For Immediate Release
Chicago, IL – July 24, 2026 – Zacks Equity Research shares Brainsway BWAY as the Bull of the Day and Lululemon athletica LULU as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesla TSLA and SpaceX SPCX.
Here is a synopsis of all four stocks:
Bull of the Day:
Brainsway is a medical device company treating mental health disorders from major depressive disorder and OCD to substance abuse and cigarette addiction. Its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) platform uses a rapidly changing magnetic field to induce a small electrical current in cortical tissue. The patented H-coil reaches deeper brain structures than conventional TMS systems — the basis of the company's IP position against rival Neuronetics.
Treatment involves sitting in a chair in a healthcare office wearing a helmet for roughly 20 minutes. No hospitalization, no anesthesia, no systemic side effects. FDA cleared and supported by over 60 clinical studies.
Three bullish catalysts are converging for the company. The FDA cleared Deep TMS as adjunct therapy for adolescent MDD, opening a population where families are often reluctant to escalate drug treatment. One-year durability data for the SWIFT accelerated protocol addresses the payers' central objection to neurostimulation. And insurance coverage for accelerated Deep TMS has expanded past 57 million people.
That last item is the one that matters most. The historical constraint on TMS was throughput, not efficacy as conventional protocols demanded daily sessions for six weeks, straining adherence and clinic economics. Accelerated treatment now compress that arc dramatically. When payers cover them, every installed system serves materially more patients with no incremental capital equipment. Revenue compounds against a fixed asset base, and that is what's driving estimates higher and why the stock now boasts a Zacks Rank #1 (Strong Buy) rating.
Shares are up more than 60% year to date and have spent recent months building a momentum continuation pattern, consolidating near the highs.
With a rapidly growing business, an innovative product, expanding reimbursement, strong price momentum and rising earnings estimates, Brainsway stands out as a compelling opportunity today.
Brainsway Shares Get Upgraded
At a $660 million market cap, analyst coverage remains thin, but the analyst who does follow the name has made hefty upward revisions. Current quarter estimates have jumped 43%, current year estimates 10%, and next year 20%.
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%. Current year earnings are expected to dip 8.3%, but that is a function of investment in growth opportunities rather than any deterioration in the business.
The most recent quarter underscores the point. Revenue rose 35% to $15.5 million, net income more than doubled to $2.3 million, and adjusted EBITDA jumped 117%. The company shipped a record 117 Deep TMS systems, up 44%, bringing the installed base to roughly 1,820. Because these systems generate recurring revenue from usage rather than one-time hardware sales, each placement adds to a growing annuity.
Technical Setup in BWAY Stock
Brainsway has traded in a stair-step pattern all year, consolidating, breaking out, then consolidating again at a higher level. The current base is the largest of the year, and shares have spent recent weeks absorbing supply near the highs. With upward estimate revisions and expanding reimbursement behind it, the setup points toward a breakout to new highs as institutional money likely begins to get involved.
Should Investors Buy Shares in BWAY?
Brainsway offers an unusually compelling combination of rapid growth, improving profitability and expanding reimbursement. The company is placing systems at a record pace, building a larger recurring-revenue base and benefiting from accelerated treatment protocols that improve both patient access and clinic economics.
The stock is not without risk. Brainsway remains a relatively small medical device company, and continued upside depends on broader insurer adoption, physician uptake and successful execution as the installed base expands. Shares have also already rallied sharply this year, which could leave them vulnerable to volatility around earnings or reimbursement developments.
Still, the fundamental trajectory remains highly encouraging. With revenue growing above 30%, earnings estimates moving higher and shares consolidating near their highs, BWAY appears positioned for another leg higher and earns its place as today's Bull of the Day.
Bear of the Day:
Anyone who regularly follows my Bear of the Day reports will notice that apparel companies appear frequently. While certain brands enjoy periods of exceptional growth and market leadership, most eventually confront the industry's inherent challenges: rapidly shifting trends, evolving consumer preferences, intense competition, and difficult inventory management.
Lululemon athletica, once among the premier growth stories in apparel, has been unable to escape that cycle. Growth has decelerated sharply, competition in premium athleisure has intensified, and the stock has suffered accordingly. Falling earnings estimates have pushed LULU to a Zacks Rank #5 (Strong Sell).
Bulls will point to the valuation, and the stock does screen inexpensive after its decline. But a cheap multiple built on falling estimates is a moving target. Every downward revision quietly raises the forward P/E on the same share price, which is how a stock that looks like a bargain keeps getting cheaper. Valuation only becomes an argument once estimates stop falling.
The brand is not dead, and Lululemon products remain widely worn. But brand recognition alone does not support a multiple. Until growth reaccelerates and estimates stabilize, investors have little reason to step in.
LULU Downgrades Hit Shares
Analysts have near-unanimously slashed the profit outlook across every timeline. Current quarter earnings estimates have been cut 34.4%, while current year estimates are down 10.8% and next year more than 13%.
