Align Technology (ALGN) Outpaces Stock Market Gains: What You Should Know
Align Technology (ALGN) closed at $653.98 in the latest trading session, marking a +1.25% move from the prior day.
Align Technology (ALGN) closed at $653.98 in the latest trading session, marking a +1.25% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.62%. Elsewhere, the Dow gained 0.55%, while the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the maker of the Invisalign tooth-straightening system had lost 1.12% over the past month, lagging the Medical sector's gain of 2.26% and the S&P 500's gain of 0.39% in that time.
Align Technology will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.67, up 2.3% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.02 billion, up 22.23% from the year-ago period.
ALGN's full-year Zacks Consensus Estimates are calling for earnings of $11.10 per share and revenue of $3.94 billion. These results would represent year-over-year changes of +111.43% and +59.45%, respectively.
It is also important to note the recent changes to analyst estimates for Align Technology. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Align Technology is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Align Technology has a Forward P/E ratio of 58.17 right now. This valuation marks a premium compared to its industry's average Forward P/E of 19.97.
Meanwhile, ALGN's PEG ratio is currently 2.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ALGN's industry had an average PEG ratio of 1.51 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 111, putting it in the top 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Align Technology, Inc. (ALGN): Free Stock Analysis Report
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