Is Align Stock Truly Worth its High Valuation Today?

ALGN has dropped more than 60% in price this year

Jun 10, 2022 at 12:34 PM
facebook X logo linkedin


Align Technology, Inc. (NASDAQ:ALGN) is a dental care company that designs, manufactures, and sells the Invisalign clear aligners used in orthodontics, the iTero intraoral scanners, and the exocad CAD/CAM software. On June 6, Align Technology announced the award of 11 research grants to universities under its 12th Annual Research Award Program. The dental care company awarded $275,000 in research grants to universities worldwide for advancing orthodontics and dental research as part of its ongoing awards program.

Align stock is sitting dangerously close to its roughly five-year low of $250.64, touched on May 12. The 30-day rejected a recent attempt to separate itself from this low, and now ALGN is trading at a 61.1% year-to-date deficit. 

algn june 10

The equity could be ripe for analyst downgrades, as all but one of the eight in coverage call it a "buy" or better. Plus, the 12-month consensus price target of $439.90 is a whopping 71.8% premium to current levels.

The dental care company still provides a high valuation at a forward price-earnings ratio of 27.03 and a price-sales ratio of 5.31 despite Align stock’s bearish form this past year. Align Technology is also anticipated to see a 10.6% decrease in earnings for fiscal 2022.

Nonetheless, ALGN is expected to report a 9.7% increase in revenues for fiscal 2022 and a 18.9% increase for fiscal 2023. The dental care name is also expected to bounce back on the bottom line in fiscal 2023, with a 25.8% estimated increase in earnings, making Align stock an intriguing long-term option as the business recovers from its earnings decline. In addition, Align Technology currently has $1.01 billion in cash and $130.23 million in total debt on their balance sheet, which should help them maintain their top line growth. Overall, Align stock is a viable option for growth investors despite its high valuation currently.

 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI