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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Align Technology (ALGN)
Align Technology, based in California, manufactures and markets a system of clear aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services used in dentistry, orthodontics, and dental records storage. The clear aligner system corrects malocclusion using nearly invisible and removable appliances that gently move the tooth to a desired final position.
ALGN is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 17.2X for the current fiscal year compared to the Medical - Dental Supplies industry's P/E of 18.8X. Additionally, ALGN has a PEG Ratio of 1.5 and a Price/Cash Flow ratio of 19.8X. Value investors should also note ALGN's Price/Sales ratio of 3.3X.
A company's earnings performance is important for value investors as well. For fiscal 2025, six analysts revised their earnings estimate higher in the last 60 days for ALGN, while the Zacks Consensus Estimate has increased $0.32 to $10.31 per share. ALGN also holds an average earnings surprise of 3.4%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding ALGN to their portfolios.
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Align Technology, Inc. (ALGN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).