15 Small-Cap Healthcare Stocks Hedge Funds Are Buying

5. Align Technology, Inc. (NASDAQ:ALGN)

No. of Hedge Fund Holders: 58

Market Capitalization: $13.97 Billion

Analyst Upside: 28.72%

Align Technology, Inc. (NASDAQ:ALGN) is a global medical device company. It designs, manufactures, and sells the Invisalign system of clear aligners, iTero intraoral scanners, Vivera retainers, and services.

On May 1, Jason Bednar from Piper Sandler increased the price target on ALGN from $235 to $250, reiterating an Overweight rating on the shares. Bednar has raised the price target following increased confidence in its recent market performance and long-term prospects. The company’s growth in the Teen and Growing Kids segment and global expansion are two of the key catalysts for future growth. The Teen segment saw a 13.3% year-over-year growth in Invisalign Clear Aligner treatments.

Align Technology, Inc. (NASDAQ:ALGN) revenue and earnings for Q1 2025 surpassed the analyst estimates. The revenue came in at $979.26 million, beating estimates by $3.45 million. The adjusted EPS was around $2.13 per share, exceeding consensus estimates by $0.14. The strong financial results were driven by Clear Aligner volume increase, with notable growth in the Asia Pacific, EMEA regions, and North America. The company launched new products, including the Invisalign Palate Expander system and the iTero Lumina scanner with restorative software. These new product launches will potentially drive future growth.