Align Technology (ALGN - Free Report) closed the most recent trading day at $266.06, moving -0.87% from the previous trading session. This change lagged the S&P 500's 0.01% gain on the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.2%.
Prior to today's trading, shares of the maker of the Invisalign tooth-straightening system had gained 3.05% over the past month. This has lagged the Medical sector's gain of 6% and outpaced the S&P 500's gain of 2.67% in that time.
Investors will be hoping for strength from ALGN as it approaches its next earnings release. On that day, ALGN is projected to report earnings of $1.39 per share, which would represent year-over-year growth of 15.83%. Our most recent consensus estimate is calling for quarterly revenue of $645.41 million, up 20.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.39 per share and revenue of $2.40 billion, which would represent changes of +9.55% and +22.17%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for ALGN. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 remained stagnant. ALGN is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note ALGN's current valuation metrics, including its Forward P/E ratio of 49.79. For comparison, its industry has an average Forward P/E of 21.25, which means ALGN is trading at a premium to the group.
Investors should also note that ALGN has a PEG ratio of 2.25 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. The Medical - Dental Supplies industry currently had an average PEG ratio of 2.25 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 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.