Back to top

Image: Bigstock

Is Align Technology (ALGN) Stock Outpacing Its Medical Peers This Year?

Read MoreHide Full Article

For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Align Technology (ALGN - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Align Technology is one of 1113 individual stocks in the Medical sector. Collectively, these companies sit at #6 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Align Technology is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ALGN's full-year earnings has moved 5.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ALGN has returned 69% so far this year. In comparison, Medical companies have returned an average of -3.3%. This means that Align Technology is performing better than its sector in terms of year-to-date returns.

One other Medical stock that has outperformed the sector so far this year is Brainsway Ltd. Sponsored ADR (BWAY - Free Report) . The stock is up 37.7% year-to-date.

For Brainsway Ltd. Sponsored ADR, the consensus EPS estimate for the current year has increased 7.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Align Technology belongs to the Medical - Dental Supplies industry, a group that includes 17 individual stocks and currently sits at #94 in the Zacks Industry Rank. Stocks in this group have gained about 16.4% so far this year, so ALGN is performing better this group in terms of year-to-date returns.

In contrast, Brainsway Ltd. Sponsored ADR falls under the Medical - Products industry. Currently, this industry has 99 stocks and is ranked #102. Since the beginning of the year, the industry has moved -2.4%.

Align Technology and Brainsway Ltd. Sponsored ADR could continue their solid performance, so investors interested in Medical stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Align Technology, Inc. (ALGN) - free report >>

Brainsway Ltd. Sponsored ADR (BWAY) - free report >>

Published in