#7 - Align Technology (NASDAQ:ALGN)
Align Technology (NASDAQ: ALGN) - Parents with kids may not know the name Align Technology, but many of them are familiar with their Invisalign dental braces. The clear braces market is exploding in the United States. This has caused investors to frown on ALGN’s stock. More competitors have entered the field, the most notable of which is the Smile Direct Club (SDC) which delivers “direct to home” products. ALGN is also facing a very real challenge of expiring patents. While these issues pose some challenges for ALGN, the company is still well positioned for growth. One of the reasons is that the Invisalign brand is still the leader in the business, a number that only reflects the number of customers who are receiving orthodontic care. The company is hoping to capitalize on the larger market of customers who may need some form of orthodontic care but do not currently receive it. As proof of that, the company is projecting 13% annual growth in the invisible orthodontics market through 2022, and sales growth of 23% in 2019. And to hedge their bets, the company owns a 19% stake in SDC.
About Align Technology
Align Technology, Inc designs, manufactures, and markets Invisalign clear aligners, and iTero intraoral scanners and services for orthodontists and general practitioner dentists in the United States, Switzerland, and internationally. The company's Clear Aligner segment offers comprehensive products, including Invisalign comprehensive package that addresses the orthodontic needs of younger patients, such as mandibular advancement, compliance indicators, and compensation for tooth eruption; and Invisalign First Phase I and Invisalign First Comprehensive Phase 2 package for younger patients generally between the ages of six and ten years, which is a mixture of primary/baby and permanent teeth.
Read More - Current Price
- $225.89
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $276.38 (22.3% Upside)
The story of 2019 is just beginning to be written, but the message is far from clear. Unemployment is low, but there remains concern about the direction of interest rates. Gridlock in the U.S. Government is welcome for advocates of a smaller government, but the looming specter of another potential government shutdown is hurting consumer confidence. This uncertainty is being reflected in the market. But rather than staying away from the market, now can be the perfect time to look at some well-established names.
Investing in blue-chip stocks is considered to be among the safest options for investors. Blue-chip companies are known for having large market caps strong financial positions, and reputable brand names that have a large following in the general public. An additional benefit for investors is that many blue-chip companies have a proven track record of delivering dividends to their shareholders. Does this mean that blue-chip stocks will never decline? Of course not. But because of their size and strength, blue-chip companies are usually well positioned to weather the storm that comes from a volatile investment environment. Historically, blue-chip stocks take smaller losses and thus typically recover more rapidly.
More Investing Slideshows:
