Tempe, Arizona-based Align Technology, Inc. (ALGN) designs, manufactures, and markets Invisalign clear aligners, and iTero intraoral scanners and services for orthodontists and general practitioner dentists. Valued at $11.7 billion by market cap, the company also manufactures software for dental laboratories and dental practitioners.
Shares of this leading manufacturer of clear aligners have underperformed the broader market over the past year. ALGN has declined 4.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 29.6%. In 2026, ALGN’s stock rose 4.7%, compared to the SPX’s 9.8% gains on a YTD basis.
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Narrowing the focus, ALGN’s underperformance is also apparent compared to the SPDR S&P Health Care Equipment ETF (XHE). The exchange-traded fund has gained about 1.5% over the past year. However, the stock’s returns on a YTD basis outshine the ETF’s 8% losses over the same time frame.
www.barchart.com On Apr. 29, ALGN shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $2.58 topped Wall Street expectations of $2.26. The company’s revenue was $1.04 billion, surpassing Wall Street forecasts of $1.02 billion. For Q2, ALGN expects revenue in the range of $1 billion to $1.1 billion.
For the current fiscal year, ending in December, analysts expect ALGN’s EPS to grow 12.1% to $9.48 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 15 analysts covering ALGN stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, five “Holds,” and one “Moderate Sell.”
www.barchart.com This configuration is more bullish than three months ago, with eight analysts suggesting a “Strong Buy.”
On May 25, Stifel Financial Corp. (SF) analyst Jonathan Block maintained a “Buy” rating on ALGN and set a price target of $210, implying a potential upside of 28.4% from current levels.
The mean price target of $208.23 represents a 27.3% premium to ALGN’s current price levels. The Street-high price target of $240 suggests a notable upside potential of 46.7%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.