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Align Technology (ALGN) closed the most recent trading day at $254.08, moving -0.31% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.84%. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.07%.
Heading into today, shares of the maker of the Invisalign tooth-straightening system had gained 8.7% over the past month, outpacing the Medical sector's gain of 6.79% and the S&P 500's gain of 2.02% in that time.
Investors will be hoping for strength from Align Technology as it approaches its next earnings release, which is expected to be July 27, 2022. The company is expected to report EPS of $2.27, down 25.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, down 0.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.05 per share and revenue of $4.22 billion. These totals would mark changes of -10.43% and +6.79%, respectively, from last year.
Any recent changes to analyst estimates for Align Technology should also be noted by investors. 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. 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. The Zacks Consensus EPS estimate has moved 1.22% lower within the past month. Align Technology is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Align Technology has a Forward P/E ratio of 25.37 right now. For comparison, its industry has an average Forward P/E of 21.34, which means Align Technology is trading at a premium to the group.
It is also worth noting that ALGN currently has a PEG ratio of 3.5. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Dental Supplies industry currently had an average PEG ratio of 2.22 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Align Technology, Inc. (ALGN) : Free Stock Analysis Report
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