In the latest trading session, Align Technology (ALGN - Free Report) closed at $245.67, marking a +0.15% move from the previous day. This change outpaced the S&P 500's 0.25% loss on the day. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.53%.
Coming into today, shares of the maker of the Invisalign tooth-straightening system had lost 22.38% in the past month. In that same time, the Medical sector lost 1.06%, while the S&P 500 lost 2.35%.
ALGN will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2019. The company is expected to report EPS of $1.16, down 2.52% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $512.12 million, up 21.55% from the year-ago period.
ALGN's full-year Zacks Consensus Estimates are calling for earnings of $4.89 per share and revenue of $1.95 billion. These results would represent year-over-year changes of +25.71% and +32.13%, respectively.
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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.94% lower. ALGN is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, ALGN is holding a Forward P/E ratio of 50.22. For comparison, its industry has an average Forward P/E of 21.21, which means ALGN is trading at a premium to the group.
It is also worth noting that ALGN currently has a PEG ratio of 2.13. 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. Medical - Dental Supplies stocks are, on average, holding a PEG ratio of 2.09 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 114, putting it in the top 44% 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 Zacks.com.