Align Technology Inc. (ALGN): Today's Featured Health Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Align Technology ( ALGN) pushed the Health Services industry higher today making it today's featured health services winner. The industry as a whole closed the day down 1.2%. By the end of trading, Align Technology rose 54 cents (2.1%) to $26.23 on heavy volume. Throughout the day, 2.4 million shares of Align Technology exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in a price between $25.70-$26.39 after having opened the day at $25.92 as compared to the previous trading day's close of $25.69. Other companies within the Health Services industry that increased today were: Providence Service Corporation ( PRSC), up 17.6%, Spherix ( SPEX), up 12.6%, NxStage Medical Incorporated ( NXTM), up 10.6%, and NeuroMetrix ( NUROD), up 8.1%.
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Align Technology, Inc. designs, manufactures, and markets the invisalign system for treating malocclusion or the misalignment of teeth. Invisalign corrects malocclusion using a series of clear, nearly invisible, removable appliances that gently move teeth to a desired final position. Align Technology has a market cap of $2.12 billion and is part of the health care sector. The company has a P/E ratio of 22.8, above the S&P 500 P/E ratio of 17.7. Shares are up 9.7% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Align Technology a buy, one analyst rates it a sell, and two rate it a hold.

TheStreet Ratings rates Align Technology as a buy. 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, compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Genomic Health ( GHDX), down 17.1%, ZELTIQ Aesthetics ( ZLTQ), down 13.9%, OraSure Technologies ( OSUR), down 12.1%, and Mela ( MELA), down 10.4%, were all laggards within the health services industry with UnitedHealth Group ( UNH) being today's health services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the health services industry could consider Health Care Select Sector SPDR ( XLV) while those bearish on the health services industry could consider ProShares Ultra Short Health Care ( RXD).

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