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3D Systems Printing Profits for Traders

Profit-taking could drop DDD to $50, where you should be a buyer


3D Systems (DDD) — I first recommended this 3D printing stock on Aug. 12, at $47.23, and again on Aug. 27, at $50.75. On Aug. 20, Citigroup (C) analyst Ken Wong initiated coverage with a “buy” rating and a $60 price target, saying that the 3D printing market should more than triple over the next five years.

Analysts look for revenue of more than $505 million this year and over $626 million in 2014. Earnings per share (EPS) came in at $0.83 in 2012, and the consensus estimates are for $1.02 in 2013 and $1.33 in 2014.

Technically, DDD broke from a compound top at $51 in mid-August on high volume. Since then, it has been consolidating along its intermediate trendline and 50-day moving average, now at $49.29.

On Thursday, the stock broke to a new high at $55.44, and now appears vulnerable to profit-taking. Buy DDD on a pullback to $50 with a trading objective of $58. Long-term buyers can expect much higher returns.

DDD Chart
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