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Brainsway Ltd. Sponsored ADR (BWAY) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Brainsway Ltd. Sponsored ADR (BWAY - Free Report) ? Shares have been on the move with the stock up 30.3% over the past month. The stock hit a new 52-week high of $9.7 in the previous session. Brainsway Ltd. Sponsored ADR has gained 48.2% since the start of the year compared to the 7.2% move for the Zacks Medical sector and the 12.1% return for the Zacks Medical - Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 6, 2024, Brainsway reported EPS of $0.04 versus consensus estimate of $0 while it beat the consensus revenue estimate by 6.44%.
For the current fiscal year, Brainsway is expected to post earnings of $0.06 per share on $39.46 million in revenues. This represents a 123.08% change in EPS on a 24.16% change in revenues. For the next fiscal year, the company is expected to earn $0.12 per share on $45.32 million in revenues. This represents a year-over-year change of 100% and 14.85%, respectively.
Valuation Metrics
Brainsway may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. 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 D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 153.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 12.1X. 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 #1 (Strong Buy) thanks to rising earnings estimates.
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 Phibro Animal Health Corporation (PAHC - Free Report) . PAHC has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Phibro Animal Health Corporation beat our consensus estimate by 20.59%, and for the current fiscal year, PAHC is expected to post earnings of $1.44 per share on revenue of $1.19 billion.
Shares of Phibro Animal Health Corporation have gained 8.8% over the past month, and currently trade at a forward P/E of 14.73X and a P/CF of 10X.
The Medical - Products industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BWAY and PAHC, even beyond their own solid fundamental situation.
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Brainsway Ltd. Sponsored ADR (BWAY) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Brainsway Ltd. Sponsored ADR (BWAY - Free Report) ? Shares have been on the move with the stock up 30.3% over the past month. The stock hit a new 52-week high of $9.7 in the previous session. Brainsway Ltd. Sponsored ADR has gained 48.2% since the start of the year compared to the 7.2% move for the Zacks Medical sector and the 12.1% return for the Zacks Medical - Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 6, 2024, Brainsway reported EPS of $0.04 versus consensus estimate of $0 while it beat the consensus revenue estimate by 6.44%.
For the current fiscal year, Brainsway is expected to post earnings of $0.06 per share on $39.46 million in revenues. This represents a 123.08% change in EPS on a 24.16% change in revenues. For the next fiscal year, the company is expected to earn $0.12 per share on $45.32 million in revenues. This represents a year-over-year change of 100% and 14.85%, respectively.
Valuation Metrics
Brainsway may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. 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 D. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 153.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.1X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 12.1X. 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 #1 (Strong Buy) thanks to rising earnings estimates.
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 Phibro Animal Health Corporation (PAHC - Free Report) . PAHC has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Phibro Animal Health Corporation beat our consensus estimate by 20.59%, and for the current fiscal year, PAHC is expected to post earnings of $1.44 per share on revenue of $1.19 billion.
Shares of Phibro Animal Health Corporation have gained 8.8% over the past month, and currently trade at a forward P/E of 14.73X and a P/CF of 10X.
The Medical - Products industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BWAY and PAHC, even beyond their own solid fundamental situation.