The fall from grace suffered by 3D printing stocks has been a sight to behold.
Once the belle of the ball, these momentum stocks have been destroyed. The quartet included in today’s gallery have fallen an average of 86% from their highs. That’s not a bear market, it’s a broad swath of destruction delivering hair-raising losses to investors with the misfortune of still owning 3D printing stocks in their portfolios.
But enough with kicking shareholders while they’re down. Today’s missive is one of hope. The price action in many 3D printing stocks is turning higher. And, spoiler alert, they look more bullish than they have since the death spiral began for the industry in 2013.
Behold, four 3D printing stocks rising from the ashes.
3D Printing Stocks to Buy: 3D Systems Corporation (DDD)
We begin with the best of the bunch, 3D Systems Corporation (DDD) — not necessarily the best from a fundamental perspective, mind you, but from a price perspective. Spurred by a better-than-expected earnings announcement, DDD stock has scored some serious gains of late.
Since bottoming in mid-January at a lowly $6, DDD is up an impressive 146%.
Of course, skeptics may well observe the stock remains a far cry from its lofty peak around $97. But, hey, one step at a time. The fact is, the price action in DDD looks better than it has in years.
Should the ascent continue, consider pullbacks and breakouts buyable. DDD is the indisputable popularity king among 3D printing stocks, making it the best candidate for option traders.
Buy the August $14 calls for $2.50 or better.
3D Printing Stocks to Buy: Stratasys, Ltd. (SSYS)
Stratasys, Ltd. (SSYS) scored a rousing recovery following its latest earnings announcement as well. Unlike DDD, however, SSYS stock hasn’t climbed near as much. Shares are only 65% off their lows. And while DDD has succeeded in climbing above other major moving averages, SSYS remains below the pivotal 200-day moving average.
That said, SSYS has been developing a nice-looking base over the past month, creating a platform to launch off of during its next breakout — a breakout which should take the 3D printing stock back above its 200-day moving average, further improving its technical posture.
While its trading volume lags DDD, the liquidity in SSYS is still adequate for an option play.
Buy the June $22.50 call for $4.20.
3D Printing Stocks to Buy: ExOne Co (XONE)
While DDD and SSYS are the big boys in the 3D printing space, traders do have a few other stocks at their disposal for playing the industry. ExOne Co (XONE) is one such candidate. Its flight path has mirrored those of its bigger brethren.
XONE stock peaked in mid-2013 amid widespread euphoria surrounding the 3D printing phenomenon, then subsequently cratered as the growth and earnings failed to live up to the hype.
Spectators seeking signs of a turnaround in XONE finally have something to be excited about. The stock has turned a corner, rising above all major moving averages amid a trend reversal for its short-term and intermediate-term trend.
The liquidity in XONE options leaves much to be desired. Buy shares of the stock instead. Consider using the $9 zone as a stop loss.
3D Printing Stocks to Buy: Voxeljet AG (ADR) (VJET)
Voxeljet AG (ADR) (VJET) rounds out the list, and appropriately so. It’s the cheapest of the bunch and is the least actively traded. Nonetheless, VJET is strongly correlated the other 3D printing stocks, providing exposure to the space for those looking for a higher-beta avenue into the industry.
Like its peers, VJET has scored a notable rally this year, turning its short-term and intermediate-term trends higher. Unfortunately, it has yet to eclipse its 200-day moving average, which is keeping a lid on its rebound thus far.
Watch for a breakout over the $5.60 level in the days ahead. That’s the ideal entry point for those looking to gain further upside in VJET.
Stay away from the options on this one. Buy shares instead.
At the time of this writing Tyler Craig had no positions on any of the aforementioned securities.