Not much has changed with ALGN since our stock report on 5/12. The price has been stable and most JXM scores have remained relatively unchanged. As the below table reinforces, ALGN is still an extremely strong scorer.
However, its technical score has fallen a bit to 63%. While the score is still very healthy, the drop-off warrants a closer look at price.
The 10 and 5 year charts below do show some short term weakness but strong long-term potential.
A closer look at the short term broken out to one month from today, shows where this weakness is coming from.
The one-month price behavior is remarkably consistent between long term, 10 yr, and 5 yr trends. All suggest the stock will go down for the next two weeks before moving back up.
Stretching this out to to six months shows a departure of the long and shorter term trends and some larger fluctuations in price as well.
However, the shorter term trends do seem to point to solid price potential for the rest of the year.
Finally the stock has consistently out-performed the SNP over the past year (with circles representing earnings report dates):
While we should stay on top of ALGN’s tech score, it doesn’t appear that we have much to worry about.