Stratasys, Ltd. (SSYS) — Those who were expecting a boom in 3D printing and the stocks of related companies have so far been thoroughly disappointed. When SSYS stock was at its peak above $138 in early 2014, the company was considered the leader in the industry with the best marketing, technology and design. While shares have plunged to prices not seen since November 2011, Stratasys is still considered an industry leader.
The company was recently rumored to be a possible acquisition target for Hewlett-Packard Company (HPQ) after HP management said they were interested in partnering with or acquiring a 3D printing company. A Jefferies analyst said an acquisition would be the more attractive option since HP could speed its product-to-market time by up to two years by acquiring a readymade sales channel.
S&P Capital IQ estimates revenue will increase 8.3% in 2015 and then jump 18% in 2016. Its analysts expect operating EPS of 58 cents in 2015, with an increase to $1.70 in 2016. While they currently have a “hold” on SSYS stock, their 12-month price target is $37.
Technically SSYS stock is in an extended bear market, falling from over $138 in January 2014 to a low just above $25 on Aug. 24. However, the stock’s price is leveling off near the low made four years ago. Downside volume is declining, and MACD has been flat since July.
For speculators looking for an oversold stock that is a potential takeover target, SSYS stock can be bought under $28. Keep in mind that this is a very high-risk play that is only suitable for those willing to risk their money on a win-or-lose situation.