3D Systems Corp. (DDD) — Most investors have not heard the word “stereolithography,” but are at least familiar with the process of 3-D printing — the ability to print objects in three dimensions. Charles Hull founded 3-D Systems in 1986 and coined the term.
There are several competitors, but 3D Systems’ goal is to bring this technology to the public, and at this year’s Consumer Electronics Show, introduced Cubify, a forum where the public can access design tools, sell their creations, or have them printed and delivered or made at home on “The Cube,” which sells for $1,299. It also uses Microsoft’s (MSFT) Kinect Xbox game controller as a 3-D scanner.
Analysts are looking for revenues to exceed $500 million this year, and for revenue of $617.4 million in 2014. Earnings are estimated to be $1.02 in 2013, up from $0.83 in 2012. And analysts are expecting $1.30 in 2014 and $1.54 in 2015.
Technically, DDD is in a powerful bull market with major support at its 200-day moving average at under $40. Last week, the stock issued a buy signal from our internal indicator, the Collins-Bollinger Reversal (CBR), and MACD’s red line arched up — a positive sign.
A break through $52 renders a target of $60. But this could be a very volatile stock, so partial positions might be wise with full positions added on either a breakout or a pullback to the low $40s.