Align (ALGN) Rides on Growing Invisalign Sales, New Alliances
Align Technology’s ALGN robust product line, balanced growth across all channels and consistent focus on international markets to drive growth bolster our confidence in the stock. The stock carries a Zacks Rank #2 (Buy).
Align Technology sees a huge untapped potential for Invisalign Clear Aligner in the global malocclusion treatment space. Per a Grand View Research report, the global clear aligners market was valued at $4.1 billion in 2022 and is projected to witness a CAGR of 30.1% by 2030. Till the end of 2022, over 14 million people worldwide were treated with the Invisalign System. During the second quarter, in the Teen segment, which represents the largest portion of the 21 million annual orthodontic case starts, 195,000 teens and kids started treatment with Invisalign clear aligners.
Further, Align Technology is expanding its sales and marketing by reaching new countries and regions, including new areas within Africa and Latin America. Till the end of 2022, the company sold directly or through authorized distributors in more than 100 countries. With the opening of its third clear aligner fabrication facility in Wroclaw, Poland, the company now has a manufacturing facility in each of its operating territories — Americas (Mexico), APAC (China) and EMEA (Poland).
Align Technology, Inc. Price
Align Technology, Inc. price | Align Technology, Inc. Quote
Added to this, Align Technology's slew of strategic alliances looks impressive. In the Americas, Align Technology is focused on reaching young adults as well as teens and their parents through influencer and creator-centric campaigns, partnering with leading smile squad creators, including Marshall Martin, Rally Shaw and Jeremy Lin in 2023. Each of these creators shared their personal experiences with Invisalign treatment and why they chose to transform their smile with Invisalign aligners.
On the flip side, deteriorating international trade, with global inflationary pressure leading to a tough situation related to raw material and labor costs, freight charges, and rising interest rate have put the dental treatment space (which is highly-elective) in a tight spot. Added to this, Align Technology is also concerned about the military conflict between Russia and Ukraine that is likely to continue in 2023.
All these are creating significant pressure on the company’s operating profit. During the last-reported second quarter of 2023, Align Technology witnessed a 6.3% increase in SG&A expenses and a 21.3% rise in R&D expenses. The operating income in the quarter under review highlighted a decline of 8.6%. The operating margin contracted 225 bps to 17.2%.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Haemonetics HAE, Quanterix QTRX and SiBone SIBN, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics’stock has risen 11.2% in the past year. Earnings estimates for Haemoneticshave increased from $3.56 to $3.74 for 2023 and from $3.96 to $4.07 for 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have narrowed from $1.19 to 97 cents in the past 30 days. Shares of the company have increased 174.2% in the past year against the industry’s decline of 5.3%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for SiBone’s2023 loss have narrowed from $1.42 to $1.27 per share in the past 30 days. Shares of the company have increased 23.7% in the past year against the industry’s fall of 5.1%.
SIBN’s earnings beat estimates in all the trailing four quarters, the average surprise being 20.37%. In the last reported quarter, SiBone delivered an earnings surprise of 26.83%.
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
Align Technology, Inc. (ALGN) : Free Stock Analysis Report
Haemonetics Corporation (HAE) : Free Stock Analysis Report
Quanterix Corporation (QTRX) : Free Stock Analysis Report
SiBone (SIBN) : Free Stock Analysis Report
