Core Viewpoint - Brookfield Business Partners L.P. (BBU) shows potential for upside based on analysts' price targets and earnings estimate revisions, with a mean price target of $29.46 indicating a 25% upside from the current price of $23.56 [1][12] Price Targets - The average price target for BBU is $29.46, with a range from $22.40 to $35, and a standard deviation of $5.39, indicating variability in analysts' estimates [2] - The lowest estimate suggests a decline of 4.9%, while the highest indicates a potential upside of 48.6% [2] Analyst Sentiment - Analysts show strong agreement on BBU's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][9] - The Zacks Consensus Estimate for the current year has increased by 20.3% over the past month, with two estimates rising and no negative revisions [10] Zacks Rank - BBU holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [11] Caution on Price Targets - While price targets are a common tool for investors, they should be approached with skepticism as they may not accurately predict stock price movements [5][8]

Core Viewpoint - Brookfield Business Partners L.P. (BBU) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Current-Quarter Estimate Revisions - For the current quarter, Brookfield Business Partners is expected to earn $1.26 per share, reflecting a decrease of 80.82% from the previous year [4]. - Over the last 30 days, the Zacks Consensus Estimate has increased by 21.26% due to two upward revisions and no negative changes [4]. Current-Year Estimate Revisions - For the full year, the expected earnings per share is $5.43, indicating a year-over-year decline of 16.33% [5]. - The consensus estimate for the current year has risen by 20.27% as two estimates have been revised upward with no negative revisions [5]. Favorable Zacks Rank - The positive estimate revisions have led to Brookfield Business Partners achieving a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance [6]. - Research indicates that stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500 [6]. Bottom Line - Brookfield Business Partners shares have increased by 5.2% over the past four weeks, suggesting investor confidence in the company's earnings growth prospects [7].

Group 1 - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks is challenging, as they may lose momentum if their valuations exceed future growth potential [1] - A safer investment strategy involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score [2] Group 2 - Brookfield Business Partners L.P. (BBU) is highlighted as a strong candidate for momentum investing, with a recent price increase of 1% over the past four weeks [3] - BBU has demonstrated significant momentum, gaining 21% over the past 12 weeks, and has a beta of 1.45, indicating it moves 45% more than the market [4] - The stock has a Momentum Score of A, suggesting it is an opportune time to invest in BBU to leverage its momentum [5] Group 3 - BBU has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors and drive prices higher [6] - The stock is currently trading at a low Price-to-Sales ratio of 0.04, meaning investors pay only 4 cents for each dollar of sales, indicating a favorable valuation [6] - BBU is positioned for continued growth, with potential for fast-paced returns [7] Group 4 - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in the identification of winning stock picks [8]

