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Strength Seen in Brainsway Ltd. Sponsored ADR (BWAY): Can Its 7.3% Jump Turn into More Strength?

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Brainsway Ltd. Sponsored ADR (BWAY - Free Report) shares soared 7.3% in the last trading session to close at $8.88. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.5% loss over the past four weeks.

Brainsway Ltd. witnessed solid price appreciation driven by optimism stemming from its announcement of receipt of 501(k) clearance from the FDA with respect to the company’s Theta Burst three-minute protocol that uses proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) system for treating major depressive disorder (MDD). The approval of Theta Burst is an addition to the company’s available protocols, which highlights Brainsway Ltd.’s focus on expanding the utility of the Brainsway Deep TMS system.

Price and Consensus

Price Consensus Chart for BWAY

This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of +46.7%. Revenues are expected to be $5.8 million, up 39.4% 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 Ltd. Sponsored ADR, the consensus EPS estimate for the quarter has been revised 28.9% 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 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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