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Brainsway Ltd. Sponsored ADR (BWAY) Hit a 52 Week High, Can the Run Continue?
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A strong stock as of late has been Brainsway Ltd. Sponsored ADR (BWAY - Free Report) . Shares have been marching higher, with the stock up 22.8% over the past month. The stock hit a new 52-week high of $14.86 in the previous session. Brainsway has gained 57.5% since the start of the year compared to the -3.3% move for the Zacks Medical sector and the 5.5% return for the Zacks Medical - Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 13, 2025, Brainsway reported EPS of $0.1 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 1.95%.
For the current fiscal year, Brainsway is expected to post earnings of $0.34 per share on $50.88 in revenues. This represents a 88.89% change in EPS on a 24.04% change in revenues. For the next fiscal year, the company is expected to earn $0.53 per share on $62.15 in revenues. This represents a year-over-year change of 55.88% and 22.16%, respectively.
Valuation Metrics
Though Brainsway has recently hit a 52-week high, what is next for Brainsway? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Brainsway has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 43.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.2X. On a trailing cash flow basis, the stock currently trades at 59.6X versus its peer group's average of 11.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Brainsway currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Brainsway meets the list of requirements. Thus, it seems as though Brainsway shares could have potential in the weeks and months to come.
How Does BWAY Stack Up to the Competition?
Shares of BWAY have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is VAREX IMAGING (VREX - Free Report) . VREX has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. VAREX IMAGING beat our consensus estimate by 350.00%, and for the current fiscal year, VREX is expected to post earnings of $0.97 per share on revenue of $823.33 million.
Shares of VAREX IMAGING have gained 49% over the past month, and currently trade at a forward P/E of 16.46X and a P/CF of 8.03X.
The Medical - Products industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BWAY and VREX, even beyond their own solid fundamental situation.
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Brainsway Ltd. Sponsored ADR (BWAY) Hit a 52 Week High, Can the Run Continue?
A strong stock as of late has been Brainsway Ltd. Sponsored ADR (BWAY - Free Report) . Shares have been marching higher, with the stock up 22.8% over the past month. The stock hit a new 52-week high of $14.86 in the previous session. Brainsway has gained 57.5% since the start of the year compared to the -3.3% move for the Zacks Medical sector and the 5.5% return for the Zacks Medical - Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 13, 2025, Brainsway reported EPS of $0.1 versus consensus estimate of $0.07 while it beat the consensus revenue estimate by 1.95%.
For the current fiscal year, Brainsway is expected to post earnings of $0.34 per share on $50.88 in revenues. This represents a 88.89% change in EPS on a 24.04% change in revenues. For the next fiscal year, the company is expected to earn $0.53 per share on $62.15 in revenues. This represents a year-over-year change of 55.88% and 22.16%, respectively.
Valuation Metrics
Though Brainsway has recently hit a 52-week high, what is next for Brainsway? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Brainsway has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 43.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 18.2X. On a trailing cash flow basis, the stock currently trades at 59.6X versus its peer group's average of 11.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Brainsway currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Brainsway meets the list of requirements. Thus, it seems as though Brainsway shares could have potential in the weeks and months to come.
How Does BWAY Stack Up to the Competition?
Shares of BWAY have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is VAREX IMAGING (VREX - Free Report) . VREX has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. VAREX IMAGING beat our consensus estimate by 350.00%, and for the current fiscal year, VREX is expected to post earnings of $0.97 per share on revenue of $823.33 million.
Shares of VAREX IMAGING have gained 49% over the past month, and currently trade at a forward P/E of 16.46X and a P/CF of 8.03X.
The Medical - Products industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BWAY and VREX, even beyond their own solid fundamental situation.