We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Accuray (ARAY) Hits 52-Week High: What's Aiding the Stock?
Read MoreHide Full Article
Shares of Accuray Incorporated (ARAY - Free Report) scaled a new 52-week high of $3.86 on May 23, before closing the session marginally lower at $3.68.
In the past year, this Zacks Rank #3 (Hold) stock has gained 82.2% compared with the 2.4% rise of the industry and the S&P 500 composite’s growth of 4.9%.
Accuray’s expected growth rate of 200% for fiscal 2024 compares with the industry’s growth projection of 24.4%. The company’s Price/Sales ratio of 0.8 compares favorably with the industry’s 3.9.
Accuray is witnessing an upward trend in its stock price, prompted by its solid product portfolio. The optimism led by solid third-quarter fiscal 2023 performance and strategic partnerships are expected to contribute further. However, concerns regarding stiff competition and overdependence on technologies persist.
Image Source: Zacks Investment Research
Let’s delve deeper.
Key Growth Drivers
Solid Product Portfolio: Accuray’s solid product portfolio raises investors’ optimism. On the first-quarter fiscal 2023 earnings call in November 2022, the company confirmed its launch of VitalHold, which resulted from its partnership with C-RAD, at the ASTRO show in San Antonio, TX.
On the same call, Accuray confirmed that it had also demonstrated its newest innovation, ARTemis, the online adaptive capability in partnership with RaySearch, at the ASTRO show.
Strategic Partnerships: Investors are optimistic about Accuray’s slew of partnerships over the past few months. On the third-quarter fiscal 2023 earnings call in April, Accuray’s management confirmed that the company’s partnership with GE Healthcare continues to advance on multiple commercial fronts.
On the second-quarter fiscal 2023 earnings call in February, the company confirmed that it had advanced key strategic partnerships, most recently with C-RAD, introducing the VitalHold breast package that will allow Accuray to offer the most comprehensive breast package in the market.
Strong Q3 Results: Accuray’s robust third-quarter fiscal 2023 results buoy optimism. The company recorded solid overall top-line and bottom-line performances in the quarter. Robust Product and Services revenues and geographical performances were also witnessed. Accuray also registered continued strong demand for its Clear RT and Synchrony on Radixact and the CyberKnife S7.
Downsides
Overdependence on Technologies: Achieving consumer and third-party payor acceptance of the CyberKnife and TomoTherapy platforms as preferred methods of tumor treatment is crucial to Accuray’s continued success. Physicians will not begin to use or increase the use of the CyberKnife or TomoTherapy platforms unless they determine, based on experience, clinical data and other factors, that the two platforms are safe and effective alternatives to traditional treatment methods.
Stiff Competition: The medical device industry and the non-invasive cancer treatment field, in particular, are subject to intense and increasing competition and rapidly evolving technologies. To compete successfully, Accuray will need to continue to demonstrate the advantages of its products and technologies over well-established alternative procedures, and other counterparts and convince physicians and other healthcare decision makers of the advantages of the same.
Key Picks
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 5.8% compared with the industry’s 2.4% rise in the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 20.2%.
Merit Medical has gained 36.5% compared with the industry’s 5.9% rise over the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.
Boston Scientific has gained 28.5% against the industry’s 31.4% decline over the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Accuray (ARAY) Hits 52-Week High: What's Aiding the Stock?
Shares of Accuray Incorporated (ARAY - Free Report) scaled a new 52-week high of $3.86 on May 23, before closing the session marginally lower at $3.68.
In the past year, this Zacks Rank #3 (Hold) stock has gained 82.2% compared with the 2.4% rise of the industry and the S&P 500 composite’s growth of 4.9%.
Accuray’s expected growth rate of 200% for fiscal 2024 compares with the industry’s growth projection of 24.4%. The company’s Price/Sales ratio of 0.8 compares favorably with the industry’s 3.9.
Accuray is witnessing an upward trend in its stock price, prompted by its solid product portfolio. The optimism led by solid third-quarter fiscal 2023 performance and strategic partnerships are expected to contribute further. However, concerns regarding stiff competition and overdependence on technologies persist.
Image Source: Zacks Investment Research
Let’s delve deeper.
Key Growth Drivers
Solid Product Portfolio: Accuray’s solid product portfolio raises investors’ optimism. On the first-quarter fiscal 2023 earnings call in November 2022, the company confirmed its launch of VitalHold, which resulted from its partnership with C-RAD, at the ASTRO show in San Antonio, TX.
On the same call, Accuray confirmed that it had also demonstrated its newest innovation, ARTemis, the online adaptive capability in partnership with RaySearch, at the ASTRO show.
Strategic Partnerships: Investors are optimistic about Accuray’s slew of partnerships over the past few months. On the third-quarter fiscal 2023 earnings call in April, Accuray’s management confirmed that the company’s partnership with GE Healthcare continues to advance on multiple commercial fronts.
On the second-quarter fiscal 2023 earnings call in February, the company confirmed that it had advanced key strategic partnerships, most recently with C-RAD, introducing the VitalHold breast package that will allow Accuray to offer the most comprehensive breast package in the market.
Strong Q3 Results: Accuray’s robust third-quarter fiscal 2023 results buoy optimism. The company recorded solid overall top-line and bottom-line performances in the quarter. Robust Product and Services revenues and geographical performances were also witnessed. Accuray also registered continued strong demand for its Clear RT and Synchrony on Radixact and the CyberKnife S7.
Downsides
Overdependence on Technologies: Achieving consumer and third-party payor acceptance of the CyberKnife and TomoTherapy platforms as preferred methods of tumor treatment is crucial to Accuray’s continued success. Physicians will not begin to use or increase the use of the CyberKnife or TomoTherapy platforms unless they determine, based on experience, clinical data and other factors, that the two platforms are safe and effective alternatives to traditional treatment methods.
Stiff Competition: The medical device industry and the non-invasive cancer treatment field, in particular, are subject to intense and increasing competition and rapidly evolving technologies. To compete successfully, Accuray will need to continue to demonstrate the advantages of its products and technologies over well-established alternative procedures, and other counterparts and convince physicians and other healthcare decision makers of the advantages of the same.
Key Picks
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 5.1% for fiscal 2024. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average being 27.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 5.8% compared with the industry’s 2.4% rise in the past year.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 20.2%.
Merit Medical has gained 36.5% compared with the industry’s 5.9% rise over the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.5%. BSX’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 1.9%.
Boston Scientific has gained 28.5% against the industry’s 31.4% decline over the past year.