Latest news with #ALGN
Yahoo
2 days ago
- Business
- Yahoo
Align Technology, Inc. (ALGN): A Bull Case Theory
We came across a bullish thesis on Align Technology, Inc. (ALGN) on DIY Investor's Substack. In this article, we will summarize the bulls' thesis on ALGN. Align Technology, Inc. (ALGN)'s share was trading at $188.07 as of 10th June. ALGN's trailing and forward P/E were 32.9 and 17.7 respectively according to Yahoo Finance. A patient's smile enhanced by a dental technology device. Align Technology (ALGN), the maker of Invisalign and leader in clear aligners with over 90% market share, offers a compelling, if measured, investment case. Historically, ALGN traded at high valuations—around 32x P/E during its growth phase and peaking at 80x in 2018—reflecting both its strong brand moat and investor enthusiasm. However, despite doubling its earnings since then, the stock has corrected sharply due to overvaluation, trading now at 18x P/E with consensus expecting ~10% annual EPS growth over the next three years. Using a conservative fair value estimate of $200 based on a 10.8 EPS average and historical valuation norms, the stock appears to offer a ~20% discount from current levels near $180, suggesting ~10% annual returns if the multiple remains steady. Importantly, Align has a strong track record of meeting or beating analyst expectations, lending confidence to forward projections. Morningstar supports the undervaluation thesis, assigning a fair value of $240 and a narrow moat rating, though they acknowledge macro and competitive risks. Align's moat stems from intangible assets like SmartTrack materials and 25 years of clinical data, high switching costs for doctors, and some indirect network effects. Though it lacks a cost advantage or natural scale barriers, its capital allocation is sound: debt-light, R&D-focused, and growth-oriented. Strategic acquisitions like Exocad complement its innovation roadmap, while minimal buybacks and no dividends reflect a long-term growth posture. Overall, Align represents a high-quality business trading at a fair price, with moderate upside for investors comfortable with industry cyclicality and valuation-driven risk. Previously, we covered a bullish thesis on Procter & Gamble (PG) by Librarian Capital, emphasizing its brand dominance, resilient cash flows, and appeal as a defensive compounder amid consumer headwinds. DIY Investor's thesis on Align Technology (ALGN) contrasts this with a growth-oriented case, highlighting Invisalign's moat, earnings momentum, and undervaluation after a sharp multiple compression. Align Technology, Inc. (ALGN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held ALGN at the end of the first quarter which was 58 in the previous quarter. While we acknowledge the risk and potential of ALGN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Align Technology, Inc. (ALGN): A Bull Case Theory
We came across a bullish thesis on Align Technology, Inc. (ALGN) on DIY Investor's Substack. In this article, we will summarize the bulls' thesis on ALGN. Align Technology, Inc. (ALGN)'s share was trading at $188.07 as of 10th June. ALGN's trailing and forward P/E were 32.9 and 17.7 respectively according to Yahoo Finance. A patient's smile enhanced by a dental technology device. Align Technology (ALGN), the maker of Invisalign and leader in clear aligners with over 90% market share, offers a compelling, if measured, investment case. Historically, ALGN traded at high valuations—around 32x P/E during its growth phase and peaking at 80x in 2018—reflecting both its strong brand moat and investor enthusiasm. However, despite doubling its earnings since then, the stock has corrected sharply due to overvaluation, trading now at 18x P/E with consensus expecting ~10% annual EPS growth over the next three years. Using a conservative fair value estimate of $200 based on a 10.8 EPS average and historical valuation norms, the stock appears to offer a ~20% discount from current levels near $180, suggesting ~10% annual returns if the multiple remains steady. Importantly, Align has a strong track record of meeting or beating analyst expectations, lending confidence to forward projections. Morningstar supports the undervaluation thesis, assigning a fair value of $240 and a narrow moat rating, though they acknowledge macro and competitive risks. Align's moat stems from intangible assets like SmartTrack materials and 25 years of clinical data, high switching costs for doctors, and some indirect network effects. Though it lacks a cost advantage or natural scale barriers, its capital allocation is sound: debt-light, R&D-focused, and growth-oriented. Strategic acquisitions like Exocad complement its innovation roadmap, while minimal buybacks and no dividends reflect a long-term growth posture. Overall, Align represents a high-quality business trading at a fair price, with moderate upside for investors comfortable with industry cyclicality and valuation-driven risk. Previously, we covered a bullish thesis on Procter & Gamble (PG) by Librarian Capital, emphasizing its brand dominance, resilient cash flows, and appeal as a defensive compounder amid consumer headwinds. DIY Investor's thesis on Align Technology (ALGN) contrasts this with a growth-oriented case, highlighting Invisalign's moat, earnings momentum, and undervaluation after a sharp multiple compression. Align Technology, Inc. (ALGN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held ALGN at the end of the first quarter which was 58 in the previous quarter. While we acknowledge the risk and potential of ALGN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Yahoo
4 days ago
- Business
- Yahoo
Align Technology Stock: Is ALGN Underperforming the Healthcare Sector?
