Is Align Technology Stock Underperforming the Dow?

Tempe, Arizona-based Align Technology, Inc. (ALGN) is a leader in medical devices, renowned for its Invisalign clear aligners and iTero intraoral scanners. With a market cap of $12.4 billion, Align has revolutionized orthodontics and digital dentistry with its innovative solutions.

Companies worth $10 billion or more are generally categorized as "large-cap stocks," and Align fits this description perfectly. Its valuation highlights its strong presence in the healthcare sector, driven by cutting-edge products and advancements in dental technology.

Despite its notable strengths, ALGN stock has tanked 48.6% from its 52-week high of $331.64 touched on Apr. 11, 2024. Meanwhile, ALGN has plunged 20.2% over the past three months, significantly underperforming the Dow Jones Industrial Average’s ($DOWI) 1.7% dip during the same time frame.

Align’s performance looks even grimmer over the longer term. ALGN stock has plummeted 31.6% over the past six months and 46.7% over the past 52 weeks, underperforming Dow’s marginal 89 bps uptick over the past six months and 7.9% gains over the past year.

To confirm the bearish trend, ALGN has remained consistently below its 200-day moving average since late April 2024 and 50-day moving average since early February 2025.

Align Technology’s stock prices observed a marginal uptick in the trading session after the release of its mixed Q4 results on Feb. 5. Driven by slight improvement of its Clear Aligners’ sales and a solid 14.9% year-over-year growth in Imaging Systems and CAD/CAM Services’ revenues to $200.9 million, the company's overall topline increased 4% year-over-year to $995.2 million. However, this figure fell short of the Street’s expectations by a small margin.

Meanwhile, the company observed a notable surge in SG&A expenses and incurred $33.2 million in restructuring and other charges which led to a 16% year-over-year decline in income from operations to $144.2 million. However, after adjusting for non-recurring items and accounting for the impact of share repurchases, Align’s non-GAAP EPS inched up 83 bps year-over-year to $2.44 which surpassed the consensus estimates by a thin margin.

Meanwhile, Align has notably underperformed its peer Hologic, Inc.’s (HOLX) 23.8% decline over the past six months and a 17.8% drop over the past year.

Despite its lackluster performance, analysts remain optimistic about Align’s prospects. Among the 13 analysts covering the ALGN stock, the consensus rating is a “Moderate Buy.” Its mean price target of $258.25 suggests a 51.6% upside potential from current price levels.