Could Align Technology Inc. (NASDAQ:ALGN) shock you?

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Shares of Align Technology, Inc. (NASDAQ:ALGN) are currently poised at 0.11% from the open today and are trading at $120.09. More than 1,274,600 shares have exchanged hands compared to an average trading volume of 772.20K. At the current pps, the market cap stands at $9.54B. The stock prices of Align Technology, Inc. (NASDAQ:ALGN) are currently trading at -1.40% below its 52 week high and 71.48% above its 52 week low.

Align Technology, Inc. (NASDAQ:ALGN) has been in the news for all the right reasons. Recently, Align Technology, Inc. (NASDAQ:ALGN) announced financial results for the first quarter ended March 31, 2017. Invisalign case shipments in the first quarter of 2017 (Q1’17) were 208.1 thousand, a 27.1% increase year-over-year. For Q1’17, revenues were $310.3 million, a 30.0% increase year-over-year, and net profit was $69.4 million, or $0.85 per diluted share, up $0.35 per diluted share compared to the same period in the prior year. Q1’17 EPS included the benefit of $21.3 million, or $0.26, from excess tax benefits on stock based compensation in accordance with the new accounting guidance.

Align Technology, Inc. (NASDAQ:ALGN) is all set to announce its earnings on Apr 27/a. As per Zack’s analyst ratings, Align Technology, Inc. (NASDAQ:ALGN) currently has an average brokerage rating of 1.45. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:ALGN) is $120.444 with a high of $145 and a low of $105.

Let’s take a look at the technical analysis.

The Barchart Technical Opinion rating is a 96% Buy with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Maximum. Long term indicators fully support a continuation of the trend.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The long term and short term EMA’s of 119.32 and 111.14 are lower than the current trading price suggesting a bullish pattern in both short term as well as long term.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 71.10 suggesting a bullish price action.

As such, while we believe Align Technology, Inc. (NASDAQ:ALGN) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

Align Technology Inc. designs, manufactures and markets the Invisalign System, a proprietary method for treating malocclusion. The System corrects malocclusion using a series of clear, removable appliances that gently move teeth to a desired final position. Because it does not rely on the use of metal or ceramic brackets and wires, the System significantly reduces the aesthetic and other limitations associated with braces. The Invisalign System also offers orthodontists a new means of carrying out their diagnosis and treatment planning processes.

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