For most investors, how much a stock’s price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you’d invested in Bruker (BRKR) ten years ago? It may not have been easy to hold on to BRKR for all that time, but if you did, how much would your investment be worth today?
Bruker’s Business In-Depth
With that in mind, let’s take a look at Bruker’s main business drivers.
Billerica, MA-headquartered Bruker Corporation designs and manufactures proprietary life science and materials research systems and associated products that serve multiple customers in life science research, pharmaceuticals, applied markets, nanotechnology, cell biology, clinical research, microbiology and in-vitro diagnostics. Currently, Bruker employs 6,000 individuals who work at 90 locations across the globe. It has direct sales forces employed through North America, Europe, Japan, Asia Pacific and Australia.
Business Segments:
Bruker Scientific Instruments (BSI) Life Science: Within the segment, Bruker reports under two groups: Bruker BioSpin Group (comprising 28.6% of revenues in 2021, up 15.2% from 2020) and Bruker CALID Group (33.9%, up 25.3%).
The Bruker BioSpin comprises the Bruker Magnetic Resonance and Preclinical Imaging divisions, which designs, manufactures and distributes enabling life science tools based on the magnetic resonance technology.
The Bruker CALID comprises the Bruker Daltonics and primarily designs, manufactures and distributes life-science mass spectrometry instruments that can be integrated with other sample preparation or chromatography instruments.
BSI Nano (28.8%, up 25.4%): The Bruker Nano combines the Bruker AXS, Bruker Nano Surfaces, Bruker Nano Analytics and Bruker Elemental divisions, and designs, manufactures and distributes advanced X-ray instruments to determine the characteristics of matter and the three-dimensional structure of molecules.
Bruker Energy & Supercon Technologies (BEST) (9%, up 18.1%): This segment designs, manufactures and distributes superconducting materials, primarily metallic low temperature superconductors, for use in magnetic resonance imaging, nuclear magnetic resonance, fusion energy research and other applications.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Bruker ten years ago, you’re probably feeling pretty good about your investment today.
A $1000 investment made in February 2012 would be worth $4,377.61, or a gain of 337.76%, as of February 28, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500’s rally of 221.05% and gold’s return of 7.47% over the same time frame.
Looking ahead, analysts are expecting more upside for BRKR.
Bruker ended the fourth quarter of 2021 with better-than-expected revenues. The top line was driven by robust revenue growth across all geographies as well as within the BSI and BEST businesses. CALID revenues benefitted from robust growth in life science mass spectrometry and the MALDI Biotyper franchise. Robust bookings and backlog growth in the fourth quarter buoy optimism. Bruker’s financial outlook for 2022 with solid growth projections over 2021 also instills investors’ confidence. However, the year-over-year decline in BioSpin Group revenues does not bode well. The rise in operating costs is concerning. The company is also facing supply chain and logistics delays, raising apprehension. Contraction of adjusted operating margin is another downside. Over the past year, Bruker has underperformed its industry.
Over the past four weeks, shares have rallied 10.03%, and there have been 4 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year’s 2021
Zacks Top 10 Stocks
portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
