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Company name Cerner Corporation
Stock ticker CERN
Live stock price [stckqut]CERN[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Fair
P/E growth Poor
EBIT growth Fair

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $55.86
Target stock price (averages with growth) $58.18
Target stock price (averages with no growth) $32.57
Target stock price (manual assumptions) $58.1

The following company description is from Google Finance: http://www.google.com/finance?q=cern

Cerner Corporation is a supplier of healthcare information technology (HCIT). The Company offers a range of intelligent solutions and services that support the clinical, financial and operational needs of organizations. Its segments include Domestic and Global. The Domestic segment includes the business activity in the United States. The Global segment includes the business activity in Aruba, Australia, Austria, Belgium, Brazil, Canada, Cayman Islands, Chile, Denmark, Egypt, England, Finland, France, Germany, Guam, India, Ireland, Luxembourg, Malaysia, Mexico, Netherlands, Norway, Portugal, Qatar, Romania, Saudi Arabia, Singapore, Slovakia, Spain, Sweden, Switzerland and the United Arab Emirates. It offers software, hardware, professional and managed services. Its solutions are offered on the unified Cerner Millennium architecture and on the HealtheIntent cloud-based platform. Its solutions include Cerner ITWorks, Cerner RevWorks, PowerWorks and CommunityWorks, among others.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Cerner Corporation as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I am removing Cerner from my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Cerner Corporation calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $58.8
  • Growth: 0.1
  • Current EPS (TTM): $1.66
  • P/E: 35
  • Future EPS Calc: $2.67
  • Future Stock Price Calc: $93.57
  • Target stock price: $58.1

[/s2If]
I hope that this makes you a Confident Investor.

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After beating expectations in its first two FY 2016 earnings reports,Microsoft’s [stckqut]MSFT[/stckqut] multi-year turnaround seemed like it might finally have taken root. Unfortunately, its earnings miss last week came as a sharp rebuke to that idea, a fact not missed by investors.

To chart its path into the post-PC world, Microsoft has placed aggressive bets in growth markets, including big data and productivity tools. At the same time, many view Microsoft’s cloud-computing business as, perhaps, the company’s biggest opportunity, which is why investors should take note of the relatively weak performance of its cloud business this past quarter.

Though far from cataclysmic, Microsoft’s cloud business showed several signs of weakness in Q3, especially when considered in total. For starters, though growing faster than other reporting segments, Microsoft’s intelligent cloud business produced its slowest growth thus far in its fiscal 2016.

Source: Are Microsoft’s Weakening Cloud Margins a Cause for Concern?

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Company name Cerner Corporation
Stock ticker CERN
Live stock price [stckqut]CERN[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $110.36
Target stock price (averages with growth) $123.74
Target stock price (averages with no growth) $56.77
Target stock price (manual assumptions) $91.79

The following company description is from Google Finance: http://www.google.com/finance?q=cern

Cerner Corporation (Cerner) is a healthcare information technology company. The Company offers a range of software, professional services, medical device integration, remote hosting and employer health and wellness services. It designs, develops, markets, installs, hosts and supports healthcare information technology, health care devices, hardware and content solutions for healthcare organizations and consumers. The Company also provides range of value-added services, including implementation and training, remote hosting, operational management services, revenue cycle services, support and maintenance, healthcare data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs and third-party administrator services for employer-based health plans. Cerner’s systems are used by individual consumers, single-doctor practices, hospitals, employers and entire countries.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Cerner Corporation.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Cerner Corporation calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $73.4
  • Growth: 0.15
  • Current EPS (TTM): $1.5
  • P/E: 49
  • Future EPS Calc: $3.01
  • Future Stock Price Calc: $147.83
  • Target stock price: $91.79

[/s2If]
I hope that this makes you a Confident Investor.