Cerner Corporation ($CERN) Possible Buy to $60 Confident Investor Rating: Good
| Company name | Cerner Corporation |
| Stock ticker | CERN |
| Live stock price | [stckqut]CERN[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $55.8 |
| Target stock price (averages with growth) | $72.71 |
| Target stock price (averages with no growth) | $55.39 |
| Target stock price (manual assumptions) | $63.74 |
The following company description is from Google Finance: http://www.google.com/finance?q=cern
Cerner Corporation is a supplier of healthcare information technology solutions, services, devices and hardware. Cerner solutions optimize processes for healthcare organizations. These solutions are licensed by 9,300 facilities globally, including more than 2,650 hospitals; 3,750 physician practices 40,000 physicians; 500 ambulatory facilities, such as laboratories, ambulatory centers, cardiac facilities, radiology clinics and surgery centers; 800 home health facilities; 40 employer sites and 1,600 retail pharmacies. It operates in two segments: domestic, which includes revenue contributions and expenditures associated with business activity in the United States, and global, which includes revenue contributions and expenditures linked to business activity in Argentina, Aruba, Canada, Cayman Islands, Chile, Puerto Rico, Saudi Arabia, Singapore, Spain and the United Arab Emirates. Effective March 18, 2013, it acquired Labotix Automation Inc.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Cerner Corporation.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.
How was this analysis calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $51.22
Growth: 0.15
Current EPS (TTM): $1.16
P/E: 44
Future EPS Calc: $2.33
Future Stock Price Calc: $102.65
Target stock price: $63.74
I hope that this makes you a better investor. [/s2If]