Core Insights - Align Technology, Inc. collaborates with the University of Bern on Switzerland's first Swiss Oral Health Study, aiming to gather comprehensive data on the oral health of the Swiss population [1][3][9] Group 1: Study Overview - The Swiss Oral Health Study is a large-scale epidemiological initiative targeting three age groups: 6–12, 35–44, and 65–74 years, with a goal to examine approximately 1,800 children by June 2026 and 1,650 adults by the end of 2027 across six cantons [3][4] - The study aims to identify trends in oral health, such as early-childhood caries, and establish a baseline for future public health strategies [4] Group 2: Technology Utilization - Align Technology is providing its iTero Lumina intraoral scanner, which will play a central role in data collection, enhancing diagnostic accuracy and patient experience [5][9] - The iTero Lumina scanner features advanced capabilities, including near-infrared imaging technology for real-time monitoring of dental conditions without harmful radiation [6][10] Group 3: Implementation and Impact - An Align-branded mobile dental van equipped with the iTero Lumina scanner will facilitate on-site examinations and digital scans in schools and communities across Switzerland [2][7] - The collaboration exemplifies the integration of industry and academia to drive innovation in oral health research, with the potential to improve patient outcomes significantly [8][9]

Core Insights - Wealth Enhancement Advisory Services LLC increased its stake in Align Technology, Inc. by 38.9% during the third quarter, owning 15,551 shares valued at $2,029,000 at the end of the quarter [1][2] - Several hedge funds modified their holdings in Align Technology, with notable acquisitions including QRG Capital Management Inc. and Virginia Retirement Systems, indicating strong institutional interest [3] - Align Technology's stock performance shows a market capitalization of $11.70 billion, with a 52-week price range of $122.00 to $232.20 [4] Financial Performance - Align Technology reported earnings of $2.61 per share for the quarter, exceeding the consensus estimate of $2.38 by $0.23, with revenue of $995.69 million, surpassing expectations of $980.75 million [5] - The company experienced a year-over-year revenue increase of 1.8%, with a net margin of 9.50% and a return on equity of 13.96% [5] Analyst Ratings - Recent analyst reports show varied price targets for Align Technology, with Jefferies Financial Group raising their target from $140.00 to $155.00, while Evercore ISI lowered theirs from $220.00 to $170.00 [6] - The consensus rating for Align Technology is "Hold," with an average price target of $176.82, reflecting mixed sentiment among analysts [6] Company Overview - Align Technology, Inc. is known for pioneering digital technology in orthodontics with its Invisalign system, which offers a clear alternative to traditional braces [7][8] - The company has expanded its offerings to include intraoral scanners and CAD/CAM software, enhancing its position in the digital dentistry market [8]

Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the fund returned 12.58% compared to 17.88% for the Index. The firm faced a challenging fourth quarter and calendar year, despite solid appreciation. The outperformance of a few large technology companies has negatively impacted performance, given the portfolio's und ...

Core Viewpoint Align Technology, Inc. (ALGN) is expected to report its fourth-quarter 2025 results on February 4, with positive growth anticipated in both revenues and earnings per share (EPS) compared to the previous year. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for fourth-quarter revenues is $1.03 billion, indicating a 3.9% growth from the previous year [2] - The Zacks Consensus Estimate for earnings is $2.99 per share, reflecting a 22.5% increase from the year-ago figures [2] - Earnings estimates have remained unchanged at $2.99 per share over the past 60 days [3] Group 2: Factors Influencing Q4 Performance - The Clear Aligner segment is expected to benefit from increased volumes, particularly in the EMEA, APAC, and Latin American regions, with growth driven by orthodontists and general dentist channels [4] - Strong contributions are anticipated from products like Invisalign First and DSP touch-up cases, along with the rollout of the Invisalign System with mandibular advancement in Thailand and the Philippines [5] - Recent innovations in treatment planning tools, such as the ClinCheck Live Plan, are expected to enhance operational efficiency and positively impact revenues [6] Group 3: Segment Performance - Clear Aligner revenues are projected to grow by 3.9% year-over-year [7] - The Imaging Systems & CAD/CAM Services segment is likely to see revenue growth from increased scanner services and iTero CAD/CAM sales, with strong performance in scanner leases [8][9] - Recent product innovations within the iTero Digital Solutions ecosystem are expected to resonate well with customers, further driving revenue growth [10] Group 4: Earnings ESP and Zacks Rank - Align Technology has an Earnings ESP of -1.62%, indicating a lower chance of beating estimates [12] - The company currently holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to other stocks [13]

