3D Systems Corporation (DDD) Buy or Sell Stock Guide

Last updated: Mar 17, '18

The analysis below may be helpful to you if you have any of the following questions about DDD stock:

  • Is DDD a buy or a sell?
  • Should I sell or hold DDD stock today?
  • Is DDD a good buy / a good investment?
  • What are DDD analyst opinions, recommendations, ratings?

Here are DDD stock buy reasons/signals:

1. 3-D printing remains in an early stage of development. Leading consultants forecast long-term annual revenue growth rates of 20% or more.

2. 3D Systems possesses the industry’s broadest range of technologies and services, from design software through direct manufacturing and post-printing technical support. This positions it as a go-to supplier for many customers with diverse or evolving needs.

3. The Wilsonville, Oregon, R&D center acquired from Xerox is spearheading new product development efforts, including the firm's fastest-ever printers incorporating its new "racetrack" design.

4. DDD profitability is improving. The YoY profit margin change was 92.33pp.

Here are DDD stock sell reasons/signals:

1. Expiration of early patents on the firm's SLS technology could spur a round of new entrants, downward pricing pressure, and perhaps even open-source alternatives in one of its core product lines.

2. Relative to some competitors, 3D Systems remains underexposed to faster-growing products such as metal printers and overexposed to highly competitive, low-end personal and professional segments that lack an economic moat.

3. The steep drop in the share price from its January 2014 high will complicate execution of the firm's strategic growth programs.

4. DDD quarterly revenue growth was -2.20%, lower than the industry and sector average revenue growth (5.08% and 7.00%, respectively).

5. DDD forward P/E ratio is 51.20, and it’s high compared to its industry peers’ P/E ratios.

6. DDD short share of float is 33.41%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

7. DDD short interest (days to cover the shorts) ratio is 9.56. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on DDD?

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