3D Systems Printing Profits for Traders

by Sam Collins | September 23, 2013 1:46 am

3D Systems (DDD[1]) — I first recommended this 3D printing stock on Aug. 12[2], at $47.23, and again on Aug. 27[3], at $50.75. On Aug. 20, Citigroup (C[4]) 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
Click to Enlarge
Chart Key[5]

  1. DDD: http://studio-5.financialcontent.com/investplace/quote?Symbol=DDD
  2. on Aug. 12: http://investorplace.com/2013/08/trade-of-the-day-3d-systems-corp-ddd/?
  3. on Aug. 27: http://investorplace.com/2013/08/trade-of-the-day-3d-systems-ddd/
  4. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  5. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2013/09/trade-of-the-day-3d-systems-ddd-2/
Short URL: http://invstplc.com/1ftNu32