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In the latest trading session, Align Technology (ALGN) closed at $566.96, marking a -1.48% move from the previous day. This change lagged the S&P 500's daily loss of 0.36%.
Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had gained 1.1% over the past month. This has outpaced the Medical sector's loss of 0.64% and the S&P 500's gain of 0.75% in that time.
Investors will be hoping for strength from ALGN as it approaches its next earnings release. The company is expected to report EPS of $2.54, up 825.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $914.34 million, up 159.53% from the year-ago period.
ALGN's full-year Zacks Consensus Estimates are calling for earnings of $10.50 per share and revenue of $3.78 billion. These results would represent year-over-year changes of +100% and +52.95%, respectively.
It is also important to note the recent changes to analyst estimates for ALGN. These recent revisions tend to reflect the evolving nature of short-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. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. ALGN is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, ALGN is currently trading at a Forward P/E ratio of 54.79. For comparison, its industry has an average Forward P/E of 23.15, which means ALGN is trading at a premium to the group.
We can also see that ALGN currently has a PEG ratio of 2.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Dental Supplies was holding an average PEG ratio of 1.78 at yesterday's closing price.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 117, putting it in the top 47% 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.
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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Align Technology, Inc. (ALGN) : Free Stock Analysis Report
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