In the latest trading session, Align Technology (ALGN) closed at $463.96, marking a +1.83% move from the previous day. This move lagged the S&P 500's daily gain of 2.44%. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 0.28%.
Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had lost 31.2% over the past month. This has lagged the Medical sector's loss of 12.92% and the S&P 500's loss of 9.65% in that time.
Wall Street will be looking for positivity from Align Technology as it approaches its next earnings report date. This 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.
Investors should also note any 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% lower. Align Technology is currently a Zacks Rank #4 (Sell).
In terms of valuation, Align Technology is currently trading at a Forward P/E ratio of 34.11. Its industry sports an average Forward P/E of 17.94, so we one might conclude that Align Technology is trading at a premium comparatively.
It is also worth noting that ALGN currently has a PEG ratio of 1.57. 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. The Medical - Dental Supplies was holding an average PEG ratio of 1.57 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 85, which puts it in the top 34% 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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