Align Technology, Inc. : The underlying trend is in force again

11/02/2021 | 03:04am EST

Tommy Douziech

long trade Stop-loss triggered

Entry price : 663$ | Target : 767$ | Stop-loss : 605$ | Potential : 15.69%

Shares in Align Technology, Inc. show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good. Investors have an opportunity to buy the stock and target the $ 767.

Summary

• The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.

Strengths

• According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
• Before interest, taxes, depreciation and amortization, the company's margins are particularly high.

The group's activity appears highly profitable thanks to its outperforming net margins.

Thanks to a sound financial situation, the firm has significant leeway for investment.

Over the past year, analysts have regularly revised upwards their sales forecast for the company.

Sales forecast by analysts have been recently revised upwards.

For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

Analysts covering this company mostly recommend stock overweighting or purchase.

The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.

Over the past twelve months, analysts' opinions have been strongly revised upwards.

The group usually releases upbeat results with huge surprise rates.

Weaknesses

• The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
• With an expected P/E ratio at 68.37 and 54.52 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
• Based on current prices, the company has particularly high valuation levels.
• The company appears highly valued given the size of its balance sheet.
• The valuation of the company is particularly high given the cash flows generated by its activity.

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