3 Reasons 3D Systems Corporation (DDD) is Still a Buy After Rising 250% Last Year

Page 1 of 2

3D Systems (DDD)Three-dimensional printing has received quite a bit of hype over the past year. Though the technology has been around for more than two decades, investors’ optimism on this industry has improved dramatically, and the stock prices of key players like 3D Systems Corporation (NYSE:DDD) and Stratasys, Ltd. (NASDAQ:SSYS) tell the story. Shares of the former have risen by 103.2% in the last 12 months, and Mr. Market has pushed 3D Systems up nearly twice as high.

Now, triple-digit returns over a fairly short time frame will have plenty of armchair analysts calling for a bubble, but it’d be a mistake to simply sell out of both companies because of their recent successes. Aside from this stunning market-beating strategy, 3D Systems can also still make its investors money. The stock’s bullish thesis boils down to three key factors:

1) Usability and affordability.

Most importantly, it appears that 3D Systems’ advantage over Stratasys and the rest of its competitors—MakerBot and Hewlett-Packard Company (NYSE:HPQ) have products in this space—lies in its usability and affordability. Regarding the latter point, 3D Systems makes a number of printers, though many analysts are most excited about its Cube 3D model, which is priced just below $1,300. Stratasys and MakerBot’s most accessible models are priced near $10,000 and $2,000 respectively.

While most of its competitors’ three-dimensional printers are focused on providing workplace solutions, 3D Systems’ Cube 3D has an intuitive in-home feel, and its design specifications have been tailored so users of all ages can bring their favorite creations to life. For those feeling less creative, the company offers preset designs that can be easily downloaded as well.

2) Product diversification.

In addition to its Cube 3D printer, 3D Systems also offers upper-tier ZPrinter, ProJet and BotMill models. As we proclaimed on Insider Monkey last year:

“3D Systems’ role in its industry is equivalent to a hypothetical scenario where Apple offered its current stable of iPods, and serious competitors only had a 160 gig version to sell.”

With a plethora of price options aimed at the full spectrum of users who will want 3D printers in the future, it’s difficult to justify betting against this company. In fact, the only reason many bears have started to enter the conversation is because of the stock’s so-called “premium” valuation. But, as with many things in life, appearances can be deceiving.

3) Shares aren’t as expensive as they look.

At 37.3 times forward earnings and a PEG near 4.1, 3D Systems looks like a growth-trap at first glance. Yes, obviously the company operates in an industry with mammoth potential, but would investors be better off waiting for a more attractive entry point?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!