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

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Align Technology (ALGN - Free Report) closed at $648.05 in the latest trading session, marking a -1.39% move from the prior day. This change lagged the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.46%.

Coming into today, shares of the maker of the Invisalign tooth-straightening system had gained 6.04% in the past month. In that same time, the Medical sector gained 5.28%, while the S&P 500 gained 4.56%.

Wall Street will be looking for positivity from Align Technology as it approaches its next earnings report date. In that report, analysts expect Align Technology to post earnings of $2.51 per share. This would mark a year-over-year decline of 3.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.02 billion, up 22.23% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Align Technology. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Align Technology currently has a Forward P/E ratio of 59.19. For comparison, its industry has an average Forward P/E of 20.26, which means Align Technology is trading at a premium to the group.

We can also see that ALGN currently has a PEG ratio of 2.73. 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. ALGN's industry had an average PEG ratio of 1.57 as of yesterday's close.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% 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.

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


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