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Align Technology (ALGN) Gains As Market Dips: What You Should Know

·3-min read

Align Technology (ALGN) closed at $242.15 in the latest trading session, marking a +0.1% move from the prior day. This change outpaced the S&P 500's 0.07% loss on the day. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.02%.

Coming into today, shares of the maker of the Invisalign tooth-straightening system had lost 12.87% in the past month. In that same time, the Medical sector lost 5.47%, while the S&P 500 lost 7.99%.

Align Technology will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.30, down 24.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 0.26% from the year-ago period.

ALGN's full-year Zacks Consensus Estimates are calling for earnings of $10.14 per share and revenue of $4.24 billion. These results would represent year-over-year changes of -9.63% and +7.34%, respectively.

Investors might also notice recent changes to analyst estimates for Align Technology. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Align Technology is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Align Technology is holding a Forward P/E ratio of 23.86. This valuation marks a premium compared to its industry's average Forward P/E of 18.59.

Also, we should mention that ALGN has a PEG ratio of 3.3. 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. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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