Cerner (CERN) Stock Moves -0.1%: What You Should Know

This story originally appeared on Zacks

In the last trading session, Cerner (CERN) closed at $92.55, recording a 0.1% move from the previous day. This move was narrower than the S&P 500’s daily loss of 1.94%. Meanwhile, the Dow Jones lost 1.07%, and the tech-heavy Nasdaq lost 0.39%.

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Heading into the day, shares of the healthcare IT company are up 25.56% over the past month, outpacing the medical sector’s 2.88% gain and the S&P 500’s 5.72% gain in that time.

Investors are hoping for some strength from Cerner as it nears its next earnings release. In that report, analysts expect Cerner to report earnings of $0.88 per share. This represents an annual growth of 12.82%. Meanwhile, our latest consensus estimate calls for revenue of $1.49 billion, up 6.53% from the prior year quarter.

Investors may also notice recent changes in analyst estimates for Cerner. Recent reviews tend to reflect the latest near-term business trends. With this in mind, we can take the positive rating reviews as a sign of optimism about the company’s business outlook.

Based on our research, we believe that these discretionary reviews are directly related to stock movements close to the team. Investors can take advantage of this using Zacks Rank. This model takes into account these changes in grading and provides a simple and actionable rating system.

Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperforming, with the #1 stock returning an average of +25% annually since 1988. Over the past month, it has risen Zacks Consensus estimate EPS of 0.14%. Cerner currently holds a Zacks rating of 3 (Hold).

Looking at the valuation, Cerner currently has a forward P/E ratio of 25.16. This valuation represents a premium over the industry’s forward P/E average of 24.49.

Meanwhile, CERN’s price-to-price ratio is currently 1.89. This common metric is similar to the widely known price-earnings (P/E) ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Medical Information Systems industry currently has an average price-to-wage ratio of 1.89 as of yesterday’s close.

The medical information systems industry is part of the medical sector. The industry currently has a Zacks Industry Rating of 194, placing it at the bottom 24% of all 250+ industries.

Zacks Industry Ranks are listed in order from best to worst in terms of the average Zacks rating of individual companies in each of these sectors. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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