Accuray Incorporated ARAY recently announced that its Radixact SynC System and CyberKnife S7 System have been approved by the Chinese National Medical Products Administration. These approvals are likely to enable medical care teams to provide patients in China with the most advanced Accuray radiation therapy solutions.

The CyberKnife S7 System is the latest generation CyberKnife platform, and the introduction of the Radixact SynC System marks the first approval in the country for the ClearRT kVCT imaging and Synchrony real-time adaptive delivery technology on the Radixact System.

(Read more: Here's Why You Should Add Accuray Stock to Your Portfolio Now)

Likely Trend of ARAY Stock Following the News

Following the announcement, shares of the company moved north 4.7% to $2.24 yesterday. In the past six months, ARAY’s shares have gained 16.6% compared with the industry’s growth of 0.6%. The S&P 500 has gained 3.8% in the same time frame.

Accuray's approval to sell its advanced radiation therapy systems, Radixact SynC and CyberKnife S7, in China is a big win for the company. China has a massive and growing need for cancer treatment solutions, and these systems offer cutting-edge technology that can treat tumors with high precision and less impact on healthy tissue.

With estimates showing a need for around 2,000 systems in China over the next five years, Accuray has a huge opportunity to increase its sales and strengthen its reputation in a key market. This could lead to steady revenue growth and boost its stock price in the long term.

ARAY currently has a market capitalization of $215.2 million. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $468.6 million, indicating a 4.9% from the reported figure for fiscal 2024.

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More on ARAY’s Radixact SynC & CyberKnifeS7 Systems

The Radixact SynC System uses a helical design to deliver precise radiation from 360-degree rotations around the patient, ensuring the radiation conforms to the tumor while minimizing exposure to healthy tissue. This system is the only one in China that combines helical delivery with Synchrony real-time target tracking technology. Synchrony adapts the radiation beam in real-time to account for tumor movement caused by bodily processes or patient movement, making treatments more accurate.

The system also includes ClearRT, a kVCT fan-beam imaging solution that provides high-quality CT images quickly and cost-effectively. These images help clinicians confidently set up and track the patient, ensuring that the radiation is delivered accurately. ClearRT is especially important for treating tumors confined to organs, locally advanced tumors, and metastatic tumors.

On the other hand, the CyberKnife S7 System is a robotic, non-invasive radiosurgery device that delivers highly precise radiation treatments for both cancerous and benign tumors. With sub-millimetric accuracy, it can treat patients in as little as 15 minutes, helping medical teams deliver fast and effective treatments to more patients each day.

This system also enables ultra-hypofractionated radiation therapy, meaning patients receive higher doses of radiation in just one to five outpatient sessions compared with the 30-40 sessions required with traditional methods. This speed and efficiency make it especially beneficial for patients who cannot commit to long treatment schedules.

Both Radixact SynC and CyberKnife S7 Systems are designed to improve the radiation treatment experience while making high-precision care available to more patients.

Favorable Industry Prospects for ARAY Stock

Per a report by Grand View Research, the global radiation oncology market size was valued at $9.37 billion in 2023 and is expected to witness a CAGR of 12.3% from 2024 to 2030.

Key factors driving the market include technological advancement in radiation therapy equipment, global rise in cancer cases, and increasing adoption of radiation therapy in oncology treatment.

ARAY’s Zacks Rank & Stocks to Consider

ARAY carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are Masimo MASI, ResMed RMD and Abbott Laboratories ABT.

Masimo, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 31.7% against the industry’s 1% decline in the past six months.

ResMed, carrying a Zacks Rank #2 at present, has an estimated earnings per share growth rate of 21.1% for 2025.

ResMed’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.41%. Its shares have risen 31.6% against the industry’s 12.8% decline in the past year.

Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.

ABT’s shares have risen 8.5% in the past six months compared with the industry’s 7.2% growth.

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