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Why SmileDirectClub Shot Nearly 5% Higher Today


What happened

SmileDirectClub (NASDAQ:SDC), a stock that has certainly had its ups and downs of late, enjoyed an up day on Wednesday. Investors reacted quite positively to the dental-aligner specialist’s latest piece of product news, and the stock closed 4.5% higher.

So what

The new item in SmileDirectClub’s product portfolio is fast-dissolving whitening strips, for those who want gleaming teeth but don’t have the inclination to wait for them. According to the company, the strips require only a 15 minute wear time once per day to have the desired effect.

Three young people smiling happily.

Image source: Getty Images.

Habitual use can apparently put a real gleam on one’s choppers. SmileDirectClub said with that once-per-day application over a week, the strips can whiten teeth up to nine shades in color.

The new product is available in either one-week or two-week treatment cycles, at prices of $30 and $45, respectively. They are to be rolled out to more than 4,600 Walmart stores in late February, SmileDirectClub said, and other top retailers throughout the U.S. in the subsequent weeks.

The company wasn’t shy in talking up the new product. It quoted its general manager of global oral care Amy Keith as saying that with the strips, it “is revolutionizing the way we look at whitening teeth.”

Now what

SmileDirectClub is also launching a marketing push to help it sell the strips. The specialty-healthcare company has drafted top Peloton Interactive trainer Tunde Oyeneyin in this effort. It didn’t specify how Oyeneyin would be compensated for her work.

Investors are right to be encouraged by the new product since there’s plenty of demand for good-looking teeth and the strips promise a quick, easy way to obtain them. The new offering should strengthen SmileDirectClub’s consumer-facing portfolio, which compliments its always-limited market for teeth aligners.

 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.





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