Align Technology (ALGN) closed the most recent trading day at $202.64, moving +1.16% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.45%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 0.42%.
Coming into today, shares of the maker of the Invisalign tooth-straightening system had lost 8.65% in the past month. In that same time, the Medical sector lost 4.12%, while the S&P 500 lost 1.64%.
ALGN will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2019. In that report, analysts expect ALGN to post earnings of $1.16 per share. This would mark a year-over-year decline of 2.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $512.03 million, up 21.53% from the year-ago period.
It is also important to note the recent changes to analyst estimates for ALGN. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.56% lower within the past month. ALGN is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, ALGN is currently trading at a Forward P/E ratio of 34.24. This represents a premium compared to its industry's average Forward P/E of 18.79.
Also, we should mention that ALGN has a PEG ratio of 1.45. 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 industry currently had an average PEG ratio of 2.03 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 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.
You can find more information on all of these metrics, and much more, on Zacks.com.