Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Align Technology as such a stock due to the following factors:
- ALGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.0 million.
- ALGN has traded 267,053 shares today.
- ALGN is trading at a new lifetime high.
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More details on ALGN:
Align Technology, Inc. operates as a medical device company primarily in the United States and internationally. Currently there are 6 analysts that rate Align Technology a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Align Technology has been 665,000 shares per day over the past 30 days. Align Technology has a market cap of $3.5 billion and is part of the health care sector and health services industry. The stock has a beta of 2.51 and a short float of 7.3% with 13.36 days to cover. Shares are up 59.9% year to date as of the close of trading on Thursday.
rates Align Technology as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.2%. Since the same quarter one year prior, revenues rose by 12.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- ALGN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, ALGN has a quick ratio of 2.44, which demonstrates the ability of the company to cover short-term liquidity needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.01% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Health Care Equipment & Supplies industry average, but is less than that of the S&P 500. The net income increased by 2.9% when compared to the same quarter one year prior, going from $28.49 million to $29.32 million.
- Net operating cash flow has significantly increased by 95.04% to $53.31 million when compared to the same quarter last year. In addition, ALIGN TECHNOLOGY INC has also vastly surpassed the industry average cash flow growth rate of -34.76%.
- You can view the full Align Technology Ratings Report.