Is Cerner Corporation (CERN) A Good Stock To Buy?

As one would reasonably expect, key hedge funds have been driving this bullishness. Echo Street Capital Management, managed by Greg Poole, assembled the most valuable position in Cerner Corporation (NASDAQ:CERN) making it the second biggest holder among elite funds. Clifford Fox’s Columbus Circle Investors also made a $12.3 million investment in the stock during the quarter. The other funds with brand new CERN positions are Paul Sinclair’s Blue Jay Capital Management, David Harding’s Winton Capital Management, and Neil Chriss’s Hutchin Hill Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Cerner Corporation (NASDAQ:CERN) but similarly valued. We will take a look at Zoetis Inc (NYSE:ZTS), Edison International (NYSE:EIX), AmerisourceBergen Corp. (NYSE:ABC), and Nidec Corporation (ADR) (NYSE:NJ). This group of stocks’ market caps match CERN’s market cap.

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $1.51 billion. That figure was just $356 million in CERN’s case. Zoetis Inc (NYSE:ZTS) is the most popular stock in this table. On the other hand Nidec Corporation (ADR) (NYSE:NJ) is the least popular one with only 4 bullish hedge fund positions. Cerner Corporation (NASDAQ:CERN) is not the least popular stock in this group, but hedge fund interest is still below average. Since this is a slightly negative signal, we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ZTS might be a better candidate to consider a long position.