Align Technology (ALGN) closed the most recent trading day at $524.63, moving -0.03% from the previous trading session. This change lagged the S&P 500's 0.08% gain on the day. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 4.81%.
Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had lost 13.86% over the past month. This has lagged the Medical sector's loss of 3.56% and the S&P 500's gain of 0.64% in that time.
Align Technology will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2022. On that day, Align Technology is projected to report earnings of $2.67 per share, which would represent year-over-year growth of 2.3%. Our most recent consensus estimate is calling for quarterly revenue of $1.02 billion, up 22.23% from the year-ago period.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Align Technology has a Forward P/E ratio of 39.22 right now. Its industry sports an average Forward P/E of 20.02, so we one might conclude that Align Technology is trading at a premium comparatively.
Investors should also note that ALGN has a PEG ratio of 1.81 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Dental Supplies was holding an average PEG ratio of 1.6 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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