Align Technology, Inc. (NASDAQ:ALGN) stock has been on quite a run this year. It’s up over 100% year to date.
The company, which makes Invisalign clear plastic orthodontic products as well as proprietary equipment to fit and analyze the placement of the systems, continues to dominate this sector.
While ALGN stock has been a darling of Wall Street for a while now, that affection has grown stronger in recent weeks as Washington has moved from healthcare to tax reform.
The feeling now is, that if Congress can pass tax reform that cuts taxes for the middle class, some of the money that goes back to taxpayers may end up in people’s mouths.
Analysts on the Street contend that many people that get some extra spending money tend to spend it on cosmetic services, like straightening their teeth. Since Invisalign isn’t covered by insurance, customers have to pay out of pocket, so extra spending money would certainly be an inducement.
That’s not to say that Align Technology hasn’t earned its results. ALGN stock has been very successful as the company rolled out newer versions of its Invisalign technology to appeal to a much broader market.
Doctors like the technology because it’s much easier to work with than metal brackets and wires, which means they can spend less time per patient. That means they can see more patients.
According to Business Insider, ALGN controls about 90% of the high-end clear plastic braces market, where patients use graduated sets of aligners. It also has nearly 65% of the lower end market.