Financial Performance - Total assets as of September 30, 2024, amounted to $80.3 billion, with revenues of $33.2 billion for the nine months ended September 30, 2024[185]. - For the three months ended September 30, 2024, net income was $1,735 million, compared to $49 million for the same period in 2023, representing a significant increase[248]. - Revenues for the three months ended September 30, 2024, decreased by $5,167 million to $9,232 million, primarily due to the sale of the road fuels operation[250]. - Net income for the three months ended September 30, 2024, was $1,735 million, compared to a loss of $69 million in the Corporate and Other segment[320]. - Net income for the nine months ended September 30, 2024, was $2,003 million, compared to $293 million in the same period of 2023[321]. - Adjusted EBITDA for the three months ended September 30, 2024, was $844 million, an increase of $189 million from $655 million in the same period of 2023[297]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $1,912 million, with Business Services contributing $615 million and Infrastructure Services contributing $446 million[321]. Revenue Segmentation - The business services segment generated revenues of $19.7 billion, while the infrastructure services segment contributed $2.8 billion, and the industrials segment accounted for $10.8 billion[186]. - The partnership operates through four segments: business services, infrastructure services, industrials, and corporate and other[181]. - The partnership's revenues are primarily derived from insurance revenues and net investment income from its residential mortgage insurer[190]. - The advanced energy storage operation contributed $443 million to Adjusted EBITDA for Q3 2024, compared to $150 million in Q3 2023[313]. Geographic Revenue Distribution - The United States represented $6.2 billion in revenues, followed by Europe at $5.0 billion and Australia at $4.2 billion for the nine months ended September 30, 2024[186]. Operational Highlights - The dealer software and technology services operation provides cloud-based software solutions, generating revenues through subscription-based services tailored for automotive retailers[192]. - The healthcare services operation in Australia operates 38 hospitals, primarily generating revenue from private health insurance funds and government-related bodies[194][195]. - The construction operation recognizes revenues based on the stage of completion, with significant exposure to economic conditions in Australia and the UK[196][197]. - The fleet management and car rental services maintain a fleet of over 116,000 vehicles, sustaining high contract renewal rates with corporate clients in Brazil[198]. - The Indian non-bank financial services operation serves over 163,000 customers with a distribution network of more than 567 branches[199]. Acquisitions and Dispositions - The partnership completed the sale of its road fuels operation for total consideration of $250 million, resulting in a pre-tax net gain of $483 million[233]. - On September 17, 2024, the partnership acquired Network, a leading payment processor in the Middle East and Africa, for $2.7 billion, with an equity share of approximately $156 million[234]. - The offshore oil services operation agreed to sell its shuttle tanker segment for approximately $1.9 billion, with expected proceeds of about $265 million after debt repayment[236]. Financial Condition and Risks - The partnership's financial condition and results of operations are subject to various risks, including economic conditions, competition, and regulatory changes[174]. - The cybersecurity incident in June 2024 caused disruptions but is not expected to materially impact the financial condition of the partnership[193]. Tax and Regulatory Matters - Current income tax expense for Q3 2024 increased by $65 million to $276 million, primarily due to a tax settlement in the advanced energy storage operation[262]. - Deferred income tax recovery for Q3 2024 increased by $286 million to $580 million, attributed to the recognition of IRA Credits[262]. - The global minimum top-up tax, effective January 1, 2024, is not anticipated to have a material impact on the financial position of the partnership[365]. Assets and Liabilities - Total liabilities decreased by $2,958 million to $60,895 million as of September 30, 2024, compared to $63,853 million as of December 31, 2023[266]. - Financial assets increased by $208 million to $13,384 million as of September 30, 2024, driven by higher mortgage and loans receivable[267]. - Accounts receivable decreased by $83 million to $6,480 million as of September 30, 2024, mainly due to the disposition of the road fuels operation[269]. - Inventory and other assets decreased by $606 million to $4,715 million as of September 30, 2024, primarily due to the disposition of the road fuels operation[270]. Cash Flow and Capital Expenditures - Cash flows provided by operating activities for the nine months ended September 30, 2024, were $2,333 million, an increase from $1,704 million for the same period in 2023[350]. - Total cash flow used in investing activities was $1,975 million for the nine months ended September 30, 2024, compared to $883 million for the same period in 2023, driven by capital expenditures[352]. - Capital expenditures for the nine months ended September 30, 2024, included $633 million in maintenance and $1,418 million in growth capital expenditures, compared to $498 million and $1,894 million in the same period of 2023[273]. Equity and Debt - The weighted average interest rate on outstanding debt was 7.6% as of September 30, 2024, with approximately 75% of non-recourse borrowings being fixed or hedged[339]. - The partnership has a revolving acquisition credit facility with Brookfield allowing borrowings of up to $1 billion, which remains undrawn as of September 30, 2024[342]. - The partnership's total capacity on bilateral credit facilities is $2.35 billion, with $365 million available as of September 30, 2024[341]. Segment Performance - Adjusted EFO in the business services segment for Q3 2024 was $245 million, an increase of 99% from $123 million in Q3 2023[300]. - Adjusted EFO in the infrastructure services segment for Q3 2024 was $61 million, a decrease of 42% from $106 million in Q3 2023[305]. - Adjusted EFO in the industrials segment for Q3 2024 was $356 million, an increase of 134% from $152 million in Q3 2023[311]. - Adjusted EFO in the corporate and other segment for Q3 2024 was $(80) million, an improvement from $(93) million in Q3 2023[315].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2024 increased to $844 million from $655 million in the prior year, benefiting from $296 million in production credits under the U.S. Inflation Reduction Act [7][26] - Adjusted EFO for the quarter was $582 million, including $131 million of net gains primarily related to the disposition of the road fuel operation [29] Business Line Data and Key Metrics Changes - The Industrial segment generated $500 million of adjusted EBITDA, supported by Brazilian water and wastewater services and advanced energy operations [30] - The Business Services segment generated $228 million of adjusted EBITDA, with strong performance from the residential mortgage insurer [31] - The Infrastructure Services segment generated $146 million of adjusted EBITDA, down from $228 million the previous year, impacted by the sale of Nuclear Technology Services [33] Market Data and Key Metrics Changes - The acquisition of Network International, a leading digital payment services provider in the Middle East, is expected to create a market-leading digital payments business [8][16] - The health care services operation in Australia is facing challenges due to an unsustainable cost structure from wage inflation [28] Company Strategy and Development Direction - The company is focused on capital recycling, generating over $350 million from distributions and monetizations, including the sale of a significant portion of Altera [9][10] - The integration of Network International with Magnati aims to create a champion in the high-growth payment solution space [19][20] - The company plans to continue investing in strategic acquisitions and reinvesting in existing operations to generate incremental returns [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sustainability of benefits from the Inflation Reduction Act, expecting similar annual benefits for Clarios [37] - The company is encouraged by the improving monetization environment, with increased interest in M&A activity and strategic buyers [45][48] - Management noted that while there is softness in select markets, overall business performance remains stable [27] Other Important Information - The company has invested about $9 billion alongside Brookfield's private equity business to acquire high-quality, mission-critical businesses [10] - The company has realized over $6 billion from the sale of 20 businesses, achieving a 3 times multiple of capital and an IRR of approximately 30% [11] Q&A Session Summary Question: Sustainability of Inflation Reduction Act benefits - Management expects annual benefits for Clarios to remain similar based on finalized regulations [37] Question: Current IPO environment and dual listing considerations for Clarios - Management is keeping all options open for Clarios and is encouraged by ongoing conversations [38] Question: Details on the Altera sale and remaining debt - The shuttle tanker business represents about half of Altera's EBITDA, with net debt at Altera around $550 million to $575 million [41] Question: Broader environment for monetization - The M&A environment is becoming more robust, with increased activity and interest in various sectors [45][46] Question: Headwinds faced by Scientific Games - There was softness in U.S. retail sales, but new contracts are expected to generate revenue in the coming years [50][54] Question: Transaction environment for BBU's strategy - The market is enabling for transaction activity, particularly for stable businesses generating sustainable cash flow [58][59]

