner stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean CERN will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Cerner stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we collected 14 ratings published for CERN stock in the last 30 days.

The general sentiment of these ratings is bullish for CERN stock, with 10 positive ratings.
Is CERN a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-23Morgan Stanleyn/aUnderweight
2019-8-23Jefferies Financial GroupBuyHold
2019-8-22ArgusHoldBuy
2019-8-16KeyCorpn/aOverweight
2019-7-8Cantor Fitzgeraldn/aOverweight
2019-7-25Wells Fargo & Con/aOutperform
2019-7-25Citigroupn/aBuy
2019-7-25Canaccord Genuityn/aBuy
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 shares stepped up 1.12% to $68.44 today.

Cerner ended today at $68.44 and stepped up a beatiful 1.12%. Since SMA100d and SMA200d crossed up on May, CERN price slid a -2.42%. CERN is soaring again after a 3.31% correction from its last top on September/12 at $69.20. In the last 28 days when CERN stock price broke down the SMA100d line, it slid $-3.24 per share (-4.52%). On July, CERN hit new all time highs, pushing higher previous ATH of $76.20 recorded on July. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

CERN stock chart (daily)

Weekly outlook

Cerner ended this week at $68.44 and appreciated a tiny 0.87%.

Not so far away is the last all-time high Cerner marked early July. Late May, SMA20w and SMA40w crossed up triggering a rise of 0.19%. Since price and SMA40w lines crossed up early April, CERN climbed $11.26 (19.69%).

CERN stock chart (weekly)

Cerner stock price history

Cerner IPO was on December 5th, 1986 at $0.26 per share1. Since then, CERN stock surged a 26,223.10%, with a yearly average of 819.50%. If you had invested $1,000 in Cerner stock in 1986, it would worth $262,231.00 today.

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

Cerner stock historical price chart

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

Cerner stock price target is $74.30

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 12 price predictions for CERN stock:
CERN stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-23Morgan StanleyRaises Target$49.00$62.0026.5%
2019-8-23Jefferies Financial GroupDowngrades$69.00$75.008.7%
2019-8-16KeyCorpReiterates$76.00$82.007.9%
2019-7-8Cantor FitzgeraldRaises Target$75.00$85.0013.3%
2019-7-25Wells Fargo & CoReiterates$72.00$80.0011.1%
2019-7-25CitigroupRaises Target$77.00$84.009.1%
2019-7-25Canaccord GenuityRaises Target$77.00$80.003.9%
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)$70.10$74.306.0%
Moving in a range from $85.00 and $47.00, the price target for CERN stock is $74.30. In average, analysts' outlook on CERN price target is positive, upgrading the prediction by a 6.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when Cerner presented its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
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 gain of 4.36% to $5,366.33 million USD. Instead, its earnings margin (compared to sales) eased to 11.74%, that is $630.06 million.

Cerner presents anual results in December, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Cerner TTM sales up to March 2019 were $5,463.34 and income $636.28 million dollars. When comparing this TTM figures with the last reported annuality, we can esteem Cerner business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, gained 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 reported $1,389.88 M in sales for 2019-Q1, a 1.77% improvement compared to previous quarter. Reported quarter income marked $166.22 M 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 increase and soared a 7.50%. Looking back to recent quarterly results, Cerner posted 2 positive 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 company, it's always worth to overview its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Cerner, 4.42% of all outstanding shares are owned by its staff.

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

The following table compares ownership indicators for other stocks related to Cerner:

CERNCPSIDXCGEHMSY
Market cap$21.8 B$333.9 M$8.3 B$82.2 B$3.2 B
Total shares318.4 M14.4 M262.0 M8,730.0 M87.4 M
Float shares307.1 M13.1 M260.7 M8,710.0 M85.7 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

Friday, September 20th, 2019
Open$67.45
Close$68.44
Day range$67.41 - $68.63
Previous close$67.68
Session gain1.12%
Average true range$1.28
50d mov avg$70.41
100d mov avg$70.66
200d mov avg$63.53
Daily patternlb01a
Weekly pattern lb06a

Cerner performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the 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
CERNCerner-5.06%20.45%7.51%
CPSIComputer Programs...-14.40%-21.45%-14.02%
DXCDXC Technology-41.18%-49.86%-66.42%
GEGeneral Electric-9.94%-5.42%-19.14%
HMSYHMS15.82%19.49%15.35%
MCKMcKesson10.69%24.63%10.16%
MDRXAllscripts Health...-8.22%4.95%-27.70%
MMM3M-2.88%-17.03%-20.43%
OMCLOmnicell-20.19%-7.98%5.13%
STRMStreamline Health...-37.70%-0.87%-5.79%

Cerner competitors

One check before investing in any stock is to review a list of its competitors, in this case for Cerner. We picked 9 companies as Cerner competitors as they are in the same industry or have similar market objectives.

Latest Cerner stock news