Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1][2]. Company Overview: Cardinal Health (CAH) - Cardinal Health currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3]. - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook based on historical performance metrics [4]. Performance Metrics - Over the past week, CAH shares increased by 2%, outperforming the Zacks Medical - Dental Supplies industry, which rose by 0.57% [6]. - In a longer timeframe, CAH's monthly price change is 29.59%, significantly higher than the industry's 3.41% [6]. - Over the last quarter, CAH shares have risen by 41.56%, and over the past year, they have increased by 73.81%, while the S&P 500 only moved 5.68% and 14.42% respectively [7]. Trading Volume - CAH's average 20-day trading volume is 2,914,504 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, 7 earnings estimates for CAH have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $9.45 to $9.86 [10]. - For the next fiscal year, 6 estimates have also moved higher, with no downward revisions during the same period [10]. Conclusion - Considering the strong performance metrics and positive earnings outlook, CAH is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [12].

Core Viewpoint - Align Technology's recent earnings report showed mixed results, with adjusted earnings per share increasing but revenues missing estimates, leading to questions about future performance [2][3][9]. Financial Performance - Adjusted earnings per share for Q2 2025 were $2.49, a 3.3% increase year-over-year, but missed the Zacks Consensus Estimate by 3.1% [2] - GAAP earnings per share rose 43.4% to $1.72 compared to $1.28 in Q2 2024 [2] - Total revenues decreased 1.6% year-over-year to $1.01 billion, missing estimates by 4.6% [3] Segment Analysis - Clear Aligner segment revenues fell 3.3% year-over-year to $804.6 million, with a slight favorable foreign exchange impact of 0.6% [4] - Imaging Systems & CAD/CAM Services revenues increased by 5.6% to $207.8 million, also benefiting from a 0.5% favorable currency impact [4] Margin and Expenses - Gross profit for Q2 was $708.1 million, down 2% year-over-year, with a gross margin of 69.9%, a contraction of 32 basis points [5] - SG&A expenses decreased by 0.8% to $448.7 million, while R&D expenses increased by 4.6% to $96.4 million [5] - Operating income was $163 million, down 8.5% year-over-year, with an operating margin of 16.1%, a decrease of 122 basis points [5] Cash Position - At the end of Q2, cash and cash equivalents stood at $901.2 million, up from $873 million at the end of Q1 [6] - Net cash provided by operating activities was $181.3 million, compared to $188.5 million in Q2 2024 [6] Stock Repurchase - The company repurchased approximately 585.1 thousand shares at an average price of $164.14, completing a $225 million repurchase initiated in Q1 2025 [7] - This marked the completion of a $1 billion stock repurchase program approved in January 2023 [7] Future Outlook - For full-year 2025, Align Technology expects Clear Aligner revenue growth to be flat to slightly up from 2024, with Systems and Services revenues anticipated to grow faster [9] - The Zacks Consensus Estimate for 2025 revenues is $4.16 billion, indicating a 3.9% year-over-year growth [9] - The company expects a GAAP gross margin of 67-68% and an operating margin between 13% and 14% for 2025 [10] - For Q3 2025, worldwide revenues are projected to be between $965 million and $985 million, with the Zacks Consensus Estimate at $1.04 billion [10] Estimate Trends - Estimates for Align Technology have trended downward, with a consensus estimate shift of -15.84% over the past month [11][13] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [13] Industry Comparison - Align Technology operates within the Zacks Medical - Dental Supplies industry, where competitor West Pharmaceutical Services has seen a 2.6% gain over the past month [14] - West Pharmaceutical reported revenues of $766.5 million, a year-over-year increase of 9.2%, and has a Zacks Rank 1 (Strong Buy) [15][16]