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Align Technology (ALGN) Stock Moves -0.2%: What You Should Know

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In the latest trading session, Align Technology (ALGN - Free Report) closed at $248.98, marking a -0.2% move from the previous day. This change was narrower than the S&P 500's 0.92% loss on the day. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.05%.

Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had gained 2.24% over the past month. This has lagged the Medical sector's gain of 3.13% and outpaced the S&P 500's loss of 1% in that time.

Wall Street will be looking for positivity from Align Technology as it approaches its next earnings report date. This is expected to be July 27, 2022. On that day, Align Technology is projected to report earnings of $2.30 per share, which would represent a year-over-year decline of 24.34%. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, up 0.26% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.14 per share and revenue of $4.24 billion, which would represent changes of -9.63% and +7.34%, respectively, from the prior year.

Any recent changes to analyst estimates for Align Technology should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. 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.

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. Within the past 30 days, our consensus EPS projection 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 24.6. Its industry sports an average Forward P/E of 21.05, so we one might conclude that Align Technology is trading at a premium comparatively.

We can also see that ALGN currently has a PEG ratio of 3.4. 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 2.14 at yesterday's closing price.

The Medical - Dental Supplies industry is part of the Medical sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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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