by Sam Collins | May 21, 2012 2:30 am
Cerner (NASDAQ:CERN), a leading supplier of health-care information technology, is in a powerful bull channel that began in November 2010. We recommended it on Oct. 21 at about $66 with a target of $75. The stock made it to over $78 in March and then ran to a high of over $84 after crushing analysts’ first-quarter estimates.
Revenues in Q1 rose 30%, net income was up 37.4% and analysts responded by raising their target to $92 from $82. Technically, the stock turned away from the top of its bull channel, and so a pullback to $75 or under is where we’d like to buy CERN.
Our target is still at $95.
Click to EnlargeNote the high volatility of this stock, which can be an advantage to the trader and long-term buyer. Don’t chase this stock. Let it come to you.
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