How much a stock’s price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you’d invested in Align Technology (ALGN) ten years ago? It may not have been easy to hold on to ALGN for all that time, but if you did, how much would your investment be worth today?
Align Technology’s Business In-Depth
With that in mind, let’s take a look at Align Technology’s main business drivers.
Align Technology, based in California, manufactures and markets a system of clear aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services used in dentistry, orthodontics, and dental records storage. The clear aligner system corrects malocclusion using nearly invisible and removable appliances that gently move the tooth to a desired final position.
Align presently has 2 operating segments, Clear Aligner (85.01% of total revenues in 2020), known as the Invisalign system and the CAD/CAM Services (14.98% of total revenues in 2020) which is known as the iTero intra-oral scanners and OrthoCAD services (which we earlier referred to as Scanner and CAD/CAM Services). In 2020, the Clear Aligner segment registered revenue growth of 3.7 % from 2019, while the latter registered revenue decline of 2.8% from 2019.
Invisalign System – An exclusive method to treat malocclusion based on a series of doctor-prescribed, custom manufactured, clear plastic removable orthodontic aligners. The Invisalign system offers a range of treatment options, specialized services, and proprietary software for treatment visualization and comprises several phases.
The Clear Aligner products are Invisalign Full, Teen and Assist (Full Products), Express/Lite (Express Products), Vivera retainers, along with training and ancillary products for treating malocclusion.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Align Technology ten years ago, you’re likely feeling pretty good about your investment today.
A $1000 investment made in June 2011 would be worth $26,149.08, or a 2,514.91% gain, as of June 11, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500’s rally of 233.54% and gold’s return of 19.10% over the same time frame.
Going forward, analysts are expecting more upside for ALGN.
Align Technology exited the first quarter of 2021 with better-than-expected results. Invisalign Clear Aligners and iTero scanners sales were impressive despite the pandemic. Impressive international performance across geographies and increased shipment volumes buoy optimism. Robust segmental results and margin expansions bode well. Continued adoption of the company’s digital platform augers well. Wider availability of the My Invisalign app instills our confidence. The company’s focus on expanding its global operations, and rising orthodontic adoption and utilization of Invisalign Treatment raise our optimism. Align Technology has outperformed its industry over the past six months. Yet, pandemic-led continued choppy market conditions remain a concern. Foreign exchange impacts, overdependence on Invisalign and tough competition persist.
Over the past four weeks, shares have rallied 10.57%, and there have been 7 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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