Align Technology (ALGN) Fell After Mixed Quarterly Earnings Report

Fidelity Investments, an investment management company, released its “Fidelity Growth Strategies Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The strategy returned -2.39% in the quarter, modestly outpacing the benchmark Russell Midcap Growth Index’s -3.21% return. Security selection drove the outperformance of the strategy in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Fidelity Growth Strategies Fund highlighted stocks like Align Technology, Inc. (NASDAQ:ALGN) in its Q2 2024 investor letter. Align Technology, Inc. (NASDAQ:ALGN) designs, manufactures, and markets Invisalign clear aligners, and iTero intraoral scanners and services. The one-month return of Align Technology, Inc. (NASDAQ:ALGN) was 12.28%, and its shares lost 12.49% of their value over the last 52 weeks. On September 30, 2024, Align Technology, Inc. (NASDAQ:ALGN) stock closed at $254.32 per share with a market capitalization of $18.997 billion.

Fidelity Growth Strategies Fund stated the following regarding Align Technology, Inc. (NASDAQ:ALGN) in its Q2 2024 investor letter:

“Within the health care equipment & services segment, overweighting medical device company Insulet (+17%) and avoiding Align Technology, Inc. (NASDAQ:ALGN) (-26%), makers of Invisalign orthodontic aligners, each also helped. Align Technology’s stock fell following a mixed Q1 earnings report, which included better-than-expected quarterly revenue but net income and earnings per share that fell well short of expectation.”

An orthodontist examining a patient’s teeth with a intraoral scanner, demonstrating the precision of the company’s technology.

Align Technology, Inc. (NASDAQ:ALGN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Align Technology, Inc. (NASDAQ:ALGN) at the end of the second quarter which was 56 in the previous quarter. The total revenues of Align Technology, Inc. (NASDAQ:ALGN) for the second quarter were $1,028.5 million, an increase of 2.6% from Q2 2023 and up 3.1% from Q1 2024. While we acknowledge the potential of Align Technology, Inc. (NASDAQ:ALGN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Align Technology, Inc. (NASDAQ:ALGN) and shared Parnassus Value Equity Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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