Cerner Is Almost Back in Range

by Sam Collins | May 21, 2012 2:30 am

Cerner Is Almost Back in Range

Cerner (NASDAQ:CERN[1]), 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[2] 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.

Collins cern pix 300x185 Cerner Is Almost Back in Range
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Note 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.

 

 

Endnotes:
  1. CERN: http://studio-5.financialcontent.com/investplace/quote?Symbol=CERN
  2. We recommended it on Oct. 21: http://investorplace.com/2011/10/trade-of-the-day-cerner-corp-nasdaq-cern/

Source URL: http://investorplace.com/2012/05/trade-of-the-day-cerner/
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