Charting Review on 3D Systems and Stratasys: 3D Printing Stocks Set to Offer High Returns
LONDON, January 25, 2013 /PRNewswire/ --
While 3D printing has been around for the last 25 years or so, the technology has only reached its commercial potential now. The revolutionary technology is not only making it easier for companies to design and manufacture new products, but it is proving to be equally attractive for investors as well. StockCall has initiated technical analysis on 3D Systems Corporation (NYSE: DDD) and Stratasys Ltd. (NYSE: SSYS). These free reports are available at
http://www.stockcall.com/research
The industry pioneer 3D Systems offered mouthwatering 250 percent return last year and it is expected to keep performing well, thanks to the introduction of new products. Stratasys Ltd. (NYSE: SSYS), on the other hand, merged with Objet to create another formidable force in the sector. The stock gained about 140 percent in last 12 months. While the stocks have provided astronomical returns and the future of 3D printing looks promising, it is also imperative for investors to see whether the current lofty valuations are sustainable. Download the free technical report on Stratasys at
http://www.StockCall.com/SSYS012513.pdf
3D Systems Looks to Capture Retail Market
In recent years, due to impressive technological advancements, 3D printing is increasingly becoming more and more affordable. The technology is still primarily used by large corporations and organizations, but 3D Systems Corp. [Free Report on DDD](1) is planning to bring it to the consumers. During the recently concluded CES, the company demoed its new printers Cube and CubeX in the sub-$2K price range. With these new printers 3D Systems is trying to lure end-users to purchase 3D printers. However, it should be kept in mind that despite lower initial outlay, 3D printing is still an expensive endeavor as it involves high operating expense. It also calls for technological sophistication, which may be difficult to achieve by a lay person. Since 3D printing is a disruptive sector and is experiencing high rate of growth, it is reasonable to assume that the companies would be able to come up with consumer friendly printers in the future. In this scenario, 3D Systems will be all set to reap the benefits of being the early entrant.
3D Systems is currently trading at Price Earnings Multiple of 103. However, high growth sectors like 3D printing, multiples are generally not good indicators. The company has clear direction and is likely to develop and lead consumer 3D printing segment. It is also consolidating its position through acquisitions. 3D Systems acquired more than 20 companies in last two years.
Stratasys Focuses on Enterprise Clientele
While 3D Systems is planning to generate new revenue stream by introducing consumer level printers, its competitor Stratasys is focusing on corporate clients. It currently has big names such as Boeing, Intel and Ford as its clients. Current Stratasys Ltd. was formed in 2012 after the acquisition of Israeli company Objet by Stratasys. The merger has been rated highly positive by experts and synergistic effects are clearly visible. The combined entity debuted in December last year and since then the stock has gained over 20 percent. Unlike its competitor 3D Systems, Stratasys did not make any product announcements at CES.
Like 3D Systems, Stratasys also sports Price Earnings Ratio of over 100. However, the company has solid financial backing with no debt and about 50 percent gross margin. 3D printing segment is now attracting attention and newer companies are entering the field. In order to counter the completion, major companies like 3D Systems and Stratasys are not only growing organically, but are also consolidating their positions through acquisitions.
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- 3D Systems Corp. Technical Analysis [ http://www.StockCall.com/3DSystemsCorp012513.pdf ]
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