On Jul 6, we issued an updated research report on Align Technology, Inc. ALGN. The company is riding on solid product development and continued focus on international markets. However, the current economic unrest is likely to adversely impact Align Technology’s dental procedures. The stock carries a Zacks Rank #3 (Hold), at present.
Despite all COVID-19-led deferral of procedures, in the first quarter 2020, Align Technology’s Invisalign shipment volumes improved, reflecting solid growth from non-comprehensive products, stemming from strong adoption of Invisalign Go and Invisalign Moderate systems. Within iTero, the company’s buyout of Exocad is expected to strengthen the company’s position in the CAD/CAM software market.
In May, Align Technology launched two virtual solutions that help doctors connect with existing Invisalign patients to ensure continuity of care. These are Invisalign Virtual Appointment and Invisalign Virtual Care. Both enable doctors to manage a range of practice services remotely. In February, the company launched the ClinCheck ‘In-Face’ Visualization tool for the Invisalign Go system.
Align Technology, Inc. Price and Consensus
Align Technology, Inc. price-consensus-chart | Align Technology, Inc. Quote
At present, the company is successfully rolling out the Invisalign First clear aligners for treatment of younger patients with early mixed dentition in the United States, Australia, New Zealand, Japan, and the EMEA. This apart, another product in the company’s portfolio — the Invisalign treatment with mandibular advancement — currently addresses roughly 45% of teen cases and is the only clear aligner to move the mandibular forward while straightening teeth at the same time.
In the first quarter, the company reached another major milestone with the 2-millionth Invisalign teenage patient.
On the flip side, since early March, the global healthcare industry started to postpone non-emergency and elective procedures to focus on COVID-19 treatments. This heavily weighed on the company’s first-quarter performance. Per Align Technology, the incremental impact of COVID-19 on first-quarter results was approximately 50,000 fewer cases and approximately $85 million less revenues from Invisalign and iTero products.
Align Technology has been underperforming its industryover the past six months. The stock has dipped 1.1% compared with the industry’s 0.6% fall.
Zacks Rank & Key Picks
Currently, Align Technology carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Quest Diagnostics Incorporated DGX, Laboratory Corporation of America Holdings LH or LabCorp and QIAGEN N.V. QGEN.
Quest Diagnostics’ long-term earnings growth rate is projected at 7.6%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
LabCorp’s long-term earnings growth rate is estimated at 6.1%. The company presently sports a Zacks Rank #1.
QIAGEN’s long-term earnings growth rate is estimated at 12.2%. It currently sports a Zacks Rank #1.
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