Strength Seen in Brainsway (BWAY): Can Its 5.3% Jump Turn into More Strength?

Brainsway Ltd. Sponsored ADR (BWAY) shares rallied 5.3% in the last trading session to close at $11.49. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.7% gain over the past four weeks.

The sharp upsurge in BWAY shares can be attributed to positive market sentiment surrounding the recent clinical trial results for BrainsWay’s accelerated Deep TMS therapy in treating Major Depressive Disorder (MDD). The multicenter, randomized study demonstrated statistically significant improvements in depression symptoms over a short treatment course, with a favorable safety profile and rapid onset of effect. These compelling results position BrainsWay’s technology as a leading non-invasive treatment option for MDD, boosting investor confidence in its clinical relevance and long-term market potential.

This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $12.39 million, up 23.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Brainsway, the consensus EPS estimate for the quarter has been revised 10% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on BWAY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Brainsway is part of the Zacks Medical - Products industry. Boston Scientific (BSX), another stock in the same industry, closed the last trading session 1.1% higher at $102.36. BSX has returned -3.1% in the past month.

Boston Scientific's consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $0.72. Compared to the company's year-ago EPS, this represents a change of +16.1%. Boston Scientific currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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