Stock of the Day

February 14, 2020

Cerner (CERN)

$94.92
$0.00 (0.0%)
Market Cap: $27.92B

About Cerner

Cerner Corporation, together with its subsidiaries, provides health care information technology solutions and tech-enabled services in the United States and internationally. It offers Cerner Millennium architecture, a person-centric computing framework, which includes clinical, financial, and management information systems that allow providers to access an individual's electronic health record (EHR) at the point of care, and organizes and delivers information for physicians, nurses, laboratory technicians, pharmacists, front- and back-office professionals, and consumers. The company also provides HealtheIntent platform, a cloud-based platform to aggregate, transform, and reconcile data across the continuum of care; and CareAware, an EHR agnostic platform that facilitates connectivity of health care devices to EHRs. In addition, it offers a portfolio of clinical and financial healthcare information technology solutions, as well as departmental and care coordination solutions. Further, the company provides tech-enabled services, such as implementation and training, remote hosting, application management, revenue cycle, support and maintenance, health care data analysis, real-world evidence, clinical process optimization, transaction processing, employer health centers, and data-driven services; and complementary hardware and devices for third parties. It serves integrated delivery networks, physician groups and networks, managed care organizations, hospitals, medical centers, free-standing reference laboratories, home health agencies, blood banks, imaging centers, pharmacies, pharmaceutical manufacturers, employers, governments, and public health organizations. The company was founded in 1979 and is headquartered in North Kansas City, Missouri.

Cerner Bull Case

Here are some ways that investors could benefit from investing in Cerner Co.:

  • Cerner Co. has a strong market position in health care technology, providing essential solutions like the Cerner Millennium architecture, which enhances patient care by giving healthcare providers access to comprehensive electronic health records (EHR) at the point of care.
  • The company’s HealtheIntent platform is a cutting-edge cloud-based solution that aggregates and reconciles data across the continuum of care, making it a valuable asset for healthcare organizations looking to improve data management and patient outcomes.
  • As of now, Cerner Co.'s stock price is competitive, reflecting its robust business model and growth potential in the expanding health care technology sector.
  • Cerner Co. offers a diverse portfolio of tech-enabled services, including implementation, training, and health care data analysis, which can lead to recurring revenue streams and increased customer loyalty.
  • The company serves a wide range of clients, including hospitals and public health organizations, which diversifies its revenue sources and reduces dependency on any single market segment.

Cerner Bear Case

Investors should be bearish about investing in Cerner Co. for these reasons:

  • The health care technology industry is highly competitive, with numerous players vying for market share, which could pressure Cerner Co.'s pricing and profit margins.
  • Recent regulatory changes in the health care sector may pose challenges for Cerner Co., potentially impacting its operations and compliance costs.
  • While Cerner Co. has a strong product offering, the rapid pace of technological advancement means that it must continuously innovate to stay relevant, which can strain resources.
  • Investors may be concerned about the company's dependency on large contracts with health care providers, as losing a major client could significantly affect revenue.
  • Market volatility and economic uncertainties can impact health care spending, which may lead to reduced budgets for technology investments by potential clients of Cerner Co.

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