Align Technology (ALGN) Stock Moves -1.4%: What You Should Know
In the latest trading session, Align Technology (ALGN) closed at $436, marking a -1.4% move from the previous day. This change was narrower than the S&P 500's 1.57% loss on the day. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had lost 10.88% over the past month. This has lagged the Medical sector's gain of 5.64% and the S&P 500's gain of 5.37% in that time.
Investors will be hoping for strength from Align Technology as it approaches its next earnings release. The company is expected to report EPS of $2.24, down 10.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1 billion, up 11.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.75 per share and revenue of $4.78 billion, which would represent changes of +13.64% and +20.88%, respectively, from the prior year.
Investors might also notice 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.
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.
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 remained stagnant. Align Technology is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Align Technology currently has a Forward P/E ratio of 34.69. This represents a premium compared to its industry's average Forward P/E of 20.9.
Also, we should mention that ALGN has a PEG ratio of 2.74. 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 2.45 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 105, which puts it in the top 42% 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.
To follow ALGN in the coming trading sessions, be sure to utilize Zacks.com.
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