Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5971
    -0.0004 (-0.07%)
     
  • NZD/EUR

    0.5540
    +0.0007 (+0.13%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     
  • NZD/JPY

    90.3280
    -0.0650 (-0.07%)
     

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

Align Technology (ALGN) closed the most recent trading day at $304.44, moving -0.76% from the previous trading session. This change lagged the S&P 500's 0.12% gain on the day. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq lost 4.09%.

Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had gained 3.61% over the past month. This has outpaced the Medical sector's loss of 2.13% and lagged the S&P 500's gain of 3.98% in that time.

Align Technology will be looking to display strength as it nears its next earnings release. On that day, Align Technology is projected to report earnings of $2.02 per share, which would represent year-over-year growth of 1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $987.69 million, up 1.87% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.31 per share and revenue of $3.89 billion. These totals would mark changes of +7.09% and +4.2%, respectively, from last year.

ADVERTISEMENT

Investors might also notice recent changes to analyst estimates for Align Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.66% lower. Align Technology currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Align Technology is holding a Forward P/E ratio of 36.9. This represents a premium compared to its industry's average Forward P/E of 20.45.

Investors should also note that ALGN has a PEG ratio of 2.14 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.

The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Align Technology, Inc. (ALGN) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research