How much a stock’s price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly 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 $27,684.63, or a 2,668.46% gain, as of June 29, 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 230.89% and gold’s return of 13.18% over the same time frame.
Analysts are forecasting more upside for ALGN too.
Over the past six months, Align Technology has outperformed its industry. The company’s Invisalign Clear Aligners and iTero scanners sales were impressive in the last-reported first-quarter 2021. Impressive international performance across geographies and increased shipment volumes buoy optimism. Robust segmental results and margin expansions bode 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 optimism. Notably, Align Technology reported better-than-expected results in the first-quarter of 2021. Yet, pandemic-led continued choppy market conditions remain a concern. Foreign exchange impacts, overdependence on Invisalign and tough competition persist.
The stock has jumped 5.32% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2021; the consensus estimate has moved up as well.
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