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Align Technology (ALGN) Has Risen 72% in Last One Year, Outperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of RiverPark Advisors top stock picks. RiverPark Advisors, an investment management firm, is bullish on Align Technology Inc (NASDAQ:ALGN) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Align Technology Inc (NASDAQ:ALGN) stock. Align Technology Inc (NASDAQ:ALGN) is a manufacturer of 3D digital scanners and clear aligners used in orthodontics.

In July 2019, RiverPark Advisors had released its Q2 2019 investor letter. Align Technology Inc (NASDAQ:ALGN) stock has posted a return of 72.5% in the trailing one year period, outperforming the S&P 500 Index which returned 10.2% in the same period. This suggests that the investment firm was right in its decision. On a year-to-date basis, Align Technology Inc (NASDAQ:ALGN) stock has risen by 13.5%.

In Q2 2019 investor letter, RiverPark Advisors said the Large Growth fund posted a return of 7.4% in the second quarter of 2019, outperforming fund’s benchmark the S&P 500 Index which returned 4.3% in the same period. Let’s take a look at comments made by RiverPark Advisors about Align Technology Inc (NASDAQ:ALGN) stock in the Q2 2019 investor letter.

“For Align Technology, the story is a similar one. As we discussed in our letter from the second quarter of 2018, Align is the inventor of and the dominant player in the orthodontic clear aligner market with its Invisalign product. The roughly 1.2 million cases Align did last year – which represented the vast majority of clear aligner cases done in the world – represented only 10% of the global orthodontia market (yet was up nearly 200% from 5 years earlier). We believe that over the coming decade, the majority of global orthodontia will be done with clear aligners (and the market of orthodontia will also grow given the less invasive product and patient experience) and that Align will be the major beneficiary of this shift away from metal braces. We expect Align to grow cases another roughly 200% over the next five years resulting in a near doubling of revenue and a 250% rise in EPS.”

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In Q2 2020, the number of bullish hedge fund positions on Align Technology Inc (NASDAQ:ALGN) stock increased by about 5% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with ALGN’s growth potential. Our calculations showed that Align Technology Inc (NASDAQ:ALGN) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.