Will Cerner recuperate?

This post will outline Cerner. I will go over what exactly are Cerner shareholders getting in January. Cerner follows market closely. The returns on investing in Cerner and the market returns of the last few months appear not sensitive to each other. The proof of persistent forward indicators of the corporation entails short term price swing for partners of the corporation. We consider Cerner very steady. Cerner secures Sharpe Ratio (or Efficiency) of 0.1165 which signifies that the organization had 0.1165% of return per unit of risk over the last 1 month. Our philosophy towards foreseeing volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Cerner Corporation which you can use to evaluate future volatility of the firm. Please confirm Cerner Risk Adjusted Performance of 0.1628, Mean Deviation of 0.7242 and Downside Deviation of 0.9269 to double-check if risk estimate we provide are consistent with the epected return of 0.1057%.
Published over a year ago
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Reviewed by Michael Smolkin

This firm average rating is Buy from 21 analysts. As of the 21th of December Cerner shows Downside Deviation of 0.9269, Mean Deviation of 0.7242 and Risk Adjusted Performance of 0.1628. Cerner technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm future prices. In plain English you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum or the prices will eventually revert. We found nineteen technical drivers for Cerner Corporation which can be compared to its rivals. Please confirm Cerner Standard Deviation, Maximum Drawdown as well as the relationship between Maximum Drawdown and Expected Short fall to decide if Cerner is priced correctly providing market reflects its regular price of 73.26 per share. Given that Cerner has Jensen Alpha of 0.1195, we suggest you validate Cerner Corporation prevailing market performance to make sure the company can sustain itself at future point.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Cerner Corp. In general, sophisticated investors focus on analyzing Cerner Corp stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Cerner Corp's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Cerner Corp's intrinsic value. In addition to deriving basic predictive indicators for Cerner Corp, many experienced traders also check how macroeconomic factors affect Cerner Corp price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cerner Corp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cerner Corp. Your research has to be compared to or analyzed against Cerner Corp's peers to derive any actionable benefits. When done correctly, Cerner Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Cerner Corp.

How important is Cerner Corp's Liquidity

Cerner Corp financial leverage refers to using borrowed capital as a funding source to finance Cerner Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cerner Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cerner Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cerner Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Cerner Corp's total debt and its cash.

A Deeper Perspective

The modest gains experienced by current holders of Cerner could raise concerns from investors as the firm closed today at a share price of 71.58 on very low momentum in volume. The company directors and management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in November. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 0.907. The very small Stock volatility is a good signal to investors with longer term investment horizons. Cerner preserves 46.99  of price to earning. Cerner is trading at 73.26 which is 1.81 percent up. Today lowest is 71.58. Cerner Debt Current is decreasing over the last 6 years. Also, Cerner Depreciation Amortization and Accretion is quite stable at the moment.
 2012 2016 2017 2019 (projected)
Consolidated Income539.36 M636.48 M630.06 M593.93 M
Direct Expenses2.59 B2.85 B3.43 B2.37 B
Cerner Corporation provides health care information technology solutions and tech-enabled services in the United States and internationally. Cerner Corporation was founded in 1979 and is headquartered in North Kansas City, Missouri. Cerner operates under Health Information Services classification in USA and is traded on BATS Exchange. It employs 29200 people.
Consolidated IncomeDirect Expenses
To conclude, our overall 'Buy/Hold/Sell' recommendation on the corporation is Hold. We believe Cerner is undervalued with very small probability of distress for the next two years.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Cerner Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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