Align Technology (ALGN) Moves 11.1% Higher: Will This Strength Last?
Align Technology ALGN shares ended the last trading session 11.1% higher at $257.02. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.8% gain over the past four weeks.
Align Technology recorded a strong price increase after it announced that Health Canada has issued an updated medical device license to the company for its Invisalign Palatal Expander System (which is available on a limited basis in Canada). The updated license is for broad patient applicability, including growing children, teens and adults (with surgery or other techniques). Also, anticipated better-than-expected fourth-quarter 2023 revenues and earnings per share with the latest Zacks Consensus Estimate showing significant upward revision for the metrices compared to the year-ago reported numbers raise optimism about the stock. The company is expected to release its fourth-quarter earnings on Feb 7, 2024.
This maker of the Invisalign tooth-straightening system is expected to post quarterly earnings of $2.23 per share in its upcoming report, which represents a year-over-year change of +28.9%. Revenues are expected to be $928.43 million, up 3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Align Technology, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on ALGN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Align Technology is part of the Zacks Medical - Dental Supplies industry. Conmed CNMD, another stock in the same industry, closed the last trading session 3.4% higher at $115.05. CNMD has returned 3.2% in the past month.
For Conmed , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.11. This represents a change of +164.3% from what the company reported a year ago. Conmed currently has a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Align Technology, Inc. (ALGN) : Free Stock Analysis Report
CONMED Corporation (CNMD) : Free Stock Analysis Report
