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Here's Why You Should Add Bruker (BRKR) to Your Portfolio Now

Zacks Equity Research

Bruker Corporation BRKR is progressing well with acquisitions and collaborations. Robust performance by its Bruker NANO and BioSpin divisions has also propelled growth for the company.

In the past three months, the company’s shares have outperformed the industry. The stock has rallied 23.4% compared with the industry’s 17.3% rise.

This $8.16-billion developer of proprietary life science and materials research systems’ earnings growth rate is projected at 12.6% for the next five years. Also, the company has a trailing four-quarter positive earnings surprise of 9.1%, on average.

Let’s delve deeper into the factors working in favor of this Zacks Rank #2 (Buy) stock.

Strength in Bruker Nano Surfaces:  In the third quarter of 2019, the Bruker Nano Surfaces group — which includes Bruker’s atomic force microscopy products — witnessed a strong uptick on uptrend in the life science mass spectrometry solutions and microbiology. The upside was also driven by solid academic markets and strong industrial research demand for advanced X-ray and Nano Materials Analysis products. Apart from these, the company continued gaining from the previously-closed acquisitions of Anasys, JPK, RAVE and Alicona through the third quarter. These developments are expected to continue driving growth for the company.

 

Prospects in NMR Industry: Through the third quarter, the company registered single-digit growth at BioSpin. This included revenues from another 1.0 gigahertz NMR system in the quarter. BioSpin preclinical imaging system revenues recorded year-on-year improvement. Management expects revenues from its BioSpin Group to grow in the mid-single digits, on an organic basis, through the next fiscal year as well.

Growth in Preclinical Imaging Market:The company is investing vigorously in the pre-clinical imaging division to capture a larger share in this fast-growing market space.In this regard, the Bruker’s recent collaboration with Champalimaud Foundation to develop the world's first 18 Tesla 11 cm bore is likely to be strengthening the company’s presence in the PCI market. In July 2019, the company made an acquisition in support of its Project Accelerate-PMOD Technologies, a provider of research-use software for preclinical and molecular imaging applications, viz. PET/MR and PET/CT scanning.

Which Way Are Estimates Treading?

For the fourth quarter of 2019, the Zacks Consensus Estimate for earnings is pegged at 59 cents, which indicates a 9.3% rise from the year-ago quarter’s figure. The same for revenues is pegged at $574.5 million, calling for year-over-year growth of 3.8% from the prior-year quarter’s number.

The Zacks Consensus Estimate for 2019 earnings is pegged at $1.63, suggesting 16.4% year-over-year growth from the year-ago figure. The same for revenues is pegged at $2.05 billion.

Other Stocks Worth a Look

A few other top-ranked stocks from the broader medical space are Haemonetics Corporation HAE, West Pharmaceutical Services WST and Omnicell OMCL.While Haemonetics sports a Zacks Rank #1 (Strong Buy), the other two carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Haemonetics has a projected long-term earnings growth rate of 13.5%.

West Pharmaceutical Services has an expected long-term earnings growth rate of 14%.

Omnicell has a long-term earnings growth rate of 12.5%.

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