Back to top
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Align Technology, Inc. (ALGN) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Align Technology, Inc. (ALGN) - free report >>
Image: Bigstock
Align Technology's Invisalign Dependence: Boon or Curse?
On Aug 16, 2016, we issued an updated research report on California-based Align Technology Inc. (ALGN - Free Report) , a developer of aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services. Currently, Align carries a Zacks Rank #2 (Buy).
Align Technology ended the second-quarter 2016 on a promising note, squarely beating the Zacks Consensus Estimate. Persistent strong Invisalign volume growth across the company’s entire customer base, primarily drove the encouraging results.
Geographically, the company was successful in delivering double-digit sales growth in North America as well as overseas. In the North America, the company witnessed continued increase in utilization among its orthodontist customers, which reached record levels in both ortho and GP channels.
In the international space also, the company delivered a strong performance across all countries.In the EMEA region, growth was led by Spain, France and the Netherlands. In Asia Pacific, strong expansion was observed in China, Japan, South Asia and Taiwan.
However, a vast majority of Align’s total net revenues is highly dependent on the sale of its Invisalign System and the same trend is expected to continue at least in the near future.Management fears that if somehow consumer demand for Align’s orthodontic services declines or consumers become averse to adopt Invisalign as rapidly as management expects it, then that might affect the company’s business severely.
We are concerned about the ongoing economic uncertainty too, which casts a gloom on Align’s dental procedures as well. the competitive landscape also remains a major headwind.
Key Picks in the Sector
Some better-ranked medical stocks worth mentioning are ANI Pharmaceuticals, Inc. (ANIP - Free Report) , Anika Therapeutics Inc. (ANIK - Free Report) and Heska Corp. . All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>