U.S. markets closed
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • Dow 30

    30,932.37
    -469.64 (-1.50%)
     
  • Nasdaq

    13,192.35
    +72.92 (+0.56%)
     
  • Russell 2000

    2,201.05
    +0.88 (+0.04%)
     
  • Crude Oil

    61.66
    -1.87 (-2.94%)
     
  • Gold

    1,733.00
    -42.40 (-2.39%)
     
  • Silver

    26.70
    -0.98 (-3.56%)
     
  • EUR/USD

    1.2088
    -0.0099 (-0.81%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • GBP/USD

    1.3922
    -0.0091 (-0.65%)
     
  • USD/JPY

    106.5500
    +0.3200 (+0.30%)
     
  • BTC-USD

    44,749.34
    -2,176.12 (-4.64%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     

Align (ALGN) Rides on Robust Invisalign Sales Amid Coronavirus

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

On Dec 28, 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 global economic unrest casts a negative impact on Align Technology’s dental procedures. The stock carries a Zacks Rank #3 (Hold).

Align Technology has been outperforming its industry over the past six months. The stock has surged 108.3% compared with the industry's 21.4% rise.

Align Technology exited the third quarter of 2020 with better-than-expected results despite the challenging business environment. The company saw significantly higher sales of Invisalign clear aligners and iTero scanners amid the pandemic. Impressive international performance across geographies and increased shipment volumes buoy optimism on the stock.

Align Technology, Inc. Price

Align Technology, Inc. Price
Align Technology, Inc. Price

Align Technology, Inc. price | Align Technology, Inc. Quote

Align’ Technology’s Invisalign clear aligner has been receiving positive feedback and holds huge long-term market potential. The recent dull performance of this business was due to the pandemic-led market crisis and is not expected to linger. We are in fact impressed that even amid such a situation, the company trained a significantly higher number of doctors through virtual courses, summits and forums.

Through the third quarter, Align Technology witnessed recovery in its orthodontic channel with an uptick in Invisalign comprehensive treatments in the teens and pre-teen segment across most regions, with pronounced growth in APAC in the teen segment.

Further, utilization improved during the quarter, with teen shipments witnessing faster recovery in North America. Dental Support Organization (“DSO”) utilization also increased during the quarter and continues to be a strong driven by Heartland Dental and Aspen Dental Management, Inc.

In terms of product launch, in September, the company added the Steraligner aligner cleaning system to the Invisalign Doctor Site web store and InvisalignAccessories.com.
The company recently announced the global availability of its next generation proprietary treatment-planning software, ClinCheck Pro 6.0.

On the flip side, the unabated spread of the pandemic has jeopardized Align Technology’s business outlook for the fourth quarter. Uncertainties regarding the duration and impact of the coronavirus pandemic on the company’s overall business have compelled it to refrain from providing any guidance for the fourth quarter of 2020.

Foreign exchange impacts, overdependence on Invisalign and tough competition are other headwinds.

This apart, slower growth in young adult cases in North America is concerning.

Key Picks

A few better-ranked stocks from the broader medical space include Addus Homecare Corporation ADUS, Chemed Corporation CHE, and DaVita Inc. DVA, each carrying a Zacks Rank #2 (Buy). You can see the complete list of Zacks #1 Rank (Strong Buy) stocks here.

Addus Homecare has a projected long-term growth rate of 15%.

Chemed has a projected long-term growth rate of 10.1%.

DaVita has a projected long-term growth rate of 18.3%.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>


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
 
DaVita Inc. (DVA) : Free Stock Analysis Report
 
Align Technology, Inc. (ALGN) : Free Stock Analysis Report
 
Addus HomeCare Corporation (ADUS) : Free Stock Analysis Report
 
Chemed Corporation (CHE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research