Align Technology (ALGN) closed the most recent trading day at $673.59, moving -0.24% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 0.72%.
Heading into today, shares of the maker of the Invisalign tooth-straightening system had lost 2.09% over the past month, outpacing the Medical sector’s loss of 3.4% and lagging the S&P 500’s gain of 0.11% in that time.
Align Technology will be looking to display strength as it nears its next earnings release. In that report, analysts expect Align Technology to post earnings of $2.67 per share. This would mark 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.
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 should also note any recent changes to analyst estimates for Align Technology. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Align Technology currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Align Technology currently has a Forward P/E ratio of 60.81. This represents a premium compared to its industry’s average Forward P/E of 19.86.
Also, we should mention that ALGN has a PEG ratio of 2.81. 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. ALGN’s industry had an average PEG ratio of 1.52 as of yesterday’s close.
The Medical – Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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