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Is Brookfield Business Partners L.P. (BBU) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Brookfield Business Partners L.P. is one of 317 companies in the Business Services group. The Business Services group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed i ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase ...

Economic strength, rising demand for service activities and the influx of foreign talent resulting in lowering talent costs are supporting the Zacks Business - Services industry players to thrive in the market.Driven by these positives, investors interested in the industry should focus on stocks like SGS (SGSOY) , Brookfield Business Partners (BBU) and Willdan Group (WLDN) .About the Industry The Zacks Business-Services industry comprises companies that offer a range of services, including specialty rental, ...

Brookfield Business Partners L.P. (BBU) closed the last trading session at $20.34, gaining 3.5% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $28.29 indicates a 39.1% upside potential.The average comprises six short-term price targets ranging from a low of $22.40 to a high of $33, with a standard deviation of $4.52. While the lowest estimate indicates an increase of 10.1% from th ...

Core Viewpoint - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] Group 1: Momentum Investing Strategy - Investors often struggle to identify the right entry point for trending stocks, which can lead to losses if the stock's future growth does not justify its high valuation [1] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify potential candidates [2] Group 2: Brookfield Business Partners L.P. (BBU) - BBU has recently seen a price increase of 0.3% over the past four weeks, indicating growing investor interest [2] - The stock has gained 6.1% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [3] - BBU has a beta of 1.47, suggesting it moves 47% more than the market, indicating fast-paced momentum [3] Group 3: Earnings Estimates and Valuation - BBU has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [3] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [4] - BBU is trading at a Price-to-Sales ratio of 0.03, indicating it is undervalued at only 3 cents for each dollar of sales [4] Group 4: Additional Investment Opportunities - Besides BBU, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [5] - The Zacks Premium Screens offer various strategies to identify potential winning stocks based on different investing styles [5]