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

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Align Technology (ALGN - Free Report) closed the most recent trading day at $612.22, moving +1.25% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.34%.

Coming into today, shares of the maker of the Invisalign tooth-straightening system had gained 2.53% in the past month. In that same time, the Medical sector gained 2.22%, while the S&P 500 gained 2.71%.

Investors will be hoping for strength from ALGN as it approaches its next earnings release, which is expected to be July 28, 2021. In that report, analysts expect ALGN to post earnings of $2.56 per share. This would mark year-over-year growth of 831.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $937.52 million, up 166.11% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.53 per share and revenue of $3.79 billion. These totals would mark changes of +100.57% and +53.42%, respectively, from last year.

Any recent changes to analyst estimates for ALGN should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. ALGN is currently a Zacks Rank #2 (Buy).

Investors should also note ALGN's current valuation metrics, including its Forward P/E ratio of 57.42. Its industry sports an average Forward P/E of 26.4, so we one might conclude that ALGN is trading at a premium comparatively.

Meanwhile, ALGN's PEG ratio is currently 2.48. 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 1.84 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 92, which puts it in the top 37% 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.

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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