Top Stock to Buy #3 – Cerner Corp. (CERN)
Cerner Corp. (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, 2011, at about $66 with a target of $75. It made it to over $78 in March, and then ran to a high of over $84 after crushing analysts’ Q1 estimates.
Then, on May 21, it was recommended to buy the stock on a pullback to $75 and it ran to over $88. And on July 9, I said, “CERN has turned from the top of its bull channel, so try to buy it on a pullback at around $80.”
The high volatility of this stock can be used to the advantage of traders and long-term buyers. CERN has retreated to the bottom of its bull channel and is below our buy point. Late in September, CERN jumped from the major support line (red dotted) and through the 50-day and 200-day moving averages — it is time to buy. Note the buy signal from its MACD. The target is $95.