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

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Align Technology (ALGN - Free Report) closed the most recent trading day at $524.33, moving +1.61% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.32%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Coming into today, shares of the maker of the Invisalign tooth-straightening system had lost 8.69% in the past month. In that same time, the Medical sector gained 0.15%, while the S&P 500 gained 4.4%.

ALGN will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.94, up 165.75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $806.44 million, up 46.37% from the year-ago period.

ALGN's full-year Zacks Consensus Estimates are calling for earnings of $9.13 per share and revenue of $3.48 billion. These results would represent year-over-year changes of +73.9% and +40.68%, respectively.

Investors should also note any recent changes to analyst estimates for ALGN. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.84% higher. ALGN is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note ALGN's current valuation metrics, including its Forward P/E ratio of 56.51. For comparison, its industry has an average Forward P/E of 22.83, which means ALGN is trading at a premium to the group.

Investors should also note that ALGN has a PEG ratio of 2.85 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 industry currently had an average PEG ratio of 2.14 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 84, putting it in the top 33% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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