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Cerner Is a Buy on a Pullback

Following the big gap made on Friday, we may have a chance to buy Cerner at $74

   

Cerner (NASDAQ:CERN) — This leading supplier of health care information technology is in a powerful bull channel that began in November 2010.

We recommended CERN 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 earnings estimates. Then, on May 21, it was recommended to buy on a pullback to $75, and it ran to over $88.

On July 9, I said, “Now CERN has turned from the top of its bull channel, so try to buy it on a pullback to around $80. Our target is still at $95. Note the high volatility of this stock, which can be an advantage to the trader and long-term buyer. But don’t chase this stock. Let it come to you.”

And on Sept. 24, with the stock at $74, I said, “The current opinion of analysts has not changed and neither has mine.”

Last week, CERN retreated to the bottom of its bull channel under $68, and on Friday, popped by almost $9 on better-than-expected earnings per share of 58 cents versus an estimated 45 cents for the quarter. The company also raised its long term-earnings and revenue estimates.

My target is still $95, but following the big gap made on Friday, it may give us a chance to buy again at about $74.

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Article printed from InvestorPlace Media, http://investorplace.com/2012/10/trade-of-the-day-cerner-nasdaq-cern-3/.

©2014 InvestorPlace Media, LLC

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