In the latest trading session, Align Technology (ALGN - Free Report) closed at $186.71, marking a +1.04% move from the previous day. This change lagged the S&P 500's 3.43% gain on the day. Elsewhere, the Dow gained 3.29%, while the tech-heavy Nasdaq added 4.26%.
Heading into today, shares of the maker of the Invisalign tooth-straightening system had lost 15.76% over the past month, lagging the Medical sector's loss of 11.69% and the S&P 500's loss of 12.15% in that time.
ALGN will be looking to display strength as it nears its next earnings release, which is expected to be January 29, 2019. In that report, analysts expect ALGN to post earnings of $1.16 per share. This would mark a year-over-year decline of 2.52%. Meanwhile, our latest consensus estimate is calling for revenue of $512.03 million, up 21.53% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for ALGN. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. ALGN is currently a Zacks Rank #3 (Hold).
Investors should also note ALGN's current valuation metrics, including its Forward P/E ratio of 31.41. This represents a premium compared to its industry's average Forward P/E of 17.44.
Also, we should mention that ALGN has a PEG ratio of 1.33. 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. ALGN's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Medical - Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 157, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.