We recently published a list of Billionaire Ken Griffin’s 10 Midcap Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Align Technology, Inc. (NASDAQ:ALGN) stands against Billionaire Ken Griffin’s other midcap stock picks with huge upside potential.
Ken Griffin, the founder of Citadel, is an influential albeit controversial figure in the investment industry. Ken Griffin tasted early success while trading during his college days, and it is safe to say that he has never looked back since. Despite huge setbacks during the financial crisis of 2008, he used his skills and determination to make a comeback where many others would have simply closed the fund and moved on.
The billionaire investor currently manages assets worth around $65 billion across his funds. Owing to its large size and track record of success, Ken Griffin’s stock moves often make it to the news and are closely followed by investors. We decided to do the same, focusing on Mid-cap stocks that still had the potential to turn into established giants tomorrow.
To come up with the list of billionaire Ken Griffin’s 10 midcap stock picks with huge upside potential, we looked at his latest 13F holdings and, among his significant holdings, only considered stocks between $10 billion and $40 billion in market cap. We then looked at the average analyst price target on Wall Street and ranked the stocks according to their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
An orthodontist examining a patient’s teeth with a intraoral scanner, demonstrating the precision of the company’s technology.
Align Technology, Inc. (NASDAQ:ALGN)
Stock Upside Potential: 36.8%
Citadel Investment Group’s Stake: $364,856,219
Align Technology, Inc. (NASDAQ:ALGN) operates as a manufacturer, designer, and marketer of Vivera retainers, Invisalign clear aligners, and iTero intraoral scanners and services. The company generates its revenues through Clear Aligner and Imaging Systems, and CAD/CAM Services segments.
Since its 2023 highs, Align’s stock has significantly declined. It fell by over 50% in the last year alone. The reason behind the massive drop in share price was missed EPS and revenue targets. In the last 12 quarters, the company has missed revenue in seven quarters and EPS in five quarters. Resultantly, the stock hasn’t gone anywhere.
According to the provided fiscal 2025 outlook, Align Technology (NASDAQ:ALGN) expects revenues between $1.05 billion to $1.07 billion. For 2025, Clear Aligner volume growth is anticipated to be mid-single digits YoY. However, due to growth in emerging markets and product mix shift, ASPs are projected to decrease. Management predicts the GAAP operating margin to increase by approximately 2 percentage points compared to the previous year. Due to the company’s long history and market leadership, investors see the current stock price drop as an attractive buying opportunity, though concerns about the management’s ability to deliver remain.
Overall, ALGN ranks 6th on our list of Billionaire Ken Griffin’s midcap stock picks with huge upside potential. While we acknowledge the potential of ALGN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ALGN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
