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Here's Why You Should Buy Bruker (BRKR) Stock Right Now
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Bruker Corporation (BRKR - Free Report) is likely to grow in the coming quarters, backed by the strong potential of the Bruker Scientific Instruments (“BSI”) Nano Group. In BioSpin, strength across end markets, including the new IDS (integrated data solutions) business, sounds encouraging for the company. The CALID Group has also been making decent progress lately, primarily due to the strong demand for differentiated instruments.
Meanwhile, exposure to currency fluctuations, as well as competitive challenges, can potentially hinder the company’s operational results.
In the past year, this Zacks Rank #2 (Buy) stock has increased 3.4% against the 12.9% fall of the industry and a 23.5% rise of the S&P 500 composite.
The renowned medical device company has a market capitalization of $11.77 billion. Bruker projects a long-term estimated earnings growth rate of 14.4% compared with 11.8% of the industry. BRKR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 11.4%.
Let’s delve deeper.
Upsides
BSI Nano Group’s Prospects Bright: Over the past few quarters, NANO’s microelectronics and semiconmetrology tools boomed with solid bookings and a strong backlog. As a group, revenues continue to be driven by the strength of end markets, including academic, government and industrial. The artificial intelligence megatrend is a key factor driving the success of semiconductor metrology and advanced packaging tools.
Bruker NANO Life Science fluorescence microscopy is gaining from product innovation and research demand and also includes a strong contribution from the 2022 acquisition of Inscopix neuroscience research tools. In the fourth quarter of 2023, the company introduced the Hysitron TI 990 TriboIndenter, featuring enhancements such as new measurement modes, 2X faster testing throughput and a larger 200mm x 300mm testing area.
The addition of PhenomeX has expanded Bruker’s footprint in translational research, clinical research and biopharma and also helps its Project Accelerate 2.0 initiative. The company is currently working on rightsizing the business and optimizing cost structures.
Image Source: Zacks Investment Research
Strong Prospects for BioSpin: Bruker BioSpin’s products have specific applications in structural proteomics, drug discovery, research and food and materials science fields. In 2023, the segment registered growth across the biopharma, academic, government, industrial research and applied markets and the new IDS division.
The company's innovations have supported advanced life and materials science research infrastructure in the UK, contributing to scientific advancement, drug discovery and a green-tech economy. Bruker received two orders for 1.2 gigahertz NMRs, which will be placed at the University of Warwick and the University of Birmingham institutions, with both institutions already having Bruker 1.0 GHz NMR spectrometer. In the fourth quarter of 2023, BRKR installed the first 1.2 gigahertz NMR in the United States at Ohio State University and the 1.1 gigahertz NMR at the University of Wisconsin at Madison.
CALID Group Holds Potential: Bruker’s CALID Group is benefiting from the 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 2023, the segment delivered strong high-teens percentage organic growth. The company launched timsTOF Ultra, which provides market-leading sensitivity and throughput with expanded peptide coverage and more accurate quantitation in unbiased 4D single-cell cell lines and tissue proteomics. More enhancements were announced for timsTOF methods, consumables and software for the next-generation unbiased high-fidelity 4D proteomics and 4D multiomics.
In addition, Bruker became a majority investor in the Swiss start-up company MIRO Analytical AG, complementing the gas-analysis spectroscopy portfolio in the company’s Optics division with fast, compact, highest-precision QCL (Quantum Cascade Laser) multi-trace gas analyzers.
Downsides
Exposed to Currency Movement: Bruker generates a substantial portion of its revenues in the international markets, primarily in Germany and other countries in the European Union, Switzerland and Japan. This exposes the company to foreign currency transaction losses due to currency fluctuations. Moreover, such fluctuations could also make Bruker's product prices less competitive compared to its principal competitors.
Foreign exchange fluctuations negatively impacted Bruker's non-GAAP gross margin in Q4 2023 and are expected to continue affecting its performance in the first quarter of 2024, leading to a softer operating margin forecast.
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 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 2024 earnings per share (EPS) has remained constant at $2.74 in the past 30 days.
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $3.27 billion. This suggests a 10.3% rise from the year-ago reported number.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Inspire Medical System (INSP - Free Report) , HCA Healthcare (HCA - Free Report) and DexCom (DXCM - Free Report) .
Inspire Medical System has an estimated 2024 earnings growth rate of 51.4% compared with the industry’s 20.3%. INSP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 353.55%. Its shares have decreased 7% compared with the industry’s 19.7% fall in the past year.
HCA Healthcare, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.1% compared to the industry’s 9.9%. Shares of the company have increased 9.7% compared with the industry’s 7.8% rise over the past year.
HCA’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 5.64%. In the last reported quarter, it delivered an average earnings surprise of 6.99%.
DexCom, sporting a Zacks Rank #1 at present, has an estimated long-term earnings growth rate of 33.1% compared with the industry’s 14.8%. Shares of DXCM have increased 6.2% compared with the industry’s 2.1% rise over the past year.
DXCM’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 34.10%. In the last reported quarter, it delivered an average earnings surprise of 18.52%.
