Back to top

Image: Bigstock

Accuray: Hong Kong Sanatorium to Buy 3 Radixact Systems

Read MoreHide Full Article

Accuray Incorporated (ARAY - Free Report) has signed an agreement with Hong Kong Sanatorium & Hospital per which the latter would purchase three Radixact Systems. The aforementioned system provides clinicians access to the newest features of advanced radiation therapy to treat patients.

For the last six months, the stock witnessed a negative return of almost 7.41%, wider than the Zacks categorized Medical – Instruments sub-industry’s loss of roughly 2.97%. However, markets reacted positively to the aforementioned news and the stock gained almost 3.26% to close at $4.75 on Wednesday.

Also, Accuray’s long-term growth fundamentals are compelling. The company recorded a three-year CAGR of 7.43% for revenues and 15.00% for adjusted earnings per share. Meanwhile, the estimate revision trend holds some promise, with two estimates moving north over the past two months and no movement in the opposite direction. Notably, the current year estimates for the stock improved by 2 cents to a loss of 15 cents over the same timeframe.


Of the three Radixact Systems to be bought by Hong Kong Sanatorium & Hospital, two will replace the existing TomoTherapy Systems and one will be installed in a new bunker. The agreement also includes an upgrade to the hospital's existing CyberKnife M6 System to include the latest features for motion management and treatment efficiency.

Going forward, we are bullish on Accuray owing to the strong presence of its flagship products CyberKnife and TomoTherapy systems in the radio-therapy market. As per data available from Markets & Markets, the radio-therapy market is estimated to reach $7.54 billion by 2020, which presents a considerable growth opportunity for Accuray. We believe the addition of Radixact in Hong Kong will aid the company in penetrating this fast growing Asian market.

Zacks Rank & Key Picks

Currently, Accuray has a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and IDEXX Laboratories, Inc. (IDXX - Free Report) . Addus HomeCare and IDEXX Laboratories sport a Zacks Rank #1 (Strong Buy). Meanwhile, LHC Group carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 50%.

LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 17.6% in the last three months.

IDEXX Laboratories has an expected earnings growth of almost 15%. The company posted a promising year-to-date return of almost 64%.

The Best Place to Start Your Stock Search

Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Accuray Incorporated (ARAY) - free report >>

IDEXX Laboratories, Inc. (IDXX) - free report >>

Addus HomeCare Corporation (ADUS) - free report >>

Published in