Stratasys’ Sell-off Could Create a Huge Profit Opportunity

by Sam Collins | November 20, 2013 1:42 am

Stratasys (SSYS[1]) — This maker of three-dimensional printers and 3D production systems for office-based rapid prototyping has only one competitor, 3D Systems (DDD[2]). I’ve recommended both stocks several times this year, saying, “While 3D Systems has a slight edge in marketing, Stratasys has a greater geographic footprint, and both companies should prosper.”

Analysts’ consensus estimate for SSYS is for earnings of $1.86 per share in 2013, up from $1.49 in 2012, and $2.37 in 2014. They have a mean target of about $133.

On Monday, the stock popped to a new high at $134, but profit-taking on Tuesday took a big chunk from its advance. SSYS fell almost 9%, and its MACD flashed a short-term sell signal. 

Traders and investors alike might benefit from this correction. Try to buy SSYS at its 50-day moving average at about $108. The trading target is $130, but long-term investors could hold for potentially much greater gains.

SSYS Chart
Click to Enlarge

Chart Key[3]

  1. SSYS:
  2. DDD:
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