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4 Reasons Why You Should Buy Accuray (ARAY) Stock Right Now

Zacks Equity Research

Accuray Incorporated ARAY is currently one of the top-performing stocks in the MedTech space. Improvement in price performance and strong fundamentals reflects the stock’s bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

The company has performed impressively in the second quarter of fiscal 2018 and is likely to sustain the momentum in the upcoming period.

Why an Attractive Pick?

Share Price Appreciation

A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse over the last six months. Accuray’s shares have returned 37.8%, which compared favorably with the broader industry’s gain of 17.9%, over the same time frame.

 

 

Northward Estimate Revisions

Three estimates in the current year moved north in the last 60 days, versus no downward revisions, indicating analysts’ optimism in the company. During the same period, the Zacks Consensus Estimate narrowed down from a loss of 27 cents per share to a loss of 19 cents. The company carries a Zacks Rank #2 (Buy), which indicates robust fundamentals and expectations of outperformance in the near term.

Strong Growth Prospects

The  Zacks Consensus Estimate for earnings of 3 cents reflects year-over-year growth of 150%. Moreover, earnings are expected to register growth of 73.7% in 2019.

The Zacks Consensus Estimate for 2018 revenues of $399.72 million reflects year-over-year growth of 4.3%. Moreover, revenues are expected to witness 4.6% growth in 2019.

Developments

The start of fiscal 2018 has been positive for Accuray. One of the flagship devices of the company — Radixact — majorly contributed to revenues in the second quarter. Additionally, more than 25 Radixact units have been recognized since its launch.

The company has been riding on a suite of latest software upgradation, which drove growth in the second quarter of fiscal 2018. These upgrades include integrated data management system (IDMS) and Accuray Precision Treatment Planning Software. Within the system, the PRECISEART module, captures and identifies anatomical changes taking place within the patient during the course of treatment.

Further, geographical gains improved, courtesy of European and APAC regions. Contributions in order performance from the EMEA and Japan regions have also been strong.

Adding to the current achievements, Accuray recently announced an agreement with the Neuro Spinal Hospital (NSH) in Dubai, UAE. Per the agreement, Neuro Spinal Hospital will acquire the company’s proprietary medical systems consisting of one CyberKnife M6 System and one Radixact System.

Other Picks

Other top-ranked stocks in the broader medical sector are BIOVERATIV BIVV, Centene CNC and Molina Healthcare MOH. Each of these stocks carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

BIOVERATIV has a long-term expected earnings growth of 14%.

Centene has a long-term expected earnings growth of 14%.

Molina has a long-term expected earnings growth of 24.5%.

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