Align Technology, Inc. (ALGN): A Bull Case Theory

We came across a bullish thesis on Align Technology, Inc. on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on ALGN. Align Technology, Inc.’s share was trading at $204.13 as of July 23^rd. ALGN’s trailing and forward P/E were 37.11 and 20.00, respectively according to Yahoo Finance.

Align Technology (ALGN), a leader in clear aligners through its Invisalign brand, represents a high-quality investment acquired at an attractive valuation amid market dislocation. The position was initiated at $150 per share on April 4, shortly after Liberation Day tariffs triggered a broad equity sell-off, creating a compelling entry point for a business that had traded above $300 as recently as April 2024 and over $700 during its COVID-era hyper-growth in 2021.

Once a market favorite, ALGN saw its growth decelerate following pandemic-driven demand pull-forward and a more challenging consumer financing environment, which weighed on sales. Near-term sentiment remains pressured by emerging low-end competitors and softer consumer confidence amid rising recession risks.

However, Invisalign’s premium positioning and entrenched trust among orthodontists provide a defensible moat, with price-focused entrants posing limited structural threat. Longer term, clear aligners remain underpenetrated, representing just about 20% of more than 20 million new orthodontic cases annually, leaving substantial room for continued share gains as the global orthodontics market evolves.

The recent pause in reciprocal tariffs catalyzed a sharp rebound in ALGN shares, validating the thesis that market concerns were overly discounted. While the team does not expect a near-term inflection in growth, ALGN’s durable brand equity, leadership position, and favorable long-term adoption trends support the view that the company can compound value meaningfully from current levels. The dislocation provided a rare opportunity to acquire a market leader with a robust competitive moat and long-term growth runway at a valuation that offers a compelling risk/reward profile.

Previously, we covered a bullish thesis on Align Technology, Inc. (ALGN) by DIY Investor in June 2025, highlighting Invisalign’s brand moat, earnings momentum, and undervaluation after multiple compressions. The stock has appreciated about 8% since our coverage, as market concerns eased. The thesis remains intact given ALGN’s leadership and underpenetrated market. Stock Analysis Compilation shares a similar view but emphasizes valuation reset post-volatility.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None.