Align Technology (ALGN) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Align Technology (ALGN) closed at $273.91, marking a +1.84% move from the previous day. This change outpaced the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.34%.
Heading into today, shares of the maker of the Invisalign tooth-straightening system had gained 4.15% over the past month, outpacing the Medical sector's loss of 0.3% and the S&P 500's gain of 0.64% 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 $0.83, down 29.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $530.19 million, up 21.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.08 per share and revenue of $2.43 billion, which would represent changes of +3.25% and +23.72%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ALGN. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% higher. ALGN currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ALGN has a Forward P/E ratio of 52.92 right now. Its industry sports an average Forward P/E of 21.46, so we one might conclude that ALGN is trading at a premium comparatively.
Meanwhile, ALGN's PEG ratio is currently 2.45. 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 industry currently had an average PEG ratio of 2.21 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.