ALGN Stock Breaks Out As A New Trend Drives Digital Orthodontics

Align Technology Inc

Align Technology Inc

ALGN

$10.40



1.69%



0%

IBD Stock Analysis

• Shares briefly break out of a cup-with-handle with buy point of 629.45
• Stock has a nearly perfect Composite Rating of 98 out of a possible 99
• Relative Strength Rating is 89 out of 99, indicating a possible big run

Composite Rating

Industry Group Ranking

Emerging Pattern

Cup with Handle

* Not real-time data. All data shown was captured at
12:14PM EDT on
07/09/2021.

Align Technology (ALGN) is the IBD Stock Of The Day as the digital orthodontics revolution drives ALGN stock into a breakout.

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The company makes Invisalign, a clear plastic alternative to metal braces. Last year, more than 30,000 patients enrolled in virtual care for their Invisalign systems, the company told Investor’s Business Daily in a recent email. Align says the Covid pandemic forced dentists to find workarounds to frequent in-office visits.

“Invisalign providers are using our virtual tools to minimize in-office appointments and deliver doctor-directed, personalized treatment that meets the needs of the moment,” the company said. “And that will re-share the future of treatment.”

Investors in ALGN stock are taking notice. Shares broke out of a cup-with-handle base on Friday, topping a buy point at 629.45, according to MarketSmith.com. The move occurred in decent volume.

But shares didn’t hold above that buy point by session’s end. The stock gained 1.7% to close at 627.19 on the stock market today.

ALGN Stock Breaks Out

Analysts say demand for the Invisalign systems is just a hair below pre-pandemic levels.

Dentists use three-dimensional scanners to capture images of patients’ teeth. Align uses those images to make a series of progressive aligners. Those aligners put pressure on specific spots in the teeth. That differs from traditional metal braces, which pull indiscriminately on all teeth.

Align is soon to report its second-quarter earnings. On average, ALGN stock analysts call for adjusted earnings of $2.54 per share on $938 million in sales. Under that model, earnings would swing from a year-earlier loss, according to FactSet. Sales would skyrocket 166.5%.

The company says the pandemic didn’t change its course. Align completed its acquisition of Exocad, a company that uses software to design and make precision tools for dentistry. The company says it also invested in branding.

“We didn’t halt plans or change our strategy for continued growth,” Align said.

Highly Rated Medical Stock

On a year-to-date basis, ALGN stock has climbed 19.5% as of midday Friday.

Shares have a nearly perfect Composite Rating of 98 out of a best-possible 99. This means ALGN stock ranks in the top 2% of all stocks in terms of key fundamental and technical growth measures.

ALGN stock also has a strong Relative Strength Rating of 89. The RS Rating tracks a stock’s 12-month performance. Leading stocks tend to have RS Ratings of at least 80 before a big run, according to IBD Digital.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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