Jim Cramer’s New Picks: 5 Stocks to Buy

This article presents an overview of Jim Cramer’s New Picks: 5 Stocks to Buy. For a detailed overview of such stocks, read our article, Jim Cramer’s New Picks: 10 Stocks to Buy.

5. Align Technology, Inc (NASDAQ:ALGN)

Number of Hedge Fund Investors: 50

Align Technology, Inc (NASDAQ:ALGN) makes 3D digital scanners and Invisalign clear aligners used in orthodontics. Jim Cramer, when asked about Align Technology, Inc (NASDAQ:ALGN) in one of his recent programs, said that he likes Align Technology, Inc (NASDAQ:ALGN).

“I think Align is pretty good. It has come down a 100 points, it’s not bad.”

Of the 933 funds in Insider Monkey’s database, 50 hedge funds reported owning stakes in Align Technology, Inc (NASDAQ:ALGN), up from 43 funds in the previous quarter. The biggest stake in Align Technology, Inc (NASDAQ:ALGN) is owned by Israel Englander’s Millennium Management which owns a $212 million stake in Align Technology, Inc (NASDAQ:ALGN).

Polen Global Growth Strategy stated the following regarding Align Technology, Inc. (NASDAQ:ALGN) in its fourth quarter 2023 investor letter:

“Align Technology, Inc. (NASDAQ:ALGN) was the largest relative detractor during the past quarter, primarily because of disappointing third-quarter earnings results where the company’s revenue growth fell short of expectations despite easy comparisons from a year ago. Ultimately, we decided to exit our position in Align during the quarter, as detailed in the Portfolio Activity section.

Align Technology represented another sale in the quarter. Align is the global leader in clear aligner teeth straighteners, having pioneered the category a couple of decades ago. Our decision to move on from the position is not a reflection of the quality of the business or the runway for growth ahead. Rather, given a still uncertain macro environment and the nature of their product as a big-ticket consumer discretionary purchase, we felt it more prudent to use the position as a source of funds to allocate to the aforementioned existing positions, which should prove more resilient with a narrower range of outcomes.”