Align Technology’s (NASDAQ: algn) most recent quarterly results were spectacular. Indeed, when profits start to roll in the stock price rises. Not to mention, profits are up 50% year-over-year.
But, Wall Street analysts fail to see the potential of Invisalign. At first glance, invisible orthodontics seem boring. However, behind the scenes Align has managed to build massive scale in state of the art 3D printing technology.
Furthermore, Align has strategically built up its patent inventory. Granted, this should give Align a big advantage over it’s competitors.
In other words, the digital transformation of dentistry is underway. Align is replacing ugly metal braces. The days of “head gear” are gone for good. Clear plastic aligners are the future. And Align is the first company to take advantage of this opportunity.
Based on a Forbes article, Align’s 3D printers produce around 220,000 custom clear aligners every day. To be clear, Align might be the first company to mass manufacture individual products and eliminate inventories. This is no small feat.
As a result, investors are just beginning to catch on. Align’s share price has skyrocketed in recent months. So, what should investors do? Buy now? Or, wait for a pull back?
To be sure, the profit potential is unimaginable. So, if Align keeps raking in profits, the chance to buy on weakness will be limited. Although this may be true, the stock looks cheap at current levels.
Conclusion
All things considered, Wall Street loves companies that are able to grow earnings. In fact, earnings are the main driver of a stock price. And Align is serving up spectacular earnings. Plus, competitors are way behind in the invisible orthodontics race. Another reason Align’s future earnings are set to shock Wall Street.
Are you looking for another company with impressive earnings? If so, check out MongoDB.
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