Cerner Corporation (NASDAQ:CERN), a supplier of health care information technology solutions, is differentiating itself in the industry and from its largest competitor, Epic, with its population health management efforts, and with strong bookings and earnings growth is a promising play, says David H. Windley, Managing Director at Jefferies & Company, Inc.
"We really like Cerner. I think Cerner is in step with demand, and with their efforts around population health management functionality, Cerner seems to be stepping ahead of the demand curve in a way that is differentiating them from its largest competitor, Epic, which has been the dominant player in the space for quite a long time," Windley said.
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In addition to encouraging developments at Cerner in regard to competition with the top player in the space, the company also has strong fundamentals that support the stock, Windley says.
"Cerner's bookings momentum has continued to be strong. Its balance sheet is ironclad, and its earnings growth is solid. The valuation is high, and if there's an element of pushback from investors, it is a desire to see that bookings performance translate into faster earnings growth as well," Windley said.