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Brainsway (BWAY) Soars 14.5%: Is Further Upside Left in the Stock?

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Brainsway Ltd. Sponsored ADR (BWAY - Free Report) shares ended the last trading session 14.5% higher at $9.24. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2% gain over the past four weeks.

Shares of the company surgd following its securities purchase agreement with an affiliate of Valor Equity Partners for a private investment financing expected to result in gross proceeds of approximately US$20 million.The deal represents a purchase price of $9.51 per share.

This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +300%. Revenues are expected to be $9.9 million, up 19.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Brainsway, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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 #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Brainsway belongs to the Zacks Medical - Products industry. Another stock from the same industry, Quanterix Corporation (QTRX - Free Report) , closed the last trading session 1.8% higher at $12.96. Over the past month, QTRX has returned -2.3%.

For Quanterix, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.20. This represents a change of +4.8% from what the company reported a year ago. Quanterix currently has a Zacks Rank of #3 (Hold).


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