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Here's Why Investors Should Buy Bruker (BRKR) Stock Now
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Bruker Corporation (BRKR - Free Report) is well-poised for growth in the coming quarters due to the strength of Bruker Scientific Instruments (“BSI”) BioSpin and Nano group. The timsTOF platform continues to drive growth in the life science mass spectrometry business of the BSI CALID group.
However, the company’s operations are subject to intense competition from its peers in the industry. Unfavorable economic conditions may adversely impact Bruker’s performance and results of operations.
In the past year, this Zacks Rank #2 (Buy) stock has increased 14.9% against the 0.4% fall of the industry and a 19.2% rise of the S&P 500 composite.
The renowned medical device company has a market capitalization of $9.42 billion. Bruker projects a long-term estimated earnings growth rate of 18.5% compared with 14% of the industry. BRKR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.96%.
Let’s delve deeper.
Upsides
Strong Prospects of BioSpin: Bruker BioSpin’s performance continues to reflect strong growth across the academic government, industrial research and applied markets as well as in its new integrated data solutions division. In the second quarter of 2023, the segment reported strong demand for differentiated instruments, especially in Nuclear Magnetic Resonance and software businesses.
Image Source: Zacks Investment Research
The company has lent its innovations to support the advanced life and materials science research infrastructure in the United Kingdom, which it considers pivotal for the advancement of science, drug discovery and a green-tech economy.
Strength in the BSI Nano Portfolio: Over the past few quarters, NANO’s microelectronics and semiconmetrology tools boomed with strong bookings and a solid backlog. As a group, revenues continue to be driven by the strength of end markets, including academic, government and industrial. In the first half of 2023, the NANO surface division and advanced X-ray delivered strong revenue growth.
Bruker Nano Life Science fluorescence microscopy is gaining on product innovation and research demand. Recently acquired Inscopix strongly contributed to business growth in the second quarter of 2023.
Decent Progress in CALID: Bruker’s CALID group is benefiting from sustained growth in the mass spectrometry business, including the FT-IR, Near IR and Raman molecular spectroscopy product lines. The timsTOF platform continues its adoption in 4D proteomics, epiproteomics and multiomics.
In the last reported quarter, the division’s organic growth was supported by the strong performance of proteomics and molecular spectroscopy. Earlier in June, the company announced transformative sensitivity on the 4D-Proteomics timsTOF platform with the launch of the new timsTOF Ultra.
Downsides
Macroeconomic Challenges: Bruker’s operations are susceptible to inflationary pressures, geopolitical uncertainties, challenges regarding the availability of key raw materials and component fluctuations in foreign currency exchange rates and interest rates. In the second quarter of 2023, BRKR’s non-GAAP gross margin was affected by an unfavorable product mix, as well as currency and inflationary headwinds. The consequence was also felt in the non-GAAP operating margin, additionally affected by transitory currency and acquisition impacts.
A Competitive Landscape: Bruker faces substantial competition in a consolidating industry and expects competition in all of its markets to increase further. Primary competitors mainly include the established companies providing products using existing technologies that perform many of the same functions marketed by Bruker. Unfortunately, a number of Bruker’s peers have expanded their market share in recent years through business combinations. Other companies may also choose to enter Bruker’s fields of operation in the near future.
Estimate Trend
The Zacks Consensus Estimate for Bruker’s 2023 earnings per share (EPS) has remained constant at $2.57 in the past 30 days.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $2.88 billion. This suggests a 13.97% rise from the year-ago reported number.
Haemonetics has an estimated earnings growth rate of 26.1% for fiscal 2024 compared with the industry’s 18.7%. HAE’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 19.39%. Its shares have rallied 15.2% against the industry’s 2.8% fall in the past year.
Align Technology, carrying a Zacks Rank #2 at present, has a long-term estimated earnings growth rate of 17.5% compared with the industry’s 12.8%. Shares of the company have increased 30.7% compared with the industry’s 22.9% growth over the past year.
ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once. In the last reported quarter, it delivered an average earnings surprise of 9.9%.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 14.3% compared with the industry’s 12.8%. Shares of CAH have increased 33.1% compared with the industry’s 22.9% growth over the past year.
CAH’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 16.03%. In the last reported quarter, it delivered an average earnings surprise of 4.73%.
