ALGN – Some recent activity

What a difference a price correction makes…..

ALGN Price

While ALGN sat in the upper $140s, it suffered in our JXM analysis, not only falling outside of the top 5, put placing a distant 16th place (below snap shot from 6/11/17).

HC-6-11-17

A day later, after the price correction, ALGN moved back into the Top 5.

HC-6-12-17

This swing displays the power of regular sheet scoring as well as the Valuation Level.  On June 11th, the Valuation score for ALGN was a terrible 38%, but increased to 65% after the price correction.  Backed by dominate Fundamentals, Guru ratings, and JXM Rules, ALGN moved back into the top 3.  While this is a nice overall score, the stock still suffers from a Technical score of only 56%, which is below our target range.

This may indicate a move back to a summer flat-line, as the below chart shows:

10 Yr Historical

As we have stated in the past, should ALGN follow this historic trend, it will be a strong purchase opportunity leading to its earnings report:

EPS History

Last year, it increased by nearly 20% in the month that sandwiched it’s report.

We will check again in a few weeks to see where this one stands.

As an aside, this Healthcare run is filled with potential gems, including EW, VRTX, SUPN, and ABMD.  While ABMD has been on our radar for awhile, we recently posted on SUPN.  VRTX may require a post of its own.

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