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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 at $302 in the latest trading session, marking a +1.62% move from the prior day. This move outpaced the S&P 500's daily gain of 1.45%. Meanwhile, the Dow gained 2.12%, and the Nasdaq, a tech-heavy index, added 5.41%.

Heading into today, shares of the maker of the Invisalign tooth-straightening system had lost 2.27% over the past month, outpacing the Medical sector's loss of 3.5% and lagging the S&P 500's gain of 1.53% in that time.

Align Technology will be looking to display strength as it nears its next earnings release. On that day, Align Technology is projected to report earnings of $2.02 per share, which would represent year-over-year growth of 1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $987.66 million, up 1.87% from the year-ago period.

ALGN's full-year Zacks Consensus Estimates are calling for earnings of $8.31 per share and revenue of $3.89 billion. These results would represent year-over-year changes of +7.09% and +4.2%, respectively.

Investors might also notice recent changes to analyst estimates for Align Technology. These recent revisions tend to reflect the evolving nature of short-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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.64% higher. Align Technology is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Align Technology is holding a Forward P/E ratio of 35.75. For comparison, its industry has an average Forward P/E of 20.24, which means Align Technology is trading at a premium to the group.

Investors should also note that ALGN has a PEG ratio of 2.08 right now. 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 2.04 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 39, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on

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