We recently upgraded
) to Neutral based on its encouraging fourth-quarter 2012 results
and huge opportunities in the malocclusion market. Banking on its
core product Invisalign, the company witnessed balanced sales
growth across all its channels. The stock currently carries a
Zacks Rank #3 (Hold).
Why the Upgrade?
Align exited 2012 on an encouraging note with its
fourth-quarter results sailing past the expectations. Align's
Invisalign Clear Aligner has helped the company establish itself
as a strong player in the malocclusion market.
Over the past few quarters, sales have increased consistently
due to 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.
According to the company's recent study, over 99% of the Ortho
and GP dentists in the U.S. are aware of G4. Moreover, we are
encouraged with the recent launch of the next generation liner
material SmartTrack for Invisalign Clear Aligner and feature
enhancements of Invisalign G4, particularly in Europe. These
features are working as major catalysts in strengthening the
company's foothold in the huge teenage orthodontic market. Rising
earnings estimates as well as a product with great appeal and
untapped potential in the malocclusion market make us optimistic
Other Stocks to Consider
While we prefer to remain on the sidelines on Align
Technology, other medical device stocks worth a look are
Medical Action Industries Inc.
Given Imaging Ltd.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
ALIGN TECH INC (ALGN): Free Stock Analysis
GIVEN IMAGING (GIVN): Free Stock Analysis
MEDICAL ACTION (MDCI): Free Stock Analysis
RESMED INC (RMD): Free Stock Analysis Report
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