Align Technology (ALGN - Free Report) closed the most recent trading day at $296.68, moving -0.25% from the previous trading session. This change lagged the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.27%.
Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had lost 7.45% over the past month. This has lagged the Medical sector's loss of 1.96% and the S&P 500's loss of 5.26% in that time.
Wall Street will be looking for positivity from ALGN as it approaches its next earnings report date. The company is expected to report EPS of $1.51, up 16.15% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $595.61 million, up 21.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.49 per share and revenue of $2.44 billion. These totals would mark changes of +11.59% and +24.16%, respectively, from last year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 1.29% higher. ALGN currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that ALGN has a Forward P/E ratio of 54.13 right now. Its industry sports an average Forward P/E of 21.25, so we one might conclude that ALGN is trading at a premium comparatively.
We can also see that ALGN currently has a PEG ratio of 2.31. 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 72, putting it in the top 29% 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.