On Jul 4, 2014, we issued an updated research report on
Align Technology Inc.
). Align exited first-quarter 2014 on an encouraging note with both
the top and bottom line sailing past the Zacks Consensus Estimate.
However, we remain worried about the current economic uncertainty
which continues to cast a negative impact on dental procedures.
Banking on its core product - Invisalign Clear Aligner - Align
has established itself as a strong player in the malocclusion
market. Over the past few quarters, sales have increased
consistently riding on the strength of this product. Moreover,
several features have been introduced across the Invisalign system,
designed to address some of the most significant treatment
challenges encountered by doctors.
The company's Invisalign G3 and G4 are working successfully for
its class II and class III patients. Moreover, in Feb 2014, Align
launched Invisalign G5 innovations which are specifically used to
treat deep bite malocclusion.
According to the company, deep bite is a very common functional
orthodontic problem that is present in almost half of the existing
orthodontic case starts in North America and approximately a third
of the case starts in Asia. With the estimation that deep bite
manifests itself in approximately 30% to 40% of the orthodontic
cases treated worldwide; we expect greater adoptability of this
product down the line.
In the first quarter, international volume increased 31%,
reflecting strong growth in both EMEA and Asia Pacific driven by
go-to-market and sales coverage investments, improving clinical
education, and support and enthusiasm around new products like
The company believes that the new features and functionality
delivered with Invisalign G4 and G5 are more effective outside
North America, especially in Asia, due to the higher complexity of
cases observed among the Asian population.We are also encouraged
with the company's new product development.
However, the general slowdown in the U.S. and certain
international economiescontinues to weigh on consumer spending and
affect Align's business fundamentals.Competitive landscape also
The stock currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some better-ranked stocks in the similar sector that are worth a
Becton, Dickinson and Co.
The Cooper Companies Inc.
). All the three stocks carry a Zacks Rank #2 (Buy).
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ALIGN TECH INC (ALGN): Free Stock Analysis
BECTON DICKINSO (BDX): Free Stock Analysis
AMERISOURCEBRGN (ABC): Free Stock Analysis
COOPER COS (COO): Free Stock Analysis Report
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