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Cerner (CERN) Gains As Market Dips: What You Should Know

·3 min read

In the latest trading session, Cerner (CERN) closed at $93.43, marking a +0.03% move from the previous day. This change outpaced the S&P 500's 0.74% loss on the day.

Heading into today, shares of the health care information technology company had gained 1.55% over the past month, outpacing the Medical sector's loss of 2.46% and the S&P 500's loss of 4.6% in that time.

Wall Street will be looking for positivity from Cerner as it approaches its next earnings report date. In that report, analysts expect Cerner to post earnings of $0.87 per share. This would mark year-over-year growth of 14.47%. Our most recent consensus estimate is calling for quarterly revenue of $1.46 billion, up 5.5% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.67 per share and revenue of $6.06 billion. These totals would mark changes of +9.55% and +5.12%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Cerner. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% lower. Cerner is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Cerner is holding a Forward P/E ratio of 25.43. This represents a premium compared to its industry's average Forward P/E of 17.95.

We can also see that CERN currently has a PEG ratio of 1.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CERN's industry had an average PEG ratio of 1.71 as of yesterday's close.

The Medical Info Systems industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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