Align Technology Invisalign Sales Strong, Currency Woes Stay
On May 5, we issued an updated research report on Align Technology ALGN, which manufactures and markets a system of clear aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services used in dentistry, orthodontics, and dental records storage. The stock currently has a Zacks Rank #1 (Strong Buy).
In the last three months, Align Technologyhas been trading above the Zacks categorized Medical – Dental-Supplies Market industry. The company also registered strong earnings, revenues and gross margin in first-quarter 2017, exceeding its own guidance. We are impressed with the company’s balanced growth across all segments. The stock gained 43.74% in the last three months, ahead of the broader industry’s gain of 7.26%.
We are encouraged to note that Align Technology maintained strong Invisalign volume growth across its entire customer base. Geographically, the company was successful in delivering growth in North America as well as overseas.
During the quarter, Align Technologyadded 3,260 new Invisalign doctors worldwide. In order to expand the product portfolio, management launched Invisalign Lite in North America post its introduction in the EMEA. Also, Align Technology’s strong cash balance enables it to adopt attractive share repurchase programs and in turn provide solid returns to investors.
On the flip side, foreign exchange headwinds continue to remain a major dampener for the company’s international performance. Also, over the last three months, a comparative study of Align Technology’s forward P/E (F12M basis) multiple reflected that the stock has been quite overvalued.
Zacks Rank & Other Key Picks
Other top-ranked medical stocks include Hologic, Inc. HOLX, Baxter International Inc. BAX and Progenics Pharmaceuticals, Inc. PGNX. Hologic sports a Zacks Rank 1 (Strong Buy), while Baxter International and Progenics Pharmaceuticals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic gained 32.91% in the last one year, in comparison to the S&P 500’s 16.43%. The company has a stellar four-quarter average earnings surprise of over 4.16%.
Baxter International rose around 23.92% in the last one year, in comparison to the S&P 500. It has a four-quarter average earnings surprise of 17.14%.
Progenics Pharmaceuticals gained 26.08% in the past one year, better than the S&P 500 mark. It has a four-quarter average earnings surprise of 10.01%.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Hologic, Inc. (HOLX): Free Stock Analysis Report
Baxter International Inc. (BAX): Free Stock Analysis Report
Progenics Pharmaceuticals Inc. (PGNX): Free Stock Analysis Report
Align Technology, Inc. (ALGN): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
