Why Is Align Technology (ALGN) Down 0.6% Since Last Earnings Report?

A month has gone by since the last earnings report for Align Technology (ALGN). Shares have lost about 0.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Align Technology due for a breakout? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Align Technology Earnings Fall Shy of Estimates in Q2

Segments in Detail

Margins

Financial Details

Guidance

The uncertainties regarding the duration and impact of the coronavirus pandemic on the company’s overall business have compelled Align Technology to refrain from providing any guidance for the third quarter of 2020.

In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -19.07% due to these changes.

At this time, Align Technology has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren’t focused on one strategy, this score is the one you should be interested in.

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Align Technology has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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