Cerner Corp (CERN) — Cerner is a leading supplier of healthcare information technology, healthcare devices and services, servicing both domestic and European markets. It recently acquired Siemens’ Health Systems and was selected by the Vienna-based Austrian Workers’ Compensation Board to deploy its systems in their hospitals and rehabilitation centers. A Zacks analyst said the Austrian contract will continue to boost CERN’s international revenues, which increased 44% in Q1 ’15.
The Defense Health Agency chose Cerner to replace its old system in DOD military treatment centers. Other major contracts are in the pipeline.
Zacks says the company is well-positioned for forward growth, and the company projects 41% year-over-year growth this year. Consensus earnings estimates (26 analysts) are for EPS of $2.54 in 2016, up from an estimated $2.12 in 2015, while revenues are expected to rise to $5.40 billion vs. $4.73 billion.
Cerner broke from a low at under $50 in April 2014 and ran in an orderly channel to a new all-time high at over $75 in April 2015. Since then, CERN has consolidated its gain in a cup bounded by its 200-day moving average at $67.32 and a double-top resistance line at $73.50. Accumulation has been high in June and July, and the resistance line is now under attack.
Initial support on a pullback is at $68.50 (50-day MA). A break through resistance should result in a new high and a run to about $85 by September for a short-term gain of over 18%.
