Align Technology Inc. (ALGN) Stock

Align Technology Inc. trades at a P/E ratio of 34.21, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 18.45 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.02 indicates reasonable value when growth is considered.

With a beta of 1.64, Align Technology Inc. is significantly more volatile than the market. For every 10% market move, this stock tends to move 16% in the same direction. Higher beta stocks offer greater potential returns but with increased risk. The price-to-book ratio of 3.60 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Align Technology Inc. achieves a profit margin of 10.30%, meaning it retains $10.30 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 14.00% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 10.80% and ROA at 6.72%, the company achieves moderate returns on invested capital.

Align Technology Inc.'s revenue declined by 1.80% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 8.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES industry averages for proper context.

Align Technology Inc. has a market capitalization of $13.66B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 72.48M shares outstanding, the company's ownership is relatively concentrated. As a participant in the ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES industry, it competes with other firms in this sector.

Align Technology Inc.'s book value per share is $51.94, while the current stock price is $204.76, resulting in a price-to-book (P/B) ratio of 3.94. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

18 analysts cover ALGN with 61% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $232.34 implies 13.5% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:3 Strong Buy, 8 Buy, 6 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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