Zacks Equity Research has highlighted Brainsway Ltd. Sponsored ADR (NASDAQ: BWAY) as its Bull of the Day and Lululemon athletica (NASDAQ: LULU) as its Bear of the Day for July 24, 2026.
Brainsway is a medical device company treating mental health disorders ranging from major depressive disorder and OCD to substance abuse and cigarette addiction using its proprietary Deep Transcranial Magnetic Stimulation platform.
The company’s patented H-coil reaches deeper brain structures than conventional TMS systems, forming the basis of its intellectual property position against rival Neuronetics.
Three bullish catalysts are converging for Brainsway: FDA clearance of Deep TMS as adjunct therapy for adolescent MDD, one-year durability data for the SWIFT accelerated protocol, and insurance coverage expanding past 57 million people.
In its most recent quarter, Brainsway posted revenue of $15.5 million, a 35% increase, while net income more than doubled to $2.3 million and adjusted EBITDA surged 117%.
The company shipped a record 117 Deep TMS systems in the quarter, up 44%, bringing the total installed base to approximately 1,820 units generating recurring usage-based revenue.
Sales are expected to grow 31.2% this year and 22.9% next year, while next year’s earnings are projected to climb more than 63%, supporting the stock’s Zacks Rank #1 (Strong Buy) designation.
Shares of BWAY are up more than 60% year to date, consolidating near their highs in a pattern that technical analysts often associate with a momentum continuation setup.
Lululemon, by contrast, has been assigned a Zacks Rank #5 (Strong Sell) as falling earnings estimates and weakening North American demand continue to weigh on the business.
In its most recent quarter, Lululemon reported revenue of $2.5 billion, a 4% increase, but comparable sales fell 2% overall and dropped 6% in the core North America market.
Gross margin contracted 410 basis points due to tariffs and fixed-cost deleverage, with second-quarter operating margin now guided to roughly 11.6% versus 20.7% a year ago.
Management cut full-year EPS guidance by more than a dollar to a range of $10.95 to $11.15, citing negative brand commentary on social channels and product launches that failed to resonate with consumers.
Current quarter earnings estimates for Lululemon have been slashed 34.4%, current year estimates are down 10.8%, and next year estimates have been cut more than 13%.
Current year revenue for Lululemon is projected to fall 0.2%, with earnings expected to drop 17.5% before only a tepid 5.5% rebound next year.
Separately, Zacks also analyzed Tesla (NASDAQ: TSLA) and Space Exploration Technologies Corp. (SPCX) following comments made by Elon Musk on Tesla’s second-quarter 2026 earnings call regarding the possibility of a merger between the two companies.
When asked about the strategic rationale for combining Tesla and SpaceX, Musk said, “As you can tell from the many collaborations on so many fronts with SpaceX, there’s more and more overlap.”
Musk added that any discussions about combining companies would need to follow the “appropriate process,” stopping short of confirming any merger while also declining to rule one out.
Earlier this year, Tesla deepened its financial ties with SpaceX through an investment and a framework agreement, and the company recorded a $1 billion mark-to-market gain on its SpaceX investment in the second quarter.
The two companies are jointly developing Terafab, a large-scale semiconductor manufacturing project Musk described as critical to Tesla’s future, producing AI chips needed to scale the Optimus humanoid robot program.
SpaceX’s Starlink satellite internet service is also being integrated into Tesla’s Cybercab and eventually into all Tesla vehicles in markets where Starlink is available, with Musk citing coverage gaps in cellular networks as the key driver.
Both Tesla and SpaceX currently carry a Zacks Rank #3 (Hold), while Brainsway’s strong fundamental trajectory and expanding reimbursement keep it firmly in bull territory heading into the second half of 2026.
