Brainsway Ltd. Sponsored ADR (BWAY) Moves 10.6% Higher: Will This Strength Last?

Brainsway Ltd. Sponsored ADR (BWAY) shares ended the last trading session 10.6% higher at $10.69. 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 16.8% gain over the past four weeks.

Brainsway Ltd. witnessed solid price appreciation driven by optimism stemming from its announcement of first of its kind positive coverage policy by Centene Corporation for the treatment of obsessive-compulsive disorder (OCD) utilizing Deep Transcranial Magnetic Stimulation (TMS). Market is also optimistic about the company’s recent decision to distribute its first 10 Deep TMS devices for smoking addiction to practices throughout the United States.


Price and Consensus

Price Consensus Chart for BWAY

This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -66.7%. Revenues are expected to be $6.17 million, up 27.9% 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 Ltd. Sponsored ADR, 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 3 (Hold). You can see

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