Back to top

Analyst Blog

Leading healthcare information technology (HCIT) solutions provider, Cerner Corporation (CERN - Analyst Report) recently revealed the acquisition of Labotix Automation Inc. Labotix is a leader in providing flexible and open automation solutions to the clinical laboratory setting. This acquisition is likely to provide expertise for supporting the high volume testing market.

According to Cerner, the acquisition of Labotix has placed the company in a strategic position from where it can focus on helping clients through automation options, as well as reducing errors while upgrading capacity of laboratory processing.

Labotix Automation, started in 1991, is an open automation solution, which functions with all devices prevailing in the market. The company’s worldwide installations have been operating and adapting to changes for more than two decades. Through its worldwide operations, Labotix gained proficiency, knowledge and trust to meet the needs of a laboratory, irrespective of its size.

Now that the acquisition is complete, Cerner aims to offer Labotix’s expertise to its global client-base by enhancing operations in laboratories through assimilation of Cerner’s platforms. According to Labotix the commitment of Cerner combined with its expertise is likely to bring about accuracy and better results.

Cerner remains the trendsetter among pure-play, publicly traded healthcare IT (HCIT) vendors. 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, as it serves a sizeable installed hospital base that requires composite clinically-oriented applications complying with “meaningful use” requirements, reimbursement difficulties and complicated 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 is gradually winding down. Cerner faces stiff competition from established HCIT players, such as Athenahealth (ATHN - Analyst Report). Cerner carries a Zacks Rank #3 (Hold) . However, we are more positive about other stocks such as Cyberonics Inc. (CYBX - Analyst Report) and Given Imaging Ltd. both of which carry a Zacks Rank #1 (Strong Buy) and are expected to do well.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

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 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
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%