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Align Technology (ALGN) Dips More Than Broader Markets: What You Should Know

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Align Technology (ALGN - Free Report) closed the most recent trading day at $409.82, moving -1.7% from the previous trading session. This change lagged the S&P 500's 1.21% loss on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq lost 0.49%.

Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had lost 0.89% over the past month. This has lagged the Medical sector's gain of 8.27% and the S&P 500's gain of 5.85% in that time.

Investors will be hoping for strength from Align Technology as it approaches its next earnings release, which is expected to be April 27, 2022. In that report, analysts expect Align Technology to post earnings of $2.24 per share. This would mark a year-over-year decline of 10.04%. Meanwhile, our latest consensus estimate is calling for revenue of $1 billion, up 11.76% from the prior-year quarter.

ALGN's full-year Zacks Consensus Estimates are calling for earnings of $12.75 per share and revenue of $4.78 billion. These results would represent year-over-year changes of +13.64% and +20.88%, respectively.

It is also important to note the recent changes to analyst estimates for Align Technology. Recent revisions tend to reflect the latest near-term business trends. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Align Technology is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Align Technology is holding a Forward P/E ratio of 32.71. Its industry sports an average Forward P/E of 21.14, so we one might conclude that Align Technology is trading at a premium comparatively.

It is also worth noting that ALGN currently has a PEG ratio of 2.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.59 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 145, putting it in the bottom 43% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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