Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Teeth-straightening specialist Align Technology
So what: Align managed to top analyst expectations for the third quarter, but a softening dental market doesn't bode well for next quarter's results. Align's North American dentists are continuing to report lower visits and weak demand for expensive procedures, explaining the lower-than-expected submissions for its Invisalign system, as well.
Now what: While Align's unique invisible braces have had some success over the past few years, I'd urge Fools not to pounce on today's price plunge. A less than ideal operating environment, coupled with increasing bracket-free competition from the likes of Orthocare, DENTSPLY
Interested in more info on Align? Add it to your watchlist here by clicking here.
True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool's disclosure policy always gets a perfect score.