Brainsway (BWAY) Is a Great Choice for ‘Trend’ Investors, Here’s Why

Although “the trend is your friend” when it comes to short-term investing or trading, the timing of trend entries is a key determinant of success. And increasing the chances of success by ensuring the sustainability of a trend is not easy.

Often, the direction of a stock’s price movement reverses quickly after taking a position in it, resulting in a short-term capital loss for investors. So it’s important to make sure there are enough factors – such as strong fundamentals, positive earnings estimate revisions, etc. – in place. – which could maintain the momentum of the title.

Our “Recent Price Strength” screen, created on a unique short-term trading strategy, could be very useful in this regard. This predefined screen makes it very easy to shortlist stocks that have enough fundamental strength to maintain their recent uptrend. Additionally, the screen only conveys stocks that are trading at the upper end of their 52-week high-low range, which is generally an indicator of a bullish trend.

There are several actions that passed through the screen and Brainsway Ltd. Sponsored ADR (BWAY) is one of them. Here are the main reasons why this stock is a solid choice for “trend” investing.

A sharp rise in price over a 12-week period reflects investors’ continued willingness to pay more for a stock’s potential upside. BWAY performs quite well in this regard, gaining 20.1% over this period.

However, it is not enough to observe the price movement over approximately three months, as it does not reflect a trend reversal that could have occurred in a shorter period of time. It is important for a potential winner to maintain the price trend. A 1.5% price rise over the past four weeks ensures that the trend is still in place for this company’s stock.

Additionally, BWAY is currently trading at 92.9% of its 52-week high-low range, suggesting it could be on the verge of a breakthrough.

Looking at fundamentals, the stock currently carries a Zacks Rank #1 (Strong Buy), meaning it’s in the top 5% of more than 4,000 stocks we rank based on trends in earnings estimate revisions and EPS surprises – the key factors that impact a stock’s near-term price movements.

The Zacks Rank stock rating system, which uses four factors related to earnings estimates to rank stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive outside-audited track record, with Zacks #1 Rank stocks generating an average annual return of +25% since 1988. You can see the complete list of today’s #1 Rank (Strong Buy) stocks here >>>>

Another factor that confirms the company’s fundamental strength is its average broker recommendation of #1 (Strong Buy). This indicates that the brokerage community is very optimistic about the stock price movement in the near term.

So, BWAY’s price trend may not reverse anytime soon.

In addition to BWAY, several other stocks are currently passing through our “Recent Price Strength” screen. You can consider investing there and start searching for the newest stocks that meet these criteria.

This isn’t the only screen that could help you find your next winning stock pick. Depending on your personal investing style, you can choose from over 45 Zacks Premium Screens strategically created to beat the market.

Keep in mind, however, that the key to a successful stock picking strategy is ensuring that it has produced profitable results in the past. You can easily do this with the help of Zacks Research Assistant. In addition to allowing you to test the effectiveness of your strategy, the program includes some of our most effective stock selection strategies.

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This article was originally published on Zacks Investment Research (zacks.com).

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