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Align Technology (ALGN) Stock Sinks As Market Gains: What You Should Know

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Align Technology (ALGN) closed at $230.31 in the latest trading session, marking a -1.77% move from the prior day. This change lagged the S&P 500's daily gain of 2.45%. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.4%.

Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had lost 15.87% over the past month. This has lagged the Medical sector's loss of 7.42% and the S&P 500's loss of 5.71% in that time.

Align Technology will be looking to display strength as it nears its next earnings release. In that report, analysts expect Align Technology to post earnings of $2.30 per share. This would mark a year-over-year decline of 24.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.01 billion, up 0.26% from the year-ago period.

ALGN's full-year Zacks Consensus Estimates are calling for earnings of $10.14 per share and revenue of $4.24 billion. These results would represent year-over-year changes of -9.63% and +7.34%, respectively.

Investors should also note any recent changes to analyst estimates for Align Technology. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 remained stagnant within the past month. Align Technology is currently sporting a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Align Technology currently has a Forward P/E ratio of 23.12. For comparison, its industry has an average Forward P/E of 18.02, which means Align Technology is trading at a premium to the group.

Investors should also note that ALGN has a PEG ratio of 3.19 right now. 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 2.06 at yesterday's closing price.

The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 225, which puts it in the bottom 12% 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.

To follow ALGN in the coming trading sessions, be sure to utilize Zacks.com.


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