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

We came across a bullish thesis on Align Technology, Inc. on Flyover Stocks’s Substack by Todd Wenning. In this article, we will summarize the bulls’ thesis on ALGN. Align Technology, Inc.’s share was trading at $131.56 as of September 12th. ALGN’s trailing and forward P/E were 22.22 and 12.24 respectively according to Yahoo Finance.

Align Technologies (ALGN) is the company behind Invisalign, a clear plastic alternative to traditional metal braces, and is headquartered in Tempe, AZ, with a market cap of $9.5 billion. Since receiving FDA clearance in 1998, Invisalign has gradually gained traction, particularly among adult users seeking a discreet solution for teeth alignment, although some orthodontists remain hesitant to adopt the technology due to training, cost, or complexity concerns.

The treatment process involves consultation, digital scanning with Align’s proprietary iTero technology, and the delivery of custom plastic aligners, with dental professionals monitoring progress and making adjustments as needed. While demand surged during COVID lockdowns in 2020–21, growth has moderated in recent years as competition intensified following the expiration of key patents in 2017, with 3M, Henry Schein, and Dentsply offering lower-priced alternatives. In 2024, approximately 65% of volume came from adult customers, whose discretionary spending makes the business more sensitive to economic trends.

Despite recent challenges, Align maintains a strong franchise with roughly 20.8 million lifetime patients, a 70% gross margin pre-charges, and over 100,000 installed iTero scanners, representing about half the global intraoral scanning market. However, clear aligner ASPs have been pressured by product mix shifts and discounting, while volume growth remains flat. Align’s economic moat now rests less on the product itself and more on its digital workflow platform, ADP tools, and scanner ecosystem, coupled with significant brand recognition—many consumers refer to all clear aligners as “Invisalign”—and high switching costs for dental offices already embedded in its system. The company’s leading innovation position continues to make it the most likely source of future breakthroughs in clear aligner technology, providing long-term upside potential despite near-term margin pressures and competitive headwinds.

Previously we covered a bullish thesis on Morningstar, Inc. (MORN) by Flyover Stocks in May 2025, which highlighted the company’s strong moat in its proprietary Data & Analytics segment, modest analyst coverage, and steady growth under visionary leadership. The stock has depreciated approximately 15.44% since our coverage. The thesis still stands, while Todd Wenning emphasizes Align Technology’s clear aligner leadership, digital workflow platform, and brand recognition as core drivers of long-term value.

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Disclosure: None.