Align Technology (ALGN) closed at $662.22 in the latest trading session, marking a +1.36% move from the prior day. This move outpaced the S&P 500’s daily loss of 0.3%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.2%.
Coming into today, shares of the maker of the Invisalign tooth-straightening system had gained 8.48% in the past month. In that same time, the Medical sector gained 3.85%, while the S&P 500 gained 3.11%.
Wall Street will be looking for positivity from Align Technology as it approaches its next earnings report date. The company is expected to report EPS of $2.67, up 2.3% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.02 billion, up 22.23% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.10 per share and revenue of $3.94 billion, which would represent changes of +111.43% and +59.45%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Align Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 remained stagnant. Align Technology is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Align Technology is currently trading at a Forward P/E ratio of 58.84. This valuation marks a premium compared to its industry’s average Forward P/E of 20.37.
Meanwhile, ALGN’s PEG ratio is currently 2.72. 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. ALGN’s industry had an average PEG ratio of 1.58 as of yesterday’s close.
The Medical – Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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