Is ALGN Underperforming the Healthcare Sector?

Align Technology, Inc. (ALGN) is a prominent player in the medical instruments & supplies industry, with a market cap of $12.7 billion. The company, headquartered in Tempe, Arizona, is known for designing, manufacturing, and marketing Invisalign clear aligners, Vivera retainers, and iTero intraoral scanners and services both in the United States and internationally.

As a large-cap stock, ALGN is among companies valued at $10 billion or more, underscoring its significant size and influence in the market. The company operates through two main segments, Clear Aligner and CAD/CAM Services, offering CAD/CAM digital services used in dentistry, orthodontics, and dental records storage.

Despite reaching a 52-week high of $263.24 on Jul. 18, 2024, ALGN shares have since declined by 31.6%. However, over the past three months, the stock has shown resilience, growing by 9.4%, outperforming the Health Care Select Sector SPDR Fund’s (XLV) decline of 9.3% during the same period.

Over the past year, ALGN shares have experienced a 25.7% decline, compared to XLV’s 8.7% fall. The stock is also down 13.7% year-to-date, underperforming XLV’s 3.2% decline. ALGN shares have been trading below their 200-day moving average for the past year and mostly above their 50-day moving average since late April.

Following the release of its Q1 results on Apr. 30, ALGN shares dropped by 2.5%. The company reported revenue of $979.3 million, surpassing Wall Street forecasts of $972.8 million. Its adjusted EPS of $1.52 also marginally exceeded Wall Street expectations. For Q2, ALGN anticipates revenue in the range of $1.05 billion to $1.07 billion.

In comparison, ALGN’s peer, Solventum Corporation (SOLV), has surged by 10% in 2025 and 36.2% over the past year, outperforming ALGN. Analysts covering ALGN stock have a consensus rating of “Moderate Buy,” with a mean price target of $234.25, suggesting a 30.1% upside potential from current price levels.

It’s important to note that the information provided in this article is purely for informational purposes. The author, Kritika Sarmah, does not hold any positions in the securities mentioned. For more details, the original article can be found on Barchart.com.