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

Zacks Equity Research

Bruker Corporation BRKR is well poised for growth on robust segmental performance within the Bruker Nano Surfaces group.

In the past year, shares of thisleading designer and manufacturer of proprietary life science and materials research systems have outperformed the industry and the S&P 500 index. The stock has gained 64.4% compared with the industry’s 26.9% rise and the S&P 500’s 7.8% increase.

The company has a market cap of $7.58 billion. It has an expected growth rate of 12.60% for the next five years.

Banking on solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors right now.

Strong Bruker Nano Surfaces:  Of late, the Bruker Nano Surfaces group — which includes Bruker’s atomic force microscopy product — has been registering strong constant-currency revenue growth. This can be attributed to solid academic markets and strong industrial research demand for advanced X-ray and Nano Materials Analysis products. Acquisitions of Anasys and JPK (completed in April and July 2018 respectively) and Alicona look strategic, contributing significantly to the segment’s top line. Notably, in April 2019, the company closed the acquisition of RAVE, a semiconductor mass repair business, which is expected to contribute to the top line in the remainder of 2019.

 

Bruker Corporation Price

 

Bruker Corporation Price

Bruker Corporation price | Bruker Corporation Quote

 

High MALDI Biotyper PotentialBruker is expanding its MALDI Biotyper workflow’s menu to include selected high-value resistance testing for clinical microbiology research. In late 2018, the company acquired 80% stake in Hain Diagnostics. According to the company, the Hain portfolio is highly complementary to Bruker's market-leading MALDI Biotyper solution. It is also encouraging to note that demand for the MALDI Biotyper is increasing in applied markets, specifically for food, feed and beverage.

Growth in Preclinical Imaging Market:  This division of the company is experiencing increasing customer demand for higher-strength pre-clinical magnetic resonance imaging (MRI) system. In this regard, the company’s recent collaboration with Champalimaud Foundation to develop the world's first 18 Tesla 11 cm bore, preclinical ultra-high field MRI system, seems strategic.

Which Way Are Estimates Heading?

For the second quarter of 2019, the Zacks Consensus Estimate for earnings is pegged at 31 cents, indicating 24% growth from the year-ago quarter. The same for revenues is pegged at $477.3 million, calling for a year-over-year decline of 7.6% from the prior-year quarter.

For 2019, the Zacks Consensus Estimate for earnings is at $1.62, suggesting 15.7% year-over-year growth from the year-earlier figure. The same for revenues is pegged at $2.04 billion, indicating 7.5% rise from the prior-year quarter.

Other Key Picks

A few other top-ranked stocks in the broader medical space are Masimo Corporation MASI, Penumbra PEN and The Cooper Companies COO. Each of these stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Masimo’s long-term earnings growth rate is expected to be 16.1%.

Penumbra’s long-term earnings growth rate is projected at 21.5%.

Cooper Companies’ long-term earnings growth rate is estimated at 10.8%.

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