Take a Position in the Future With This 3D Printing Stock

by Sam Collins | July 15, 2014 1:42 am

Stratasys (SSYS[1]) — This maker of 3D printers and production systems for office-based rapid prototyping has only one major competitor, 3D Systems (DDD[2]). 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[3]) 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[4] to $134.

On Nov. 20,[5] 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.

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Source URL: https://investorplace.com/2014/07/trade-day-stratasys-ssys-6/

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