Trade-Ideas: Align Technology (ALGN) Is Today's New Lifetime High Stock

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 Align Technology ( ALGN) 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 $91.5 million.
  • ALGN has traded 803,255 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 628,900 shares per day over the past 30 days. Align Technology has a market cap of $3.8 billion and is part of the health care sector and health services industry. The stock has a beta of 2.48 and a short float of 7.8% with 2.94 days to cover. Shares are up 71.1% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant 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, increase in stock price during the past year, 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 1.5%. 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.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over 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 -37.43%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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