Align Rides on Volume Expansion Amid Poor Shipment Scenario
On Oct 11, we issued an updated research report on Align Technology, Inc. ALGN. The company is riding on strong product development and a consistent focus on international markets. However, the current economic unrest persists to cast a negative impact on Align Technology’s dental procedures. The stock carries a Zacks Rank #3 (Hold).
Align Technology's steady momentum in Invisalign volumes across all geographies and solid worldwide volume growth for teenage patient cases buoy optimism on the stock. A solid performance in the EMEA region and the APAC markets is also a plus.
Maintaining its last-year performance, Align Technology continued with its winning streak of delivering a sturdy Invisalign Technology volume expansion across the company’s entire customer base. Geographically, the company is witnessing strength in North America and the overseas.
In the last reported quarter, in North America, the company saw a steady widening GP Dentist customer base along with a sustained uptrend in Invisalign utilization by orthodontists. Internationally, we are encouraged by a solid performance in the EMEA and the Asia Pacific (APAC) markets. Notably, the EMEA market is the second-largest space of growth for Align Technology.
Align Technology, Inc. Price
In terms of portfolio enhancement, in September 2019, Align Technology announced the commercial availability of the iTero Element 2 scanner in China. Earlier in March, the company launched a new online tool called SmileView.
Previously, Align Technology launched its latest digital treatment planning facility and education center in Madrid, Spain. The company also introduced the Invisalign First clear aligners for treatment of younger patients with early mixed dentition successively in the United States, Australia, New Zealand, Japan and the EMEA region starting July 2018.
On the flip side, Align Technology registered a dull Invisalign case shipment in China, which dragged down the entire case shipment in the second quarter of 2019. Per the company, this was due to a tough consumer environment in China. This apart, there was slower growth in young adult cases noticed in North America. Also, looking at the company’s third-quarter guidance, we expect this lackluster trend to linger over the period.
Shares of the company have underperformed its industry over the past three months. The stock has plunged 29.6%, wider than the industry's 19.2% fall.
A few better-ranked stocks in the broader medical space are Stryker SYK, Medtronic MDT and Hill-Rom Holdings HRC, each carrying a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker’s long-term earnings growth rate is expected to be 10.04%.
Medtronic’s long-term earnings growth rate is projected at 7.32%.
Hill-Rom Holdings’ long-term earnings growth rate is anticipated to be 10.01%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Click to get this free report
Stryker Corporation (SYK): Free Stock Analysis Report
Medtronic PLC (MDT): Free Stock Analysis Report
Hill-Rom Holdings, Inc. (HRC): Free Stock Analysis Report
Align Technology, Inc. (ALGN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.