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Reasons to Add Align Technology Stock to Your Portfolio Now

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Key Takeaways

  • Align Technology is rolling out Invisalign DSP touch-up, Palatal Expander and ART into more markets.
  • ALGN says iTero Lumina now makes up most scanners, as new tools streamline digital dentistry workflows.
  • ALGN has $1.06B cash and no debt, but expects Invisalign ASP to fall about 1-2% in 2026.

Align Technology’s (ALGN - Free Report) successful efforts to broaden the Invisalign business are poised to bring significant growth in the upcoming quarters. Also, iTero is gaining from the rapidly evolving intraoral scanning technology in the industry. A sound financial stability is beneficial for the stock as well. However, a lower average sell price (ASP) raises concerns about the company’s sales growth.

In the past year, this Zacks Rank #2 (Buy) company’s shares have lost 9.8% against 3.3% growth of the industry. In contrast, the S&P 500 composite has risen 31.3%.

The renowned medical device company has a market capitalization of $11.26 billion. ALGN projects a long-term estimated earnings growth rate of 11.2% compared with 9.9% growth of the industry. Its earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 7.8%.

Let’s delve deeper.

Upsides for ALGN Stock

Invisalign Business Expansion: Align Technology’s Invisalign portfolio offers orthodontic treatment to straighten teeth without metal braces. In recent quarters, the company has expanded Invisalign DSP touch-up cases to more countries and plans further rollouts, including in key APAC markets from 2026. 

Among the recent developments, Align Technology continues to commercialize the Invisalign Palatal Expander with steady momentum in doctor submitters and shipments. The company commercially launched the Invisalign Palatal Expander System in India, Malaysia and Turkey.  It also received the CE mark to market the Invisalign Palatal Expander system in most of Europe. The system also received regulatory approval in China. 

Invisalign System with mandibular advancement featuring occlusal blocks is designed specifically to address Class II skeletal and dental correction by simultaneously advancing the mandible while aligning the teeth. Align Technology expanded the commercial launch of this system to India, Malaysia, Philippines, Thailand, United States, Canada, Australia and New Zealand. 

Following the successful launch of its inaugural Invisalign Advanced Restorative Treatment (“ART”) pilot in EMEA, the company has expanded the program into the United States, with laboratories and doctors undergoing training across several markets.

iTero in Focus: Align Technology’s iTero intraoral scanners, alongside its Exocad CAD/CAM software, continue to gain traction globally as key tools in digital dentistry. The iTero Lumina now represents the majority of iTero scanner system mix. It continues to pilot integrations, such as x-ray diagnostics with the iTero Lumina, in select international markets. 

New innovations, including the Invisalign Outcome Simulator Pro, iTero Design Suite, and Align Oral Health Suite, are being used to enhance diagnostic, restorative and orthodontic workflows. The company remains focused on scaling adoption through clinical utility, automation, and seamless integration into restorative and ortho-restorative workflows.

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Recently, the company has introduced a set of enhancements to its iTero Digital Solutions platform — a comprehensive system that puts together intra-oral scanners, software tools and digital workflows used by dental and orthodontic practices. 

Strong Solvency: With no debt on its balance sheet, Align Technology looks quite comfortable from the liquidity point of view. The company’s cash and cash equivalents totaled $1.06 billion at the end of first-quarter 2026.

Concern for ALGN

Unfavorable Product Mix Shift Lowers ASP: Align Technology continues to experience pressure on Invisalign ASPs, particularly for comprehensive treatment options. In the fourth quarter, it experienced continued pressure on ASP, reflecting a combination of geographic mix, product mix and higher discounts. Looking ahead, the company expects ASP to reduce approximately 1-2% year over year in 2026. 

ALGN Stock Estimate Trend

The Zacks Consensus Estimate for 2026 earnings per share (EPS) has moved north 1.2% to $11.36 in the past 30 days.

The Zacks Consensus Estimate for 2026 revenues is pegged at $4.19 billion, suggesting a 3.8% rise from the year-ago reported number.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Quest Diagnostics (DGX - Free Report) and Phibro Animal Health (PAHC - Free Report) .

Globus Medical has an earnings yield of 6.1% compared to the industry’s negative 1.1% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 28.1% against the industry’s 12.5% decline over the past year.

GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Quest Diagnostics, carrying a Zacks Rank #2, has an earnings yield of 5.7% compared with the industry’s 5.6% yield. Shares of the company have risen 6.6% compared with the industry’s 0.5% growth. DGX’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.5%.

Phibro Animal Health, carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.3%. PAHC’s shares have rallied 41.8% against the industry’s 32.8% decline over the past year.

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