Bitcoin sets a new all-time high above $6,000 >>> READ MORE

Cerner’s Run Is Far From Over

Buy CERN on a pullback below $75


Cerner (NASDAQ:CERN) — This leading supplier of health care information technology is in a powerful bull channel that began in November 2010, and the Trade of the Day recommended it on Oct. 21, 2011, at about $66, with a target of $75.

The stock made it to over $78 in March, but then pulled back to $72 on Thursday. Too bad for those who sold, because on Friday, the company crushed analysts’ Q1 earnings estimates and the stock popped to almost $80. Q1 revenues rose 30% and net income was up 37.4%. Analysts raised their target to $92 from $82.

Technically the stock is close to the top of its bull channel, and so a pullback to under $75 is where we’d like to buy CERN with a target of $95. Note the high volatility of this stock. The big gap from $62 to $67 appears to be a breakaway gap that could be filled only in the event of a deep market correction.

Trade of the Day – Cerner (NASDAQ:CERN)
Click to Enlarge

Trade of the Day Chart Key

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC