Brainsway Ltd. Sponsored ADR (BWAY) shares soared 8% in the last trading session to close at $11.05. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.8% gain over the past four weeks.

The sharp upsurge in BWAY shares can be attributed to positive market sentiment surrounding the company’s impressive recent financial performance and promising growth prospects. With a 26% year-over-year growth in revenue in the third-quarter and sustained positive net income, investors are optimistic about BWAY’s ongoing expansion and robust business model. The company’s strong Q3 results, coupled with positive clinical trial outcomes for its Deep TMS therapy, have further bolstered investor confidence. Given these factors, investors expect continued growth in earnings and revenue, which is likely to reflect in upcoming results, driving the stock’s upward momentum.

This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $10.84 million, up 20% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Brainsway, the consensus EPS estimate for the quarter has been revised 250% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. 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 is a member of the Zacks Medical - Products industry. One other stock in the same industry, AtriCure (ATRC), finished the last trading session 3% higher at $39.63. ATRC has returned 26.1% over the past month.

For AtriCure , the consensus EPS estimate for the upcoming report has changed +1.1% over the past month to -$0.20. This represents a change of +4.8% from what the company reported a year ago. AtriCure currently has a Zacks Rank of #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Brainsway Ltd. Sponsored ADR (BWAY) : Free Stock Analysis Report

AtriCure, Inc. (ATRC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research