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.
Here's Why You Should Retain Align Technology (ALGN) Stock Now
Read MoreHide Full Article
Align Technologies (ALGN - Free Report) is likely to grow in the coming quarters, backed by the increased adoption of the Invisalign Doctor Subscription Program (DSP) buoys optimism, with the company strategically expanding the program in Spain, Nordics and most recently, the United Kingdom and with select DSO partners. However, stiff rivalry and currency fluctuations remain a concern for ALGN.
In the past year, this Zacks Rank #3 (Hold) stock has increased 3.6% compared with the 8% rise of the industry and 26.9% growth of the S&P 500 composite.
The renowned medical device company has a market capitalization of $24.01 billion. In the trailing four quarters, the company delivered an earnings surprise of 5.8%.
Let’s delve deeper.
Upsides
Invisalign’s Untapped Potential: Align Technology is strategically capturing the growing malocclusion market, one of the most prevalent clinical dental conditions in the world.
Per Grand View Research, the global Clear Aligners market was valued at $4.1 billion in 2022 and is projected to witness a CAGR of 30.1% to 2030.
By the end of 2023, the company had achieved several major milestones, including 17 million Invisalign patients treated with 4.7 million teens. Total Invisalign Clear Aligner shipments for teens and younger patients reached a total of 809,000 cases, up 8% compared to 2022 and made up 34% of total Clear Aligner shipments.
Geographic Expansion Continues: Align Technology is expanding its sales and marketing by reaching new countries and regions, including new areas within Africa and Latin America.
Among the recent international updates, in the fourth quarter of 2023, the company announced a 5% global price increase for some Invisalign products across most markets, effective Jan 1, 2024. Invisalign Comprehensive Three and Three products are currently available in certain markets in EMEA and APAC, most recently being launched in China, Korea, Hong Kong, and Taiwan.
iTero in Focus: Align Technology’s iTero intraoral scanners, as the preferred scanning technology for digital dental scans, and its exocad CAD/CAM software, as the dental restorative solution of choice for dental labs, are successfully expanding its foothold in the niche market globally.
Image Source: Zacks Investment Research
In terms of the latest developments with iTero, in the fourth quarter of 2023, the company introduced the iTero Lumina inter-oral scanner with a smaller wand. The wand has unparalleled data capture capabilities for scanning by clinical members. The iTero Lumina inter-oral scanner is available now with orthodontic workflows and will be available in the second half of 2024 restorative workflows.
Downsides
Currency Headwinds: Foreign exchange is a major headwind for Align Technology due to a considerable percentage of its revenues coming from outside the United States (in 2023, 44% of the company’s consolidated revenues came from international regions). In 2023, the strengthening of the U.S. dollar against nearly every other major currency hampered Align Technology’s revenues in the international markets. This was mainly due to the Fed’s 10 consecutive aggressive hikes in interest rates to tackle inflation since March 2022.
Competitive Landscape: Align Technology faces significant competition from traditional orthodontic appliance (or wires and brackets) players such as 3M’s Unitek, Danaher Corporation’s Sybron Dental Specialties and Dentsply International. The company also competes with products similar to Invisalign Technology, such as products from Ormco Orthodontics, a division of Sybron Dental Specialties.
Estimate Trend
The Zacks Consensus Estimate for Align Technologies’ 2024 earnings per share (EPS) has increased from $9.26 to $8.46 in the past 90 days.
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at 4.04 billion. This suggests a 4.6% rise from the year-ago reported number.
Key Picks
Some better-ranked stocks from the broader medical space are Stryker Corporation (SYK - Free Report) , Cencora, Inc. (COR - Free Report) and Cardinal Health (CAH - Free Report) .
Stryker, carrying a Zacks Rank #2 (Buy), reported a fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported a first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health, carrying a Zacks Rank #2, reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Here's Why You Should Retain Align Technology (ALGN) Stock Now
Align Technologies (ALGN - Free Report) is likely to grow in the coming quarters, backed by the increased adoption of the Invisalign Doctor Subscription Program (DSP) buoys optimism, with the company strategically expanding the program in Spain, Nordics and most recently, the United Kingdom and with select DSO partners. However, stiff rivalry and currency fluctuations remain a concern for ALGN.
In the past year, this Zacks Rank #3 (Hold) stock has increased 3.6% compared with the 8% rise of the industry and 26.9% growth of the S&P 500 composite.
The renowned medical device company has a market capitalization of $24.01 billion. In the trailing four quarters, the company delivered an earnings surprise of 5.8%.
Let’s delve deeper.
Upsides
Invisalign’s Untapped Potential: Align Technology is strategically capturing the growing malocclusion market, one of the most prevalent clinical dental conditions in the world.
Per Grand View Research, the global Clear Aligners market was valued at $4.1 billion in 2022 and is projected to witness a CAGR of 30.1% to 2030.
By the end of 2023, the company had achieved several major milestones, including 17 million Invisalign patients treated with 4.7 million teens. Total Invisalign Clear Aligner shipments for teens and younger patients reached a total of 809,000 cases, up 8% compared to 2022 and made up 34% of total Clear Aligner shipments.
Geographic Expansion Continues: Align Technology is expanding its sales and marketing by reaching new countries and regions, including new areas within Africa and Latin America.
Among the recent international updates, in the fourth quarter of 2023, the company announced a 5% global price increase for some Invisalign products across most markets, effective Jan 1, 2024. Invisalign Comprehensive Three and Three products are currently available in certain markets in EMEA and APAC, most recently being launched in China, Korea, Hong Kong, and Taiwan.
iTero in Focus: Align Technology’s iTero intraoral scanners, as the preferred scanning technology for digital dental scans, and its exocad CAD/CAM software, as the dental restorative solution of choice for dental labs, are successfully expanding its foothold in the niche market globally.
In terms of the latest developments with iTero, in the fourth quarter of 2023, the company introduced the iTero Lumina inter-oral scanner with a smaller wand. The wand has unparalleled data capture capabilities for scanning by clinical members. The iTero Lumina inter-oral scanner is available now with orthodontic workflows and will be available in the second half of 2024 restorative workflows.
Downsides
Currency Headwinds: Foreign exchange is a major headwind for Align Technology due to a considerable percentage of its revenues coming from outside the United States (in 2023, 44% of the company’s consolidated revenues came from international regions). In 2023, the strengthening of the U.S. dollar against nearly every other major currency hampered Align Technology’s revenues in the international markets. This was mainly due to the Fed’s 10 consecutive aggressive hikes in interest rates to tackle inflation since March 2022.
Competitive Landscape: Align Technology faces significant competition from traditional orthodontic appliance (or wires and brackets) players such as 3M’s Unitek, Danaher Corporation’s Sybron Dental Specialties and Dentsply International. The company also competes with products similar to Invisalign Technology, such as products from Ormco Orthodontics, a division of Sybron Dental Specialties.
Estimate Trend
The Zacks Consensus Estimate for Align Technologies’ 2024 earnings per share (EPS) has increased from $9.26 to $8.46 in the past 90 days.
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at 4.04 billion. This suggests a 4.6% rise from the year-ago reported number.
Key Picks
Some better-ranked stocks from the broader medical space are Stryker Corporation (SYK - Free Report) , Cencora, Inc. (COR - Free Report) and Cardinal Health (CAH - Free Report) .
Stryker, carrying a Zacks Rank #2 (Buy), reported a fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported a first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health, carrying a Zacks Rank #2, reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion improved 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.