Is it time to Buy before this week’s earning report Cerner (NASDAQ:CERN)

Earnings results for Cerner (NASDAQ:CERN)

Cerner Corporation is expected* to report earnings on 10/28/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 10 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.62. The reported EPS for the same quarter last year was $0.58.

Cerner last issued its earnings results on July 29th, 2020. The reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.02. The business earned $1.33 billion during the quarter, compared to the consensus estimate of $1.36 billion. Its revenue for the quarter was down 7.0% compared to the same quarter last year. Cerner has generated $2.41 earnings per share over the last year and currently has a price-to-earnings ratio of 43.8. Cerner has confirmed that its next quarterly earnings report will be published on Wednesday, October 28th, 2020.

Analyst Opinion on Cerner (NASDAQ:CERN)

15 Wall Street analysts have issued ratings and price targets for Cerner in the last 12 months. Their average twelve-month price target is $77.44, predicting that the stock has a possible upside of 6.46%. The high price target for CERN is $88.00 and the low price target for CERN is $62.00. There are currently 1 sell rating, 5 hold ratings and 9 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Cerner has received a consensus rating of Buy. The company’s average rating score is 2.53, and is based on 9 buy ratings, 5 hold ratings, and 1 sell rating. According to analysts’ consensus price target of $77.44, Cerner has a forecasted upside of 6.5% from its current price of $72.74. Cerner has only been the subject of 4 research reports in the past 90 days.

Dividend Strength: Cerner (NASDAQ:CERN)

Cerner has a dividend yield of 0.99%, which is in the bottom 25% of all stocks that pay dividends. Cerner does not have a long track record of dividend growth. The dividend payout ratio of Cerner is 29.88%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Cerner will have a dividend payout ratio of 24.66% next year. This indicates that Cerner will be able to sustain or increase its dividend.

Insiders buying/selling: Cerner (NASDAQ:CERN)

In the past three months, Cerner insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $1,016,824.00 in company stock. Only 0.33% of the stock of Cerner is held by insiders. 83.30% of the stock of Cerner is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Cerner (NASDAQ:CERN

Earnings for Cerner are expected to grow by 18.22% in the coming year, from $2.47 to $2.92 per share. The P/E ratio of Cerner is 43.82, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.17. The P/E ratio of Cerner is 43.82, which means that it is trading at a more expensive P/E ratio than the Medical sector average P/E ratio of about 28.94. Cerner has a PEG Ratio of 2.72. PEG Ratios above 1 indicate that a company could be overvalued. Cerner has a P/B Ratio of 5.26. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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