EarningsBeats Digest

Published: Wed, 02/02/22

EarningsBeats.com Digest for February 2, 2022

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Will Earnings Help Provide A Relief Rally For This Medical Supplier

It's been a brutal year thus far for most U.S. equities, despite the recent 3-day rally. Align Technology (ALGN) is one of those beaten-down stocks that could continue to use a bit of relief. Heading into its earnings report this afternoon, ALGN not only has been trading lower on an absolute basis, but it's been underperforming its medical supply peers ($DJUSMS) by a wide margin as well. Take a look:

After recently setting its 52-week low, ALGN rebounded and is now up against 20-day EMA resistance. The break down in price was closer to 575-585, so a move through the 20-day EMA, even if just temporarily, could yield another 15% or so move to the upside. It's very difficult to trust a company to report solid earnings, however, when they're trading so poorly vs. their group AND when their group is out of favor simultaneously. Let's see what ALGN reports after the close today.

Happy Trading!

Tom Bowley
Chief Market Strategist

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