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

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 lower today making it today's featured Health Services laggard. The industry as a whole was unchanged today. By the end of trading, Align Technology fell 53 cents (-2%) to $26.53 on light volume. Throughout the day, one million shares of Align Technology exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $26.46-$27.05 after having opened the day at $27.02 as compared to the previous trading day's close of $27.06. Other companies within the Health Services industry that declined today were: Electromed ( ELMD), down 14.3%, Alphatec Holdings ( ATEC), down 10.3%, Oculus Innovative ( OCLS), down 10.1%, and Retractable Technologies ( RVP), down 9.2%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $2.23 billion and is part of the health care sector. The company has a P/E ratio of 32.6, above the S&P 500 P/E ratio of 17.7. Shares are up 14.1% year to date as of the close of trading on Monday. Currently there are eight 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, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Cynosure ( CYNO), up 10.7%, Young Innovations ( YDNT), up 9.5%, SunLink Health Systems ( SSY), up 8.9%, and BG Medicine ( BGMD), up 6.4%, were all gainers within the health services industry with Varian Medical Systems ( VAR) being today's featured health services industry leader.

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).

Holiday Special: Subscribe to Action Alerts PLUS to see how Jim Cramer trades his $2.5 Million+ portfolio for 51% off the list price. Your first 14-days are FREE: Sign up today to get e-mail alerts before every trade.
null

If you liked this article you might like

Bears Are Looming Over Amazon: Cramer's 'Mad Money' Recap (Wed 8/23/17)

Jack Dorsey's Odd Couple Win Big; Estee Lauder's Stunning Quarter: Jim Cramer's Best Blog

Cramer: Estee Lauder Puts a (Selfie-Ready) Face on a Stunning Quarter

Analysts' Actions -- Amazon, CVS, Raytheon, Western Digital and More