Trade of the Day: SSYS Stock Could Come Roaring Back

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Stratasys, Ltd. (SSYS) — 3D printing stocks were all the rage in 2012 and 2013. In just two years, SSYS stock more than quadrupled in price, hitting an all-time-high above $138 on Jan. 3, 2014.

As the hype faded, the group suffered from profit taking and poor earnings. SSYS stock was decimated, plummeting almost 90% to a low of $14.48 last month. But the industry still has extraordinary growth potential and SSYS stock has formed a bottoming pattern on the chart.

On Monday, SSYS stock jumped 4% after its primary competitor, 3D Systems Corporation (DDD), reported better-than-expected fourth-quarter earnings. But Stratasys also beat analysts’ expectations when it released results last month, and it looks to be the top choice in its field.

For example, Zacks rates SSYS stock a “Strong Buy,” while it rates DDD stock a “Sell.” A recent Zacks article comparing the two companies concluded: “The numbers say that Stratasys is the better 3D printing stock right now, and is the safest addition to your portfolio due to its strong momentum going forward.”

Analysts are anticipating sales growth of 2.2% in 2016 and 9.6% in 2017. Earnings are projected to increase 58% this year to 30 cents per share and jump 140% next year to 72 cents.

Technically, SSYS stock broke from a saucer bottom, slicing through its 50-day moving average at about $19 and then punching through its bearish resistance line at $25. From there, it continued to advance above the 200-day moving average at $27 on very high volume, and then consolidated last week in a bullish flag.

This very bullish activity is a significant reversal that will likely lead to much higher prices. Traders should buy SSYS stock at $25 with a trading target of $30 for a potential short-term gain of 20%. Long-term investors should hold shares for a substantial move higher.

SSYS Stock Chart
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Chart Key


Article printed from InvestorPlace Media, https://investorplace.com/2016/03/stratasys-ltd-ssys-stock-trade-of-the-day-2/.

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