Stratasys (SSYS) — This maker of 3D printers and production systems for office-based rapid prototyping has only one major competitor, 3D Systems (DDD). I’ve recommended both stocks several times this year.
On Monday, MakerBot, a wholly owned subsidiary of Stratasys, announced it had reached an agreement with Home Depot (HD) to bring its Replicator 3D Printers to 12 Home Depot stores in three states. This is a first for both companies and could be an effective means to introduce 3D printers to the public.
The consensus estimate for the company’s 2014 earnings are $2.20 per share, up from $1.84 last year, and $2.97 in 2015. Analysts’ median price target has increased $4 since my latest recommendation to $134.
On Nov. 20, with the stock near $120, I pegged its trading target at $130, and it achieved a high of $138 in early January. SSYS then fizzled, falling under $90 in May. From there, it rallied back above its 200-day moving average, topping out above $128 before succumbing to profit-taking.
For those who would like to have a position in the future growth of 3D printing, try to buy this leading manufacturer at or below its 50-day moving average around $98. The trading target is $120, and the long-term objective is $150. Traders should enter a stop-loss order at $90.