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Here's Why You Should Buy Align Technology (ALGN) Now
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Align Technology (ALGN - Free Report) has been gaining from robust international performance across geographies. The company’s strong fourth-quarter 2020 segmental performance buoys optimism. Continued adoption of its digital platform is expected to further drive its rally.
Over the past year, shares of this Zacks Rank #1 (Strong Buy) company have outperformed the industry. The company have surged 147.4% compared with 32.3% growth of industry 42.5% rise of the S&P 500.
The renowned medical device provider specializes in clear aligner therapy, intra-oral scanners, and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services used in dentistry, orthodontics and dental records storage. It has a market capitalization of $42.45 billion. The company projects 19.8% growth for the next five years and expects to maintain its strong segmental performance. Further, the company surpassed estimates in two of the trailing four quarter.
Let’s delve deeper.
Impressive Q4 Results: We are upbeat about Align Technology’s recently-announced fourth-quarter performance. The company reported better-than-expected results despite the challenging business environment. Align Technology saw significant year-over-year growth in sales of Invisalign clear aligners and iTero scanners. Impressive international performance across geographies and increased shipment volumes buoy optimism on the stock. The company’s Consumer and Patient app was rolled out to more than 50 markets, thus instilling confidence in the stock. Margin expansion looks encouraging as well.
Portfolio Expansion: We are upbeat about Align Technology’s Invisalign product developments and adoption across geographies. In February, Align Technology extends the commercial availability of Invisalign G8 with SmartForce Aligner Activation worldwide. Further, the company announced a partnership with the six-time NBA Champion Golden State Warriors, making the Invisalign brand the Official Smile Partner of the Golden State Warriors. During the same month, the company launched iTero Element Plus Series, which expands its portfolio of iTero Element scanners and imaging systems to include new solutions that serve a broader range of the dental market.
International Performance: During the fourth quarter, Align Technology witnessed strength in the Americas and EMEA, which drove the System and Services segment’s revenues by 18% on a sequential basis. Year over year, the segment recorded an uptick of 26% on strong growth in EMEA and Asia-Pacific regions. Further, Clear Aligner volumes were up 34.1% and 41.1% year over year in the Americas and International regions, respectively, during the reported quarter.
Estimate Trends
Align Technology is witnessing a positive estimate revision trend for the current year. Over the past 90 days, the Zacks Consensus Estimate for its earnings has moved 11.3% north to $9.09.
The Zacks Consensus Estimate for the company’s first-quarter fiscal 2021 revenues is pegged at $805 million, suggesting a 46.1% rise from the year-ago reported number.
The Cooper Companies currently carries a Zacks Rank #2 (Buy) and has a projected long term earnings growth rate of 11%.
Invacare currently carries a Zacks Rank #2 and has an estimated long-term earnings growth rate of 57%.
McKesson currently carries a Zacks Rank #2 and has a projected long-term earnings growth rate of 7%.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Here's Why You Should Buy Align Technology (ALGN) Now
Align Technology (ALGN - Free Report) has been gaining from robust international performance across geographies. The company’s strong fourth-quarter 2020 segmental performance buoys optimism. Continued adoption of its digital platform is expected to further drive its rally.
Over the past year, shares of this Zacks Rank #1 (Strong Buy) company have outperformed the industry. The company have surged 147.4% compared with 32.3% growth of industry 42.5% rise of the S&P 500.
The renowned medical device provider specializes in clear aligner therapy, intra-oral scanners, and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services used in dentistry, orthodontics and dental records storage. It has a market capitalization of $42.45 billion. The company projects 19.8% growth for the next five years and expects to maintain its strong segmental performance. Further, the company surpassed estimates in two of the trailing four quarter.
Let’s delve deeper.
Impressive Q4 Results: We are upbeat about Align Technology’s recently-announced fourth-quarter performance. The company reported better-than-expected results despite the challenging business environment. Align Technology saw significant year-over-year growth in sales of Invisalign clear aligners and iTero scanners. Impressive international performance across geographies and increased shipment volumes buoy optimism on the stock. The company’s Consumer and Patient app was rolled out to more than 50 markets, thus instilling confidence in the stock. Margin expansion looks encouraging as well.
Portfolio Expansion: We are upbeat about Align Technology’s Invisalign product developments and adoption across geographies.
In February, Align Technology extends the commercial availability of Invisalign G8 with SmartForce Aligner Activation worldwide. Further, the company announced a partnership with the six-time NBA Champion Golden State Warriors, making the Invisalign brand the Official Smile Partner of the Golden State Warriors. During the same month, the company launched iTero Element Plus Series, which expands its portfolio of iTero Element scanners and imaging systems to include new solutions that serve a broader range of the dental market.
International Performance: During the fourth quarter, Align Technology witnessed strength in the Americas and EMEA, which drove the System and Services segment’s revenues by 18% on a sequential basis. Year over year, the segment recorded an uptick of 26% on strong growth in EMEA and Asia-Pacific regions. Further, Clear Aligner volumes were up 34.1% and 41.1% year over year in the Americas and International regions, respectively, during the reported quarter.
Estimate Trends
Align Technology is witnessing a positive estimate revision trend for the current year. Over the past 90 days, the Zacks Consensus Estimate for its earnings has moved 11.3% north to $9.09.
The Zacks Consensus Estimate for the company’s first-quarter fiscal 2021 revenues is pegged at $805 million, suggesting a 46.1% rise from the year-ago reported number.
Other Key Picks
Some other top-ranked stocks from the broader medical space are The Cooper Companies, Inc. (COO - Free Report) , Invacare Corporation and McKesson Corporation (MCK - Free Report) . You can see the complete list of Zacks #1 Rank stocks here.
The Cooper Companies currently carries a Zacks Rank #2 (Buy) and has a projected long term earnings growth rate of 11%.
Invacare currently carries a Zacks Rank #2 and has an estimated long-term earnings growth rate of 57%.
McKesson currently carries a Zacks Rank #2 and has a projected long-term earnings growth rate of 7%.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>