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Here's Why Investors Should Buy Bruker (BRKR) Stock Now
Bruker Corporation (BRKR - Free Report) is well-poised for growth in the coming quarters due to the strength of Bruker Scientific Instruments (“BSI”) BioSpin and Nano group. The timsTOF platform continues to drive growth in the life science mass spectrometry business of the BSI CALID group.
However, the company’s operations are subject to intense competition from its peers in the industry. Unfavorable economic conditions may adversely impact Bruker’s performance and results of operations.
In the past year, this Zacks Rank #2 (Buy) stock has increased 14.9% against the 0.4% fall of the industry and a 19.2% rise of the S&P 500 composite.
The renowned medical device company has a market capitalization of $9.42 billion. Bruker projects a long-term estimated earnings growth rate of 18.5% compared with 14% of the industry. BRKR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.96%.
Let’s delve deeper.
Upsides
Strong Prospects of BioSpin: Bruker BioSpin’s performance continues to reflect strong growth across the academic government, industrial research and applied markets as well as in its new integrated data solutions division. In the second quarter of 2023, the segment reported strong demand for differentiated instruments, especially in Nuclear Magnetic Resonance and software businesses.
Image Source: Zacks Investment Research
The company has lent its innovations to support the advanced life and materials science research infrastructure in the United Kingdom, which it considers pivotal for the advancement of science, drug discovery and a green-tech economy.
Strength in the BSI Nano Portfolio: Over the past few quarters, NANO’s microelectronics and semiconmetrology tools boomed with strong bookings and a solid backlog. As a group, revenues continue to be driven by the strength of end markets, including academic, government and industrial. In the first half of 2023, the NANO surface division and advanced X-ray delivered strong revenue growth.
Bruker Nano Life Science fluorescence microscopy is gaining on product innovation and research demand. Recently acquired Inscopix strongly contributed to business growth in the second quarter of 2023.
Decent Progress in CALID: Bruker’s CALID group is benefiting from sustained growth in the mass spectrometry business, including the FT-IR, Near IR and Raman molecular spectroscopy product lines. The timsTOF platform continues its adoption in 4D proteomics, epiproteomics and multiomics.
In the last reported quarter, the division’s organic growth was supported by the strong performance of proteomics and molecular spectroscopy. Earlier in June, the company announced transformative sensitivity on the 4D-Proteomics timsTOF platform with the launch of the new timsTOF Ultra.
Downsides
Macroeconomic Challenges: Bruker’s operations are susceptible to inflationary pressures, geopolitical uncertainties, challenges regarding the availability of key raw materials and component fluctuations in foreign currency exchange rates and interest rates. In the second quarter of 2023, BRKR’s non-GAAP gross margin was affected by an unfavorable product mix, as well as currency and inflationary headwinds. The consequence was also felt in the non-GAAP operating margin, additionally affected by transitory currency and acquisition impacts.
A Competitive Landscape: Bruker faces substantial competition in a consolidating industry and expects competition in all of its markets to increase further. Primary competitors mainly include the established companies providing products using existing technologies that perform many of the same functions marketed by Bruker. Unfortunately, a number of Bruker’s peers have expanded their market share in recent years through business combinations. Other companies may also choose to enter Bruker’s fields of operation in the near future.
Estimate Trend
The Zacks Consensus Estimate for Bruker’s 2023 earnings per share (EPS) has remained constant at $2.57 in the past 30 days.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $2.88 billion. This suggests a 13.97% rise from the year-ago reported number.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Align Technology (ALGN - Free Report) and Quanterix (QTRX - Free Report) .
Haemonetics has an estimated earnings growth rate of 26.1% for fiscal 2024 compared with the industry’s 18.7%. HAE’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 19.39%. Its shares have rallied 15.2% against the industry’s 2.8% fall in the past year.
HAE carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology, carrying a Zacks Rank #2 at present, has a long-term estimated earnings growth rate of 17.5% compared with the industry’s 12.8%. Shares of the company have increased 30.7% compared with the industry’s 22.9% growth over the past year.
ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once. In the last reported quarter, it delivered an average earnings surprise of 9.9%.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 14.3% compared with the industry’s 12.8%. Shares of CAH have increased 33.1% compared with the industry’s 22.9% growth over the past year.
CAH’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 16.03%. In the last reported quarter, it delivered an average earnings surprise of 4.73%.