Align Technology (ALGN) Dips More Than Broader Markets: What You Should Know
Align Technology (ALGN) closed at $173.16 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's 0.01% loss on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.19%.
Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had lost 7.02% over the past month. This has lagged the Medical sector's gain of 1.02% and the S&P 500's gain of 3.61% in that time.
ALGN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.14, down 8.06% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $592.46 million, up 17.25% from the year-ago period.
ALGN's full-year Zacks Consensus Estimates are calling for earnings of $5.23 per share and revenue of $2.39 billion. These results would represent year-over-year changes of +6.3% and +21.59%, respectively.
It is also important to note the recent changes to analyst estimates for ALGN. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ALGN is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, ALGN is currently trading at a Forward P/E ratio of 33.45. For comparison, its industry has an average Forward P/E of 18.32, which means ALGN is trading at a premium to the group.
Meanwhile, ALGN's PEG ratio is currently 1.37. 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 1.84 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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