3D Systems Corporation (DDD)
As easy as it is to presume the biggest player in an industry is the also the best, $8 billion printer manufacturer 3D Systems Corporation (DDD) doesn’t fit that mold.
It’s not a matter of capability; 3D Systems makes great three-dimensional printers. At some point, though, the market is going to realize that the value of DDD stock has far exceeded any reasonable likelihood of being justified in the foreseeable future … even if the industry’s growth reaches the top end of expectations. As of right now, 3D Systems Corporation is priced at 169 times its trailing earnings, and at 61 times its forward-looking earnings.
Being one of the premier 3D printing stocks also means you’re the biggest target for the naysayers. Case in point: Citron Research recently published a long string of reasons investors would want to steer clear of DDD stock. For better or worse, people pay attention to — and respond to — that kind of commentary. Perhaps worse than that, some of the media began to circulate those arguments.
Now that it’s on traders’ mental hit list, it’s going to be tough for 3D Systems to shrug off the stigma.