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Here's Why You Should Buy Bruker (BRKR) Stock Right Now
Bruker Corporation (BRKR - Free Report) is likely to grow in the coming quarters, backed by the strong potential of the Bruker Scientific Instruments (“BSI”) Nano Group. In BioSpin, strength across end markets, including the new IDS (integrated data solutions) business, sounds encouraging for the company. The CALID Group has also been making decent progress lately, primarily due to the strong demand for differentiated instruments.
Meanwhile, exposure to currency fluctuations, as well as competitive challenges, can potentially hinder the company’s operational results.
In the past year, this Zacks Rank #2 (Buy) stock has increased 3.4% against the 12.9% fall of the industry and a 23.5% rise of the S&P 500 composite.
The renowned medical device company has a market capitalization of $11.77 billion. Bruker projects a long-term estimated earnings growth rate of 14.4% compared with 11.8% of the industry. BRKR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 11.4%.
Let’s delve deeper.
Upsides
BSI Nano Group’s Prospects Bright: Over the past few quarters, NANO’s microelectronics and semiconmetrology tools boomed with solid bookings and a strong backlog. As a group, revenues continue to be driven by the strength of end markets, including academic, government and industrial. The artificial intelligence megatrend is a key factor driving the success of semiconductor metrology and advanced packaging tools.
Bruker NANO Life Science fluorescence microscopy is gaining from product innovation and research demand and also includes a strong contribution from the 2022 acquisition of Inscopix neuroscience research tools. In the fourth quarter of 2023, the company introduced the Hysitron TI 990 TriboIndenter, featuring enhancements such as new measurement modes, 2X faster testing throughput and a larger 200mm x 300mm testing area.
The addition of PhenomeX has expanded Bruker’s footprint in translational research, clinical research and biopharma and also helps its Project Accelerate 2.0 initiative. The company is currently working on rightsizing the business and optimizing cost structures.
Image Source: Zacks Investment Research
Strong Prospects for BioSpin: Bruker BioSpin’s products have specific applications in structural proteomics, drug discovery, research and food and materials science fields. In 2023, the segment registered growth across the biopharma, academic, government, industrial research and applied markets and the new IDS division.
The company's innovations have supported advanced life and materials science research infrastructure in the UK, contributing to scientific advancement, drug discovery and a green-tech economy. Bruker received two orders for 1.2 gigahertz NMRs, which will be placed at the University of Warwick and the University of Birmingham institutions, with both institutions already having Bruker 1.0 GHz NMR spectrometer. In the fourth quarter of 2023, BRKR installed the first 1.2 gigahertz NMR in the United States at Ohio State University and the 1.1 gigahertz NMR at the University of Wisconsin at Madison.
CALID Group Holds Potential: Bruker’s CALID Group is benefiting from the 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 2023, the segment delivered strong high-teens percentage organic growth. The company launched timsTOF Ultra, which provides market-leading sensitivity and throughput with expanded peptide coverage and more accurate quantitation in unbiased 4D single-cell cell lines and tissue proteomics. More enhancements were announced for timsTOF methods, consumables and software for the next-generation unbiased high-fidelity 4D proteomics and 4D multiomics.
In addition, Bruker became a majority investor in the Swiss start-up company MIRO Analytical AG, complementing the gas-analysis spectroscopy portfolio in the company’s Optics division with fast, compact, highest-precision QCL (Quantum Cascade Laser) multi-trace gas analyzers.
Downsides
Exposed to Currency Movement: Bruker generates a substantial portion of its revenues in the international markets, primarily in Germany and other countries in the European Union, Switzerland and Japan. This exposes the company to foreign currency transaction losses due to currency fluctuations. Moreover, such fluctuations could also make Bruker's product prices less competitive compared to its principal competitors.
Foreign exchange fluctuations negatively impacted Bruker's non-GAAP gross margin in Q4 2023 and are expected to continue affecting its performance in the first quarter of 2024, leading to a softer operating margin forecast.
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 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 2024 earnings per share (EPS) has remained constant at $2.74 in the past 30 days.
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $3.27 billion. This suggests a 10.3% rise from the year-ago reported number.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Inspire Medical System (INSP - Free Report) , HCA Healthcare (HCA - Free Report) and DexCom (DXCM - Free Report) .
Inspire Medical System has an estimated 2024 earnings growth rate of 51.4% compared with the industry’s 20.3%. INSP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 353.55%. Its shares have decreased 7% compared with the industry’s 19.7% fall in the past year.
INSP sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
HCA Healthcare, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.1% compared to the industry’s 9.9%. Shares of the company have increased 9.7% compared with the industry’s 7.8% rise over the past year.
HCA’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 5.64%. In the last reported quarter, it delivered an average earnings surprise of 6.99%.
DexCom, sporting a Zacks Rank #1 at present, has an estimated long-term earnings growth rate of 33.1% compared with the industry’s 14.8%. Shares of DXCM have increased 6.2% compared with the industry’s 2.1% rise over the past year.
DXCM’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 34.10%. In the last reported quarter, it delivered an average earnings surprise of 18.52%.