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Align Technology, Inc. (ALGN), with a market cap of $19 billion, operates in the medical devices industry, specializing in orthodontic and dental technology. Based in Tempe, Arizona, the company designs, manufactures, and markets Invisalign clear aligners and iTero intraoral scanners, offering solutions for orthodontic treatment and digital dental services.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Align Technology fits this criterion perfectly. Align Technology's uniqueness lies in its integration of advanced 3D digital scanning and custom aligner manufacturing, providing a seamless, tech-driven approach to orthodontic treatment.
However, Align Technology has fallen 24.6% from its 52-week high of $335.40 in March. Despite this recent pullback, shares of ALGN have risen 4.2% over the past three months, in line with the broader S&P 500 Index's ($SPX) performance during the same time frame.
However, in the longer term, ALGN is down 7.7% on a YTD basis, lagging behind SPX's 19.6% gains. Also, ALGN stock has declined 18.3% over the past 52 weeks, significantly underperforming SPX's 29.5% returns over the same time frame.
ALGN stock has been trading below both its 50-day and 200-day moving averages since May, with few recent fluctuations indicating a bearish price trend.
Despite reporting better-than-expected Q2 adjusted EPS of $2.41 on Jul. 24, Align Technology's shares tumbled 7.7% the following day because its revenue of $1.03 billion missed the estimate and a downward revision in its full-year revenue guidance to 4%-6% growth. Additionally, concerns over declining average selling prices (ASPs) for Clear Aligners and a contraction in gross margins heightened investor apprehension. The postponement of the iTero Lumina launch with restorative capabilities also contributed to the negative market reaction.
Nevertheless, the stock's rival, DENTSPLY SIRONA Inc. (XRAY), has seen a more significant drop, with its stock down 25.3% over the past 52 weeks and 26.1% on a YTD basis.
Despite ALGN's weak performance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from the 11 analysts in coverage, and it is currently trading below the mean price target of $288.36.
On the date of publication, Sohini Mondal 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. For more information please view the Barchart Disclosure Policy here.
