Align Technology: A Stock To Sink Your Teeth Into

Medical oral care specialist Align Technology (ALGN - Get Rating) is known for its diverse portfolio of dental scanners and clear aligner orthodontics. The stock has maintained its momentum over the past year, despite the pandemic, as the market expected regarding a quick recovery of the medical and orthodontics industry. ALGN has gained 123% over the past twelve months, and 15% year-to-date.

Most elective surgeries and non-emergency checkups were postponed during the first half of 2020 because of social distancing restrictions and fear of contracting the virus. However, the mass vaccination drive and the COVID-19 infection rate dropping to the lowest level in months has driven people to reschedule their previously cancelled appointments. 

ALGN – Dental health device manufacturer Align Technology (ALGN) has been on a growth streak over the past year and its stock delivered triple-digit returns. The company demonstrated business resilience during the pandemic, and is currently surging as people return to the dentist and orthodontist. With solid fundamentals and financial strength, ALGN is expected to maintain its growth trajectory in the near term.

The rising demand for orthodontics medical services have been driving ALGN’s growth over the past couple of months. Factors that should accelerate ALGN’s rebound are:

Record Quarterly Results

ALGN’s revenues have increased 28.4% year-over-year to a record of $834.50 million in the fourth quarter ended December 31, 2020. This can be attributed to a 28.9% rise in revenues generated by the Aligner segment, and 26% rise in revenues from the Imaging systems and CAD/CAM services segment. Clear aligner volume rose 37.3% from the same period last year to 568,000 cases. Non-GAAP net income has risen 31.1% from the prior-year quarter to $158.99 million, while EPS increased 30.7% from the year-ago value to $2.

Following the release of the quarterly financial results on February 3, 2021, ALGN hit its all time high of $634.46 when the markets opened on February 4.

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