Back to top

Analyst Blog

Global Capacity, a logistics and telecom data company, recently revealed a partnership with leading healthcare information technology (HCIT) solutions provider Cerner Corporation (CERN - Analyst Report) to implement Cerner Skybox Connect, which is an available private healthcare network.

The Cerner Skybox Connect supports the requirements of the healthcare business. This first-ever private network provides both network and procurement support, which ensures access to compliant healthcare know-how in a reliable, safe and efficient manner.

As per Cerner Corporation, the new network has exceeded expectations in a number of parameters, including reliability. Global Capacity stated that its network provides Cerner’s clients with access to an effective and economical communication network that allows network participants to work with each other.

The Cerner Skybox Connect Network is a phase-by-phase project which should be completed before the end of the current year. Cerner Skybox Connect will permit Cerner to provide the entire set of Cerner Skybox cloud services, including storage and remote desktop.  

Cerner remains the trend setter among pure-play, publicly traded healthcare IT (HCIT) vendors. We believe Cerner has positioned itself as one of the better placed clinical technology vendors to benefit from high HCIT spending over the next few years. The company is diversified not only on a global basis but serves both hospitals and ambulatory outfits. Its integrated solutions have captured market share. While greenfield opportunities are shrinking, the replacement market is growing.

We believe long-term investors may consider Cerner, which serves a sizeable installed hospital base. Its clients require composite clinically-focused applications complying with ‘meaningful use’ requirements and tackling coding challenges. The company has long-standing, integrated and seamless solutions for both inpatient and ambulatory settings.

On the negative side, the federal Stimulus program will gradually wind down. Cerner faces stiff competition from established HCIT players, such as Athenahealth (ATHN - Analyst Report), Allscripts Healthcare Solutions (MDRX - Analyst Report) and Quality Systems (QSII - Analyst Report) and many others in a crowded field. The company is developing multiple growth drivers which will ensure its future growth.

We have a long-term Neutral recommendation on Cerner. The stock currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%