3D printing companies have been undergoing growing pains after a surge into the market on a whirlwind of promise in 2013-2014. That promise was broken when technology did not move as fast as the stock prices. After a long period of discontent, that 3D technology has finally reached the point where it is being used to produce everyday items from jet engine parts to high performance running shoes. 3D Systems is the leader in this space.
NEW BULLISH Plays
DDD - 3-D Systems Corp - Company Profile
3D Systems provides 3D printing products and services worldwide. The printers use input from 3D design software, CAD software and other design tools using a range of print materials including plastic, metal, nylon, rubber, wax and composite materials.
3D crashed and burned after a couple of horrific earnings reports in 2015 and shares declined from $33 to $7 at the January lows. The entire sector saw a reset of stock prices and expectations.
For Q4 3D posted earnings of 16 cents that blew away estimates for 3 cents. 3D is the industry leader and appears to be roaring out of the darkness that enveloped the sector in 2015. Three-dimensional printing revenues are expected to grow from $3.07 billion annually in 2013 to $12.8 billion in 2018 and $21 billion by 2020 with a consolidated average growth rate of 34%.
On Monday 3D Systems announced several new software products that overcome prior limitations weighing on all printer companies. The product suite called Geomagic Freeform has multiple products that will power a jump forward in the 3D technology capability and greatly reduce the time needed to go from concept to printed article.
Under Armour (UA) just announced it used 3D Systems selective laser-sintering technology to produce the UA Architech shoe. This is the world's first performance training shoe with a 3D-printed midsole that is available to the general consumer market. Under Armour plans to release an entire line of 3D printed shoes in 2016. Late last year New Balance also partnered with 3D to make a commercially available running shoe with a 3D-printed midsole.
DDD shares are rallying on the multiple announcements and the appearance that all is well in 3D land. Resistance is $15.45.
Earnings are May 5th.
With a DDD trade at $15.60
Buy DDD shares, initial stop loss $13.50
Buy May $17 call, currently 95 cents, initial stop loss $13.50.
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