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Cerner (CERN) Banks on RCM & PH Platforms, Competition Rife
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On Mar 29, we issued an updated research report on North Kansas City, MO-based Cerner Corporation – a leading global provider of healthcare information technology solutions (HCIT). The stock currently carries a Zacks Rank #3 (Hold).
We believe that Cerner has solid growth opportunities in the revenue cycle management (RCM) suite of solutions. In fact, the segment has been a strong contributor in 2016 with RevWorks services posting a solid performance. In fact, for the full year, the segment witnessed 19% revenue growth and record level of bookings.
The next biggest driver of growth for Cerner is its Population Health (PH) Management platform. Notably, the company clinched a high number of large contracts for the PH platform in the last reported quarter.
Cerner offers exposure to worldwide healthcare automation. Its international operations provide a more diversified revenue stream. In the past, the company had won contracts in the U.K. as well as the Middle East. Furthermore, Cerner constantly pursues complementary business acquisitions that enable it to expand its solutions, device offerings and services.
On the flipside, Cerner operates in the HCIT space which is intensely competitive and fast evolving, subjecting it to rapid technological changes. Bigwigs like Allscripts Healthcare Solutions, Epic Systems, GE Healthcare Technologies, McKesson Corp, Quality Systems and others pose competitive threat to Cerner in the niche area.
Share Price & Estimate Revision
Cerner’s share price movement has been quite impressive in the past three months. The company gained 24.9%, higher than the Zacks categorized Medical information-systems sub-industry’s return of 17.9%.
On the flip side, the estimate revision trend for the current fiscal remains unfavorable with 11 estimates moving south over the last two months, compared with no movement in the opposite direction. The company’s current estimates slipped 3.3% over the past two months.
Notably, over the last four trailing quarters, the stock posted a negative earnings surprise of almost 0.5%. Cerner ended fourth-quarter 2016 on a mixed note, wherein adjusted earnings beat the Zacks Consensus Estimate, while revenues missed the same.
Key Picks
Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Fluidigm Corporation . Notably, Inogen and IDEXX Laboratories sport a Zacks Rank #1 (Strong Buy) while Fluidigm carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock represents an impressive one-year return of 70.6%.
IDEXX Laboratories has a long-term expected earnings growth rate of 15.04%. Additionally, the stock represents an impressive one-year return of 97.5%.
Fluidigm has a long-term expected earnings growth rate of 25%. The stock posted a positive earnings surprise of 1.6% in the last quarter.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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Cerner (CERN) Banks on RCM & PH Platforms, Competition Rife
On Mar 29, we issued an updated research report on North Kansas City, MO-based Cerner Corporation – a leading global provider of healthcare information technology solutions (HCIT). The stock currently carries a Zacks Rank #3 (Hold).
We believe that Cerner has solid growth opportunities in the revenue cycle management (RCM) suite of solutions. In fact, the segment has been a strong contributor in 2016 with RevWorks services posting a solid performance. In fact, for the full year, the segment witnessed 19% revenue growth and record level of bookings.
The next biggest driver of growth for Cerner is its Population Health (PH) Management platform. Notably, the company clinched a high number of large contracts for the PH platform in the last reported quarter.
Cerner offers exposure to worldwide healthcare automation. Its international operations provide a more diversified revenue stream. In the past, the company had won contracts in the U.K. as well as the Middle East. Furthermore, Cerner constantly pursues complementary business acquisitions that enable it to expand its solutions, device offerings and services.
On the flipside, Cerner operates in the HCIT space which is intensely competitive and fast evolving, subjecting it to rapid technological changes. Bigwigs like Allscripts Healthcare Solutions, Epic Systems, GE Healthcare Technologies, McKesson Corp, Quality Systems and others pose competitive threat to Cerner in the niche area.
Share Price & Estimate Revision
Cerner’s share price movement has been quite impressive in the past three months. The company gained 24.9%, higher than the Zacks categorized Medical information-systems sub-industry’s return of 17.9%.
On the flip side, the estimate revision trend for the current fiscal remains unfavorable with 11 estimates moving south over the last two months, compared with no movement in the opposite direction. The company’s current estimates slipped 3.3% over the past two months.
Notably, over the last four trailing quarters, the stock posted a negative earnings surprise of almost 0.5%. Cerner ended fourth-quarter 2016 on a mixed note, wherein adjusted earnings beat the Zacks Consensus Estimate, while revenues missed the same.
Key Picks
Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Fluidigm Corporation . Notably, Inogen and IDEXX Laboratories sport a Zacks Rank #1 (Strong Buy) while Fluidigm carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock represents an impressive one-year return of 70.6%.
IDEXX Laboratories has a long-term expected earnings growth rate of 15.04%. Additionally, the stock represents an impressive one-year return of 97.5%.
Fluidigm has a long-term expected earnings growth rate of 25%. The stock posted a positive earnings surprise of 1.6% in the last quarter.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>