3D Systems Corporation (DDD), Stratasys, Ltd. (SSYS): Investing in Major Growth

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But not everyone in the for-profit education business has been struggling.  While Apollo’s numbers are all heading the wrong way, Grand Canyon Education Inc (NASDAQ:LOPE) has been hitting its stride.


LOPE Net Income TTM data by YCharts

Net income is up over 1,000% over the past five years.  And their valuation has come way down.  You can get into this investment at a price just around 15 times earnings.  Based on performance for the last five years, and based on offering 2013 guidance above Wall Street’s hopes and dreams, it seems like Grand Canyon Education Inc (NASDAQ:LOPE) could be poised to take advantage of the growing industry.

Social gaming

This one was hard for me to believe, but social network gaming is one of the big growth trends in our world right now. Zynga Inc (NASDAQ:ZNGA) is perhaps the best known player in this industry right now.

And people are actually getting really excited about Zynga.  Shares went sailing over 15% with word that they are getting into online gambling in the UK.


ZNGA Revenue TTM data by YCharts

You can see why some investors are beside themselves like a dog in a fire hydrant museum.  Revenue has largely plateaued for the company. Net income and free cash flow are going the wrong way.  Something has to give for this company.  They didn’t turn a profit last year, and it’s not expected this year either.  This online gambling provides a glimmer of hope for investors.

The industry is expected to grow 22% annually until 2017.  That is some big time growth potential.  I’m just not sure that Zynga Inc (NASDAQ:ZNGA) is going to be the one to capitalize on it.

Final thoughts

These industries are high growth both now and for the next few years at least.  Within these industries there will be some big time winners.  If you’re are looking for a home run opportunity, looking inside these industries for the best company may be your best chance.

The article Investing in Major Growth originally appeared on Fool.com and is written by Jon Quast.

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