Jim Cramer on Align Technology: "There Are a Lot of Forces Against It"

Align Technology, Inc. (NASDAQ:ALGN) is one of the stocks Jim Cramer recently offered insights on. When a caller asked about the company during the latest Mad Money episode, Cramer said:

“I want you to go. I know it’s a low price-to-earnings multiple, but I just think there are a lot of forces against it. Let’s move on from that one.”

Align Technology, Inc. (NASDAQ:ALGN) develops and markets products used in orthodontic and restorative dental treatments. The company’s products include digital scanning, design, and 3D printing solutions. Cramer mentioned the company during the July 31 episode and remarked:

“What do you make of the shocking decline in a company like Align Technology? That’s the maker of Invisalign clear aligners. It’s the gold standard, the one that dentists love to recommend, but it missed its numbers badly, and its stock collapsed, down nearly 37%, one session. Let me tell you what CEO Joe Hogan, who again is no slouch, gave as his excuse for the weakness in his conference call. Listen to this, ‘In the face of a challenging and uncertain macroeconomic backdrop characterized by global tariff volatility, ongoing inflation, elevated interest rates, and unstable consumer confidence, we’re navigating with a clear focus to control what we can.’ Then he says, ‘significant headwinds across the consumer discretionary spend landscape’ has come to hurt these guys. I say, well, wait, wait a second, wait a second. We’re talking about clear braces here; we’re talking about your teeth. To me, that’s not really that much of a discretionary item, at least not in America, maybe in Britain. But most Americans get their teeth straightened, or at least they did. I mean, apparently now it’s becoming discretionary spending. People must really be strapped. Because I believe Hogan, I’ve had him on the show a bunch of times.”

While we acknowledge the potential of ALGN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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