EARN25

Upgrade Sparks Cerner Stock Comeback

The IT services provider hit a nearly two-year low on Friday

Managing Editor
Oct 29, 2018 at 9:26 AM
facebook X logo linkedin


The shares of Cerner Corporation (NASDAQ:CERN) are up 2% ahead of the bell, after Leerink upgraded the health IT services provider to "outperform" from "market perform." The analyst in coverage waxed optimistically over the company's presence in international markets, and said the small hospital market could be a growth opportunity.

On Friday, Cerner stock gapped to a 22-month low after the company reported a third-quarter revenue miss and weak current-quarter guidance. The 10.9% one-day drop was the stock's worst since 2003, and brought its year-to-date deficit to nearly 18%. As such, CERN's 14-day Relative Strength Index (RSI) closed Friday at 23, firmly in oversold territory, suggesting a short-term bounce today may be in the cards.

Options traders on Friday targeted a big rebound for CERN stock. Nearly 2,050 calls and 550 puts changed hands, more than three times what's typically seen in an average trading day. Most active were the December 55 and 67.50 calls, with buy-to-open activity detected at each.

However, sentiment in the analyst community is split, with 10 of the 22 brokerages covering the equity rating it a "hold" or "strong sell." Meanwhile, CERN's average 12-month price target of $66.40 is an almost 20% premium to Friday's closing perch of $55.55.

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!