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Here's Why You Should Invest in Align Technology (ALGN) Now
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Align Technology, Inc. (ALGN - Free Report) has been gaining investors’ confidence on consistently positive results. Over the past three months, the company’s share price has outperformed its industry. The stock has gained 21.7% compared with the industry’s 5.1%. The company has outperformed the 4.7% gain of the S&P 500 market as well.
This leading manufacturer and marketer of a system of clear aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and manufacturing) digital services used in dentistry, orthodontics and dental records storage has a market cap of $29.61 billion. The company’s five-year historical growth rate is a favorable 25.5% compared with the industry’s 4.9%.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
The company’s earnings estimate revision trend for the current year has been positive. In the past 30 days, nine analysts revised their estimates upward, with no movement in the opposite direction. Resultantly, earnings estimates increased around 0.6% to $4.78 per share.
Further, the Zacks Consensus Estimate for current-year revenues of $1.97 billion reflects an improvement of 34% year over year.
Per our Zacks Style Score system, Align Technology has a Growth Score of A which reflects the company’s solid prospects. Our research shows that stocks with a Growth Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Let’s find out whether the recent positive trend is a sustainable one.
Impressive Quarterly Performance
Align Technology ended the second quarter on a solid note. The company continues to see a solid year-over-year rise in earnings and revenues. We are optimistic about continued strength in Invisalign volumes. The company is upbeat about Invisalign Technology prospects and growth in North America and outside, particularly in the Asia-Pacific and EMEA regions. The strong uptake of iTero scanners across all geographies is impressive as well.
Strong Cash Position
Align Technology exited the second quarter with cash and cash equivalents and short-term marketable securities of $712.5 million, compared with $662.7 million at the end of first-quarter 2018.
In the reported quarter, Align Technology received an additional $600 million stock buy-back authorization. The company currently has approximately $100 million left under the existing stock repurchase program. This indicates a strong cash balance that enables it to adopt share repurchase programs and in turn provide solid returns to investors.
Solid Global Prospects
The company has undertaken several strategies to drive adoption of InvisAlign Technology that includes product/technology development, clinical effectiveness, expansion of the InvisAlign Technology brand and driving international growth.
On a year-over-year basis, Align Technology’s international InvisAlign Technology volumes in the last reported quarter were up 43.4%, reflecting continued strong performance in the Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC) regions. In EMEA, second-quarter volumes were up on solid adoption of Invisalign technology in markets of Eastern Europe and Central Europe. The company also announced the completion of one million shipments in the EMEA region recently.
In the APAC region, the company witnessed strong second-quarter volume growth led by China, Japan, Australia and New Zealand.
Intuitive Surgical’s long-term expected earnings growth rate is 14.7%. The stock carries a Zacks Rank #2.
Inogen’s long-term expected earnings growth rate is 24.5%. The stock carries a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Here's Why You Should Invest in Align Technology (ALGN) Now
Align Technology, Inc. (ALGN - Free Report) has been gaining investors’ confidence on consistently positive results. Over the past three months, the company’s share price has outperformed its industry. The stock has gained 21.7% compared with the industry’s 5.1%. The company has outperformed the 4.7% gain of the S&P 500 market as well.
This leading manufacturer and marketer of a system of clear aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and manufacturing) digital services used in dentistry, orthodontics and dental records storage has a market cap of $29.61 billion. The company’s five-year historical growth rate is a favorable 25.5% compared with the industry’s 4.9%.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
The company’s earnings estimate revision trend for the current year has been positive. In the past 30 days, nine analysts revised their estimates upward, with no movement in the opposite direction. Resultantly, earnings estimates increased around 0.6% to $4.78 per share.
Further, the Zacks Consensus Estimate for current-year revenues of $1.97 billion reflects an improvement of 34% year over year.
Per our Zacks Style Score system, Align Technology has a Growth Score of A which reflects the company’s solid prospects. Our research shows that stocks with a Growth Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Let’s find out whether the recent positive trend is a sustainable one.
Impressive Quarterly Performance
Align Technology ended the second quarter on a solid note. The company continues to see a solid year-over-year rise in earnings and revenues. We are optimistic about continued strength in Invisalign volumes. The company is upbeat about Invisalign Technology prospects and growth in North America and outside, particularly in the Asia-Pacific and EMEA regions. The strong uptake of iTero scanners across all geographies is impressive as well.
Strong Cash Position
Align Technology exited the second quarter with cash and cash equivalents and short-term marketable securities of $712.5 million, compared with $662.7 million at the end of first-quarter 2018.
In the reported quarter, Align Technology received an additional $600 million stock buy-back authorization. The company currently has approximately $100 million left under the existing stock repurchase program. This indicates a strong cash balance that enables it to adopt share repurchase programs and in turn provide solid returns to investors.
Solid Global Prospects
The company has undertaken several strategies to drive adoption of InvisAlign Technology that includes product/technology development, clinical effectiveness, expansion of the InvisAlign Technology brand and driving international growth.
On a year-over-year basis, Align Technology’s international InvisAlign Technology volumes in the last reported quarter were up 43.4%, reflecting continued strong performance in the Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC) regions. In EMEA, second-quarter volumes were up on solid adoption of Invisalign technology in markets of Eastern Europe and Central Europe. The company also announced the completion of one million shipments in the EMEA region recently.
In the APAC region, the company witnessed strong second-quarter volume growth led by China, Japan, Australia and New Zealand.
Other Key Picks
Other top-ranked stocks in the broader medical space are Amedisys, Inc. (AMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Inogen, Inc. (INGN - Free Report) .
Amedisys’s expected long-term earnings growth rate is 18.9%. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical’s long-term expected earnings growth rate is 14.7%. The stock carries a Zacks Rank #2.
Inogen’s long-term expected earnings growth rate is 24.5%. The stock carries a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>