Align Technology

ALGN
Delayed Nasdaq - 10/18 10:00:00 pm
213.88USD
-0.02%

A support level that should be taken advantage of

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Patrick Rejaunier
Equity Analyst

Strategy published on : 10/07/2019 | 08:47

long trade
Live

Entry price : 177.85$
Target : 220$
Stop-loss : 173.16$
Potential : 23.7%

Align Technology shares are closing back in on major support levels around 173.16 USD based on daily price data, which could offer attractive entry points.
Investors have an opportunity to buy the stock and target the $ 220.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.


Strengths

● The share is getting closer to its long-term support in weekly data, at USD 175.04, which offers good timing for buyers.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.

● The company returns high margins, thereby supporting business profitability.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Historically, the company has been releasing figures that are above expectations.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● Based on current prices, the company has particularly high valuation levels.

● With an expected P/E ratio at 35.16 and 28.14 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.

● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 241.26 USD

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