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Align Technology (ALGN) Prospects Bright, Competition Rife

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On Sep 22, we issued an updated research report on Align Technology, Inc. (ALGN - Free Report) . The stock currently has a Zacks Rank #3 (Hold).

Align Technology, which manufactures and markets 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 been trading above its industry over the past month. The stock has gained 7.4% in this period as compared to 1% growth of the industry. The company’s strong InvisAlign Technology prospects and growth in North America and international regions look encouraging.

Align Technology witnessed balanced sales growth across all its channels over the recent past, primarily driven by continued strong InvisAlign Technology case volumes across all customer channels and geographies.

Align Technology, Inc. Price


Moreover, Align Technology has been riding high on the back of strong growth internationally, reflecting continued strong performance in both EMEA and APAC regions. The company also reached a new benchmark of 1 million teen patients who had adopted the InvisAlign treatment.

In an encouraging development, the company recently signed a distribution agreement with Patterson Dental. Per the non-exclusive agreement, effective September 2017, Align Technology’s iTero Element intraoral scanning system will be available as part of Patterson Dental’s CAD/CAM portfolio in the United States and Canada. 

We are also upbeat about the company’sopening of a new InvisAlign Technology Treatment Planning facility in China. The company’s receipt of two U.S. patents for SmartTrack Aligner material also buoys optimism.

On the contrary, foreign exchange headwinds continue to raise concerns for Align Technology’s international operations. Also, escalating costs and expenses are weighing on its margins. Moreover, a tough competitive landscape along with other macroeconomic headwinds poses concern.

Key Picks

A few top-ranked medical stocks are Edwards Lifesciences Corporation (EW - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Amedisys, Inc. (AMED - Free Report) . Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while IDEXX Laboratories and Amedisys carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 15.4% over the last six months.

IDEXX Laboratories has a long-term expected earnings growth rate of 19.8%. The stock has gained around 41.9% over the last year.

Amedisys has a long-term expected earnings growth rate of 18.2%. The stock has gained around 8.7% over the last year.

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