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Align Technology Hits 52-Week High on Q3 & Dental Strength
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Share price of San Jose, CA-based Align Technology, Inc. (ALGN - Free Report) scaled a new 52-week high of $102.1 on Dec 19, finally closing a bit lower at $100.3. The stock rallied 56.3% over the past one year, way ahead of the S&P 500’s 11.9%. It has added roughly 52.2% year to date. The stock has a market cap of $7.99 billion.
In the majority of last six months, Align Technology has underperformed the Zacks categorized Medical-Products Industry with respect to share price movement. However the trend improved when the company reported better-than-expected results in the third quarter, with its top and bottom line beating the Zacks Consensus Estimate. The stock has gained 5.1%, compared to the broader industry’s decline of 8.7%.
The company’s third-quarter revenues improved 34.2% year over year whileearnings rose 85.3% year over year. Management also issued a promising outlook.
Further, Align Technology’s estimate revision trend for the current quarter is favorable. In the past 60 days, six estimates have moved up with three revisions going down. The magnitude of estimate revision over the same time period increased from 66 cents per share to 67 cents.
The company’s current year figures also look impressive, with 10 estimates moving higher over the past two months with no downward revision. The consensus estimate trend has also been encouraging over the same time period, increasing from $2.28 per share to $2.42 over the last 60 days.
All the above points justify the company’s Zacks Rank #1 (Strong Buy) and point at its strong fundamentals. The company recorded a five-year CAGR of 15.2% for revenues and an earnings growth rate of 19.2% compared to the industry’s average of 12.3%.
Growth Factors
At present market analysts view Align Technology as one of the best healthcare stocks. The company is currently riding high on its breakthrough Invisalign G7 product which is expected to help the company tap into the opportunities in the growing dental market. Invisalign G7 addresses critical treatment related challenges, especially for teenage patients.
Align Technology’s innovative products Invisalign Clear Aligners, iTero scanners and OrthoCAD digital services help dental professionals achieve the desired clinical results. The company’s flagship products Invisalign Clear Aligners make popular substitutes for metal braces.
Coming to the third-quarter details, Align Technology witnessed balanced sales growth across all its channels. There was strong Invisalign volume growth across all product segments and customer channels, reflecting continued increase in utilization. Total Invisalign Clear Aligner revenues (87.4% of total revenue) jumped 22.9% year over year driven by volume growth across all customer channels and geographies.
Anticipating a rise in demand for digital scanners, Align Technology has joined hands with 3shape – the TRIOS scanner which is slated to hit the market in the fourth quarter. The scanner is expected to act as a great complimentary product to the company’s iTero scanner.
Meanwhile, Align Technology is favorably positioned to continue its remarkable growth through international expansion. The company reported strong performance across all countries, with double-digit growth in Europe, the Middle East and Africa (EMEA) and Asia Pacific. Going forward, management expects to witness consistent growth in the Asia-Pacific region, which will mitigate the typical seasonality in European nations.
Other Key Picks
Other favorably ranked medical stocks are NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 while Bovie Medical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical gained 22.6% over the last one year compared with the S&P 500’s 11.9%. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 21.7% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 114.7% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
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Align Technology Hits 52-Week High on Q3 & Dental Strength
Share price of San Jose, CA-based Align Technology, Inc. (ALGN - Free Report) scaled a new 52-week high of $102.1 on Dec 19, finally closing a bit lower at $100.3. The stock rallied 56.3% over the past one year, way ahead of the S&P 500’s 11.9%. It has added roughly 52.2% year to date. The stock has a market cap of $7.99 billion.
In the majority of last six months, Align Technology has underperformed the Zacks categorized Medical-Products Industry with respect to share price movement. However the trend improved when the company reported better-than-expected results in the third quarter, with its top and bottom line beating the Zacks Consensus Estimate. The stock has gained 5.1%, compared to the broader industry’s decline of 8.7%.
The company’s third-quarter revenues improved 34.2% year over year whileearnings rose 85.3% year over year. Management also issued a promising outlook.
Further, Align Technology’s estimate revision trend for the current quarter is favorable. In the past 60 days, six estimates have moved up with three revisions going down. The magnitude of estimate revision over the same time period increased from 66 cents per share to 67 cents.
The company’s current year figures also look impressive, with 10 estimates moving higher over the past two months with no downward revision. The consensus estimate trend has also been encouraging over the same time period, increasing from $2.28 per share to $2.42 over the last 60 days.
ALIGN TECH INC Price and Consensus
ALIGN TECH INC Price and Consensus | ALIGN TECH INC Quote
All the above points justify the company’s Zacks Rank #1 (Strong Buy) and point at its strong fundamentals. The company recorded a five-year CAGR of 15.2% for revenues and an earnings growth rate of 19.2% compared to the industry’s average of 12.3%.
Growth Factors
At present market analysts view Align Technology as one of the best healthcare stocks. The company is currently riding high on its breakthrough Invisalign G7 product which is expected to help the company tap into the opportunities in the growing dental market. Invisalign G7 addresses critical treatment related challenges, especially for teenage patients.
Align Technology’s innovative products Invisalign Clear Aligners, iTero scanners and OrthoCAD digital services help dental professionals achieve the desired clinical results. The company’s flagship products Invisalign Clear Aligners make popular substitutes for metal braces.
Coming to the third-quarter details, Align Technology witnessed balanced sales growth across all its channels. There was strong Invisalign volume growth across all product segments and customer channels, reflecting continued increase in utilization. Total Invisalign Clear Aligner revenues (87.4% of total revenue) jumped 22.9% year over year driven by volume growth across all customer channels and geographies.
Anticipating a rise in demand for digital scanners, Align Technology has joined hands with 3shape – the TRIOS scanner which is slated to hit the market in the fourth quarter. The scanner is expected to act as a great complimentary product to the company’s iTero scanner.
Meanwhile, Align Technology is favorably positioned to continue its remarkable growth through international expansion. The company reported strong performance across all countries, with double-digit growth in Europe, the Middle East and Africa (EMEA) and Asia Pacific. Going forward, management expects to witness consistent growth in the Asia-Pacific region, which will mitigate the typical seasonality in European nations.
Other Key Picks
Other favorably ranked medical stocks are NxStage Medical Inc. , Baxter International Inc. (BAX - Free Report) and Bovie Medical Corporation . NxStage Medical and Baxter International sport a Zacks Rank #1 while Bovie Medical carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NxStage Medical gained 22.6% over the last one year compared with the S&P 500’s 11.9%. The company has a four-quarter average positive earnings surprise of 46.3%.
Baxter International rallied 21.7% over the last one year, much higher than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 27%.
Bovie Medical recorded a 114.7% gain in the past one year, way better than the S&P 500. The company has a trailing four-quarter positive average earnings surprise of 28.7%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>