On Dec 28, we issued an updated research report on Align Technology, Inc. (NASDAQ:ALGN) . The stock carries a Zacks Rank #3 (Hold).
Notably, Align Technology manufactures and markets a system of clear aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and manufacturing) digital services used in dentistry, orthodontics and dental records storage.
Shares of the company have been trading above its industry over the last 30 days. The stock has rallied 26% compared with the industry’s 0.9% growth during the period. Further good news is that the company delivered an encouraging performance in the third quarter of 2017, posting better-than-expected earnings and revenues.
We are also impressed by the company’s solid InvisAlign Technology prospects and growth in North America as well as internationally. The company’s receipt of two U.S. patents for SmartTrack Aligner material also buoys optimism.
Moreover, Align Technology has been logging strong international sales, especially in the EMEA and APAC regions. Last quarter marked another milestone for the company wherein China emerged the second largest market globally with the United States leading the bandwagon.
The company has also witnessed balanced sales growth across all its channels in the recent past, primarily driven by high InvisAlign Technology case volumes. A solid performance in the summer too drove Invisalign growth in the global teen market.
Another positive aspect is that the company has recently signed a distribution agreement with Patterson Dental. Per this non-exclusive deal, effective from September onward, Align Technology’s iTero Element intraoral scanning system will be available as part of Patterson Dental’s CAD/CAM portfolio in the United States and Canada.
On the flip side, an adverse foreign exchange translation continues to raise concerns for Align Technology’s international operations. Also, escalating costs and expenses are weighing on the company’s margins. Moreover, a tough competitive landscape and other macroeconomic headwinds pose a threat.
Key Picks
Some better-ranked stocks from the same space are Masimo Corporation (NASDAQ:MASI) , Tactile Systems Technology (NASDAQ:TCMD) and Integer Holdings Corporation (NYSE:ITGR) , each sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Masimo has an expected growth rate of 43.40% this year. The stock has increased 28.3%, above the broader industry’s gain of 22.1% over the last year.
Tactile Systems has an estimated current annual growth rate of 123.33. The stock has soared 80.5%, above the broader industry’s rise over a year.
Integer Holdings has a projected growth rate of 85.37% in the next quarter. The stock has surged 51.3%, outperforming the broader industry’s increase over a year’s time.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Masimo Corporation (MASI): Free Stock Analysis Report
Integer Holdings Corporation (ITGR): Free Stock Analysis Report
Tactile Systems Technology, Inc. (TCMD): Free Stock Analysis Report
Align Technology, Inc. (ALGN): Free Stock Analysis Report
Original post
Zacks Investment Research