Cerner Corporation (CERN - Free Report) recently announced a tie-up with Christiana Care Health System to provide bariatric services to Cerner’s health plan members. Notably, it is a safe weight loss surgery program with personalized support that will help members through each stage of the process.
Following the announcement, shares of Cerner inched up 0.1% to $53.88 at close.
More on the Program
Available since Jan 1, the weight loss surgery program is expected to deliver improving health outcomes for patients after bariatric surgery. It also curates a comprehensive and personalized education for members to promote long-term engagement.
For investors’ notice, Delaware-based Christiana Care focuses on improving health outcomes and makes high-quality care more accessible with its extensive network of outpatient services, home health care and medical aid units.
Obesity on a Rise in US
Centers for Disease Control suggests that an average American is very close to being obese. In fact, going by a recent report in CNBC, there are more than 97 million people with obesity in the United States, which is set to increase nearly 3% annually on average. Thus, demand for bariatric services is expected to rise in the times ahead.
An article in SNN News predicts the global bariatric surgery market to see a CAGR of 5.2% between 2019 and 2023.
Hence, the latest development has been a well-timed one for Cerner.
Another key player in the space is Weight Watchers International (WTW - Free Report) whose weight loss and wellness programs deserve a mention in this regard. The company offers both digital and personal coaching to customers.
We believe such positive developments will boost Cerner’s shares, which have slipped 26.1% compared with the industry’s 15.4% decline. The current level is also lower than the S&P 500 index’s 6.7% decline.
Zacks Rank & Key Picks
Cerner currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Veeva Systems Inc. (VEEV - Free Report) and OPKO Health, Inc. (OPK - Free Report) .
Veeva Systems’ long-term earnings growth rate is projected at 19.5%. The stock currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
OPKO Health’s long-term earnings growth rate is projected at 12%. The stock presently sports a Zacks Rank of 1.
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