Can 3D Systems Corporation (DDD) Live up to Expectations?

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3-D Systems has a leg up on the competition in terms of scale with 70% higher sales than Stratasys and a much larger gap down to little ExOne. The company is also growing faster than Stratasys while maintaining comparable margins. If I had to pick one 3-D printing stock to buy today, 3-D Systems would be it.

That being said, I wouldn’t back up the truck just yet. Yes, 3-D Systems is likely to meet or beat analyst targets next week. No, it’s not a 100% guaranteed outcome. This is still a young and immature market, and the ride will be bumpy. If this turns out to be the first time 3-D Systems misses earnings estimates by a penny, the market reaction will be brutal.

There’s no particular reason why it would happen right now, but serious investors must consider the possibility. For the love of money, don’t buy a pack of short-dated call options right now. Give the company some time to grow into its breeches. If you believe in 3-D printing as a long-term revolution, investing by thirds is not a bad idea.

The article Can 3-D Systems Live up to Expectations? originally appeared on Fool.com and is written by Anders Bylund.

Fool contributor Anders Bylund holds no position in any company mentioned. Check out Anders’ bio and holdings or follow him on Twitter and Google+. The Motley Fool owns shares of and has created a covered strangle position on 3D Systems. Motley Fool newsletter services have recommended buying shares of Stratasys and 3D Systems.

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