With a market cap of $12.7 billion, Tempe, Arizona-based Align Technology, Inc. (ALGN) designs, manufactures, and markets Invisalign clear aligners, Vivera retainers, and iTero intraoral scanners and services in the United States and internationally. Companies worth $10 billion or more are generally described as "large-cap stocks." ALGN falls squarely into this category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the medical instruments & supplies industry. ALGN offers CAD/CAM digital services used in dentistry, orthodontics, and dental records storage through its two operating segments, Clear Aligner and CAD/CAM Services. Is Palantir Stock Poised to Surge Amidst the Israel-Iran Conflict? 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer OpenAI CEO Sam Altman Says 'We Are Heading Towards a World Where AI Will Just Have Unbelievable Context on Your Life' Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Shares of ALGN touched their 52-week high of $263.24 on Jul. 18, 2024, and have fallen 31.6% from that peak. They have grown 9.4% over the past three months, outperforming the Health Care Select Sector SPDR Fund's (XLV) 9.3% fall over the same time frame. Shares of the company have declined 25.7% over the past 52 weeks, compared to XLV's 8.7% fall over the same time frame. Moreover, ALGN stock is down 13.7% on a YTD basis, underperforming XLV's 3.2% fall. ALGN shares have been trading below their 200-day moving average for the past year and mostly above their 50-day moving average since late April. On Apr. 30, ALGN shares declined 2.5% following the release of its Q1 results. The company's revenue came in at $979.3 million, beating Wall Street forecasts of $972.8 million. Its adjusted EPS of $1.52 surpassed Wall Street expectations marginally. ALGN expects revenue in the range of $1.05 billion to $1.07 billion for Q2. Its peer, Solventum Corporation (SOLV), has surged 10% in 2025 and 36.2% over the past year, outperforming the stock. Among the 13 analysts covering the ALGN stock, the consensus rating is a 'Moderate Buy.' Its mean price target of $234.25 suggests a 30.1% upside potential from current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
03-05-2025
- Business
- Yahoo
Here's Why Conestoga Capital Advisors Sold Align Technology (ALGN)
Conestoga Capital Advisors, an asset management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets started the year with a rally due to optimism about a strong economy and expectations of moderating inflation and lower interest rates. However, concerns over slowing earnings from major Technology companies, geopolitical tensions, and an upcoming announcement on tariffs led to a sharp decline in equities by the end of the first quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) in the first quarter compared to the Russell 2000 Growth Index's -11.12% return. The Conestoga SMid Cap Composite returned -5.73% compared to the Russell 2500 Growth Index's -10.80% return. The Conestoga Micro-Cap Composite returned -8.24% vs the Russell Microcap Growth Index's return of -17.75%. Finally, the Conestoga Mid Cap Composite returned 0.96% (net), compared to the Russell Midcap Growth Index's -7.12% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025. In its first-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Align Technology, Inc. (NASDAQ:ALGN). Align Technology, Inc. (NASDAQ:ALGN) designs, manufactures, and markets Invisalign clear aligners, and iTero intraoral scanners and services. The one-month return Align Technology, Inc. (NASDAQ:ALGN) was 14.59%, and its shares lost 38.32% of their value over the last 52 weeks. On May 1, 2025, Align Technology, Inc. (NASDAQ:ALGN) stock closed at $176.74 per share with a market capitalization of $12.939 billion. Conestoga Capital Advisors stated the following regarding Align Technology, Inc. (NASDAQ:ALGN) in its Q1 2025 investor letter: "Align Technology, Inc. (NASDAQ:ALGN) is a global medical-device company that pioneered the invisible-orthodontics market with the introduction of the Invisalign® system, a clear, removable orthodontic-treatment option for straightening teeth. We have exited our position in ALGN given that revenue growth for the business has become more challenged. While ALGN remains the market share leader, it has become increasingly difficult for the company to gain additional share as new competitors have entered the market. Therefore, growth has become more captive to consumer spending cycles. The proceeds have been re-invested in higher conviction Mid Cap holdings." An orthodontist examining a patient's teeth with a intraoral scanner, demonstrating the precision of the company's technology. Align Technology, Inc. (NASDAQ:ALGN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held Align Technology, Inc. (NASDAQ:ALGN) at the end of the fourth quarter, compared to 50 in the third quarter. While we acknowledge the potential of Align Technology, Inc. (NASDAQ:ALGN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Align Technology, Inc. (NASDAQ:ALGN) and shared the list of high-risk stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
30-04-2025
- Business
- Yahoo
Align Technology: Q1 Earnings Snapshot
TEMPE, Ariz. (AP) — TEMPE, Ariz. (AP) — Align Technology Inc. (ALGN) on Wednesday reported first-quarter profit of $93.2 million. The Tempe, Arizona-based company said it had net income of $1.27 per share. Earnings, adjusted for stock option expense and pretax expenses, were $2.13 per share. The results beat Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $1.98 per share. The maker of the Invisalign tooth-straightening system posted revenue of $979.3 million in the period, also beating Street forecasts. Six analysts surveyed by Zacks expected $972.8 million. For the current quarter ending in June, Align Technology said it expects revenue in the range of $1.05 billion to $1.07 billion. Align Technology shares have fallen 17% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $173.30, a decline of 39% in the last 12 months. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on ALGN at Sign in to access your portfolio