Industry Overview - The Zacks Medical - Dental Supplies industry is expected to maintain upward momentum in 2026 due to innovation, an aging population, and normalized orders post-COVID-19 [1] - The global medical supplies industry is projected to reach $163.5 billion by 2027, growing at a CAGR of 3.4% from 2022 to 2027 [4] Technological Advancements - Continued adoption of digital services and AI-enabled tools is anticipated to enhance patient experience and reduce administrative burdens for physicians [2] - Innovations such as CAD/CAM systems, 3D imaging, and AI diagnostics are expected to improve treatment efficacy and broaden product use [8] Market Trends - The industry is shifting towards higher-margin specialty areas like oncology and urology, with precision health and theranostics emerging as significant trends [3] - There is a growing emphasis on preventive care and minimally invasive procedures, which is expanding market segments for dental consumables [9] Regional Growth Drivers - Emerging markets, particularly in Asia-Pacific, are benefiting from increased healthcare expenditure and improved access to care, contributing to faster growth rates [10] Economic Factors - Strong healthcare infrastructure and higher disposable income in developed regions support the adoption of advanced dental products [11] Challenges - U.S. tariffs have raised costs on essential imported dental supplies, leading to increased prices and supply-chain disruptions [12] - The industry is responding by shifting supply chains towards domestic production to mitigate tariff exposure [13] Company Performance - The industry has outperformed its sector with a collective gain of 6.6% over the past year, compared to the Zacks Medical sector's rise of 1.9% [16] - The industry is currently trading at a forward P/E of 17.67X, lower than the S&P 500's 22.81X [19] Company Insights - West Pharmaceutical is expected to maintain growth momentum in 2026, driven by demand for high-value products and operational improvements [21][22] - McKesson anticipates revenue growth of 11-15% in fiscal 2026, supported by strong demand in specialty distribution [30] - Cardinal Health expects revenues from its Pharmaceutical segment to grow 15-17% year-over-year, with challenges from competitive pricing pressures [35] - Align Technology is positioned for growth in 2026 due to restructuring actions and technological innovations, with a projected revenue increase of 3.7% [42]

Core Viewpoint - The analysis of Align Technology, Inc. (ALGN) indicates a negative outlook, with a previous recommendation of Strong Sell due to anticipated disappointments in performance [1]. Company Analysis - Align Technology has been under scrutiny for approximately three years, with the initial assessment predicting challenges ahead [1]. - The analyst emphasizes a long-term investment horizon of 5-10 years, suggesting a preference for a balanced portfolio that includes growth, value, and dividend-paying stocks, although there is a stronger inclination towards value stocks [1].

Core Insights - A significant majority, four in five workers, believe that artificial intelligence (AI) will impact their daily tasks in the workplace, indicating a strong perception of AI's influence on job functions [1] Group 1: Worker Sentiment - Gen Z workers are particularly concerned about the increasing reliance on AI chatbots and automation in their workplaces, highlighting a generational divide in attitudes towards AI [1]

Core Insights - Align Technology, Inc. has launched a new initiative in collaboration with the Canadian Foundation for the Advancement of Orthodontics (CFAO) to support Invisalign treatment for 30 eligible patients [1] Company Overview - Align Technology is a leading global medical device company specializing in the design, manufacture, and sale of the Invisalign® System of clear aligners, iTero™ intraoral scanners, and exocad™ CAD/CAM software for digital orthodontics and restorative dentistry [1]

Fund Performance - Artisan Mid Cap Value Fund's Investor Class returned 0.97%, Advisor Class returned 0.98%, and Institutional Class returned 0.97% in Q3 2025, underperforming the Russell Midcap Value Index which returned 6.18% [1] - The equity markets rallied in Q3, driven by strong corporate earnings, rising AI capital expenditures, and expectations of economic support from US fiscal policy and lower interest rates [1] Company Focus: Baxter International Inc. - Baxter International Inc. (NYSE:BAX) had a one-month return of 7.38% but lost 34.25% over the last 52 weeks, closing at $19.50 per share with a market capitalization of $10.024 billion on January 2, 2026 [2] - The healthcare sector, including Baxter, was a significant source of underperformance for the fund, with three of the four biggest detractors coming from this sector [3] Company Challenges and Strategy - Baxter has faced growth challenges post-COVID due to supply-chain issues and delayed normalization of procedure volumes, leading to disappointing performance [3] - The company has undergone a multiyear restructuring, selling non-core operations to become a more profitable growth entity, although this has created confusion among investors [3] - Baxter's stock is currently trading at a single-digit multiple on forward earnings, near its lowest valuation levels, and the company is using free cash flow to pay down debt and return capital to shareholders [3]

Fund Performance - Artisan Mid Cap Value Fund's Investor Class fund ARTQX returned 0.97%, Advisor Class fund APDQX posted a return of 0.98%, and Institutional Class fund APHQX returned 0.97% in Q3 2025, compared to a 6.18% return for the Russell Midcap Value Index [1] Market Context - Equity markets continued to rally in Q3 2025 as investors overlooked tariff concerns, driven by strong corporate earnings, rising AI capital expenditures, and hopes for economic support from US fiscal policy and lower interest rates [1] Centene Corporation Overview - Centene Corporation (NYSE:CNC) is a healthcare enterprise that provides services to under-insured and uninsured families and commercial organizations, with a one-month return of 10.30% and a 52-week loss of 33.35% [2] - As of January 2, 2026, Centene's stock closed at $41.78 per share, with a market capitalization of $20.536 billion [2] Performance Analysis of Centene Corporation - The portfolio's stock selection was broadly negative across sectors in Q3 2025, with the healthcare sector being a significant source of underperformance, particularly due to Centene Corporation, Align Technology, and Baxter International [3] - Centene's shares declined after the company withdrew its 2025 guidance due to higher-than-expected market acuity on the ACA marketplaces and elevated Medicaid cost trends, compounded by a declining trend in Medicaid enrollment [3] - The end of the pandemic-era policy prohibiting disenrollment from Medicaid has led to millions losing coverage, and new work requirements from the Big Beautiful Bill (BBB) set to take effect on January 1, 2027, are expected to create additional headwinds for Medicaid enrollment [3] - Although Centene can reprice risk annually, the multitude of challenges it faces, including changes from the BBB, will likely delay recovery, prompting the fund to exit its position in Centene [3]