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Align Technology (ALGN) closed the most recent trading day at $601.64, moving -1.91% from the previous trading session. This change lagged the S&P 500's daily loss of 1.31%.
Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had gained 4.33% over the past month. This has outpaced the Medical sector's gain of 3.6% and the S&P 500's gain of 1.56% in that time.
ALGN will be looking to display strength as it nears its next earnings release. On that day, ALGN is projected to report earnings of $2.56 per share, which would represent year-over-year growth of 831.43%. Meanwhile, our latest consensus estimate is calling for revenue of $937.52 million, up 166.11% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.53 per share and revenue of $3.79 billion. These totals would mark changes of +100.57% and +53.42%, respectively, from last year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.42% higher. ALGN is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, ALGN is holding a Forward P/E ratio of 58.25. For comparison, its industry has an average Forward P/E of 22.89, which means ALGN is trading at a premium to the group.
Also, we should mention that ALGN has a PEG ratio of 2.51. 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. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 1.81 based on yesterday's closing prices.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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