Cerner Looking Toward New Opportunities To Drive The Next Leg Of Growth

It's hard not to respect what Cerner (CERN) has accomplished over the years. Not only is this one of the leading companies in healthcare IT, but the stock's 20% annualized return over the past 15 years is double that of the S&P 500 and about a third better than its peer group (health IT services), as the company has delivered double-digit growth in revenue and 20%-plus growth in free cash flow. All of that said, it's harder for me to make such a bullish case today, with the shares already discounting better than 10% long-term annualized free cash flow growth. Although developments like the VA contract and ongoing growth in the population health business should help stoke ongoing growth for many years to come, I'd prefer to wait for a pullback.

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Cerner Looking Toward New Opportunities To Drive The Next Leg Of Growth