Sales growth is languishing as well, with current year revenue projected to fall 0.2% and next year expected to see only a modest 3.2% bump. Earnings are expected to drop 17.5% this year before a tepid 5.5% rebound next year.
The recent quarter highlights the major challenges facing the business. Revenue rose 4% to $2.5 billion, but comparable sales actually fell 2% and in the core North America market, comps dropped 6%. Gross margin contracted 410 basis points on tariffs and fixed-cost deleverage, with second quarter operating margin now guided to roughly 11.6% versus 20.7% a year ago. Management also cut full year EPS guidance by more than a dollar to $10.95–$11.15, blaming negative brand commentary on social channels and product launches that failed to land.
Should Investors Avoid LULU Stock?
Lululemon remains a valuable brand with a strong balance sheet and meaningful international growth potential. However, those strengths are currently being overwhelmed by weakening demand in North America, disappointing product execution and significant pressure on margins and earnings estimates.
The stock may look inexpensive relative to its history, but the valuation is difficult to trust while forecasts continue to fall. A durable recovery would likely require stabilization in comparable sales, better reception to new product launches and evidence that gross margins can begin rebuilding.
Until those signals emerge, there is little urgency to call a bottom. With earnings momentum firmly negative and management still resetting expectations, LULU appears vulnerable to further weakness and earns its place as today's Bear of the Day.
Additional content:
Did Tesla Finally Provide Clarity on Merger with SpaceX?
There has been much speculation on whether Elon Musk would eventually combine Tesla and SpaceX. The two companies share a founder, operate at the cutting edge of technology and have worked together across artificial intelligence, robotics and manufacturing.
On Tesla's second-quarter 2026 earnings call, when Musk was asked about a Tesla-SpaceX merger and whether it made strategic sense, he didn't dismiss the idea. Instead, he acknowledged that the two companies are becoming more closely intertwined.
Quoting him, "As you can tell from the many collaborations on so many fronts with SpaceX, there's more and more overlap." He added that discussions about combining companies could not take place on an earnings call and would need to follow the "appropriate process."
While the response stopped well short of confirming any merger plans, it also didn't rule out the possibility. Musk, in fact, chose to emphasize the growing operational relationship between the two companies.
The Growing Overlap Between Tesla & SpaceX
Tesla and SpaceX are no longer simply two companies run by the same CEO. Their relationship has evolved into a strategic partnership spanning artificial intelligence, semiconductor manufacturing, robotics and connectivity.
Earlier this year, Tesla deepened its ties with SpaceX through an investment and a framework agreement, allowing the companies to expand collaboration on projects such as Terafab and Digital Optimus. The closer relationship was also reflected in Tesla's second-quarter results, where the company recorded a $1 billion mark-to-market gain on its SpaceX investment.
Developed jointly by Tesla and SpaceX, Terafab is a large-scale semiconductor manufacturing project that Musk described as critical to Tesla's future. The facility will help produce the AI chips needed to scale Optimus, Tesla's humanoid robot. Without sufficient chip supply, the company's long-term robotics ambitions could face constraints.
The companies are also working together on Digital Optimus. SpaceX's larger AI model helps assign tasks to the robot, highlighting how the two companies are increasingly sharing expertise in AI and computing rather than operating as completely separate technology businesses.
The collaboration extends beyond AI and robotics. Musk revealed that SpaceX's Starlink satellite internet service will be integrated into Tesla's Cybercab and eventually into all Tesla vehicles in markets where Starlink is available. He said reliable connectivity is essential for autonomous ride-hailing because cellular networks still have coverage gaps, even in densely populated regions such as Silicon Valley. Starlink would also ensure robotaxis remain connected while also supporting high-bandwidth services such as video streaming and other in-car entertainment.
Why Investors Keep Asking the Question
The growing collaboration between Tesla and SpaceX explains why merger speculation continues. The two companies are becoming increasingly intertwined across technologies that are central to their long-term strategies.
The similarities also extend beyond collaboration. Much of both companies' valuations today is driven not by their traditional businesses—selling electric vehicles in Tesla's case or launching rockets in SpaceX's—but by investor expectations around artificial intelligence and future technologies. Tesla is betting on autonomy, robotics and AI-driven manufacturing, while SpaceX is expanding beyond space transportation into satellite communications and AI-enabled infrastructure. As those ambitions converge, it's easy to see why investors continue to debate whether the partnership could eventually evolve into something bigger.
Musk also has a history of bringing companies within his broader ecosystem together through acquisitions and strategic restructurings— from Tesla's acquisition of SolarCity in 2016 to xAI's purchase of X and, more recently, SpaceX's acquisition of xAI.
The Bottom Line
Tesla's latest earnings call didn't confirm that a merger with SpaceX is in the works. But it did provide the clearest indication yet that the relationship between the two companies is becoming deeper and more strategic. Rather than focusing solely on merger speculation, investors should keep a close watch on how quickly Terafab ramps, whether Starlink integration expands beyond Cybercab, and if Tesla deepens its financial ties with SpaceX.
Tesla and SpaceX carry a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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