This medtech stock was also recently recommended by TheStreet.com, who cited its double-digit earnings, under-valuation and stock buybacks as attractive.
Cerner Corporation (CERN)
From PAD System Report
We are replacing healthcare tech stock Varian Medical Systems, Inc. (VAR) with Cerner Corporation (CERN). If we match Cerner and Varian by the numbers, which is the best way to judge a switch, Varian wins on Safety (1 vs 2) and ties on beta (both 1.0) and financial strength (both A+).
Cerner wins on year-ahead performance (1 vs 3), 3-5 year appreciation potential (50-100% vs 25-55%), projected earnings growth (17% vs 6.5%), and price growth persistence (100 vs 70). Clear winner: Cerner.
Cerner, which makes software and systems to improve medical care delivery, is in an industry which will have a tailwind for decades as Baby Boomers age and require ever-increasing amounts of medical care. Firms which can improve the delivery of health care and, just as important, keep costs down, should witness strong growth in the long run. Cerner should be able maintain its technological edge, since it spends a healthy 11% of revenue on R+D.
Daniel A. Seiver, PAD System Report, www.padsystemreport.com, Dept of Finance, S.D.S.U, San Diego, CA 92181, December 1, 2015