Align Technology at 52-Week High: What's Driving the Stock?

Share price of Align Technology, Inc.ALGN scaled a new 52-week high of $179.96 on Sep 5, eventually closing nominally lower at $179.33. The company has gained 86.2% over a year, much higher than the S&P 500's gain of 12.9% over the same frame. Align Technology has also beat the broader industry 's gain of 3.6% with respect to share price movement over the year. The stock has a market cap of $14.37 billion.

Further, Align Technology's estimate revision trend for the current year is favorable. In the past 60 days, nine estimates moved up while one moved down. The estimates were up from $3.28 per share to $3.40 over the same time frame.

The company also has a trailing four-quarter average positive earnings surprise of 16.7%. Its positive long-term growth of 26.6% holds promise.

Align Technology, Inc. Price and Consensus

Align Technology, Inc. Price and Consensus | Align Technology, Inc. Quote

The company's five-year historical growth rate is also favorable at 19.5% as compared with the broader industry's 10.40%.

Align Technology carries a Zacks Rank #3 (Hold). The company has an impressive Growth Style Score of B. Our Growth Style Score highlights all the vital metrics of a company's financials to obtain a clearer picture of the quality and sustainability of its growth. Our research shows that stocks with Style Scores of A or B when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 offer the best investment opportunities.

Growth Drivers

The market is upbeat about the non-exclusive distribution agreement signed with Patterson Dental in September 2017. Per the agreement, Align Technology's iTero Element intraoral scanning system will be available under Patterson Dental's CAD/CAM portfolio in the United States and Canada. This will boost the iTero scanner customer base to a considerable extent.

Further, in June, Align Technology had announced its inclusion in the esteemed S&P 500 Index, which boosted investors' confidence in the stock considerably.

We are also encouraged by Align Technology's solid second-quarter 2017 performance with year-over-year increase in earnings and revenues. The company's encouraging InvisAlign Technology prospects and growth in North America and international regions also raise hopes. The company recently opened a new InvisAlign Technology Treatment Planning facility in China. Meanwhile, the company's multi-million dollar marketing campaign for the InvisAlign Technology brand is encouraging.

All these factors are expected to boost the company's share price in the days ahead.

Key Picks

A few better-ranked medical stocks are Edwards Lifesciences Corporation EW , Lantheus Holdings, Inc. LNTH and IDEXX Laboratories, Inc. IDXX . Edwards Lifesciences sports a Zacks Rank #1, while Lantheus Holdings and IDEXX Laboratories carry a Zacks Rank #2. You cansee the complete list of today's Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 23.6% over the last six months.

Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has gained 30.2% over the last six months.

IDEXX Laboratories has a long-term expected earnings growth rate of 19.8%. The stock has gained around 5.9% over the last six months.

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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.

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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