Expanding growth in this stock should make you smile. Check out Align Tech (ALGN) (December 17, 2016)
ALGN
I want to look at Align Technology ( NASDAQ:ALGN ), Invisalign (hey I have had them, my teeth are really, really straight). The bottom line is, this is a company that is growing really, really fast. This has been trading sideways for a while. The chart looks good, but here is the deal with the fundamentals: In terms of earnings per share growth per quarter, when we compare it to the same quarter from the prior year, earning per share growth, over the last four comparisons we have got earnings per share growth of 25 percent, then 32 percent, then 59 percent, then 85 percent. So it is not only GROWING with each quarter, but the RATE of growth is increasing.
Similarly with revenue, same deal, quarter versus same quarter last year, 16 percent, 21 percent revenue growth versus the same quarter the prior year, 29 percent, and then 34 percent. So once again, just like in earnings growth, we have an ACCELERATING rate of sales growth. So this is a company that fundamentally is doing really well. Now that turns us to the chart. Because the fundamentals are so strong, I think this is the chart that you look at; this is the time frame, weekly chart, you just kind of let this thing play out, and then allow the stock to continue trending higher.
I think it is extended now, if this trades sideways for a while, they are not due to report until the end of next month, if it trades sideways for a while that would be a really healthy thing for it to do. I just look at this as the trading range. But one thing I want you to keep in mind, you could have a good buying opportunity next year, in January, even before earnings, and this is why: Because anybody who has been holding this stock since last year, lets say right at the end of the year, $65.00 or so, now it is at over 100.00, so you have more than 50 percent growth in a year. You are not going to see too much selling of this stock right now in December, but come January we could see some profit taking.
So my suggestion would be, hey, if you have been long this stock all year, wait until January to sell it. Don’t sell it now. If you are looking to buy it, know that the fundamentals are really good so THAT takes that out of the equation. Now just look at the chart and see if the market continues to be impressed with the fundamentals. Try to get a better entry, I think you will probably be able to. If you are already long this stock you should be okay with that too, because it has broken out to a new all-time high and it should continue to move over time.
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