3D Systems 3D printing machine
Source: 3D Systems Facebook

Is 3D Systems (DDD) a Good Stock to Buy? A Look at the Year Ahead

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May. 12 2021, Published 9:24 a.m. ET

3D Systems (DDD) stock rose 35 percent on May 11. The stock rose after the 3D printing machine maker posted strong first-quarter earnings results. How’s the company’s outlook? Is it too late to buy DDD stock at these prices?

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3D Systems reported an adjusted EPS of $0.17 compared to -$0.04 in the prior-year period. Its sales rose 7.7 percent YoY (year-over-year) to $146.1 million. Wall Street analysts expected the company to report an adjusted EPS of $0.02 on revenue of $136.6 million. The company said that it witnessed solid demand in both dental and medical applications.

too late to buy d systems ddd stock
Source: 3D Systems Facebook
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What happened to 3D Systems stock?

On May 11, 3D Systems stock gained 35 percent and was up 0.3 percent in pre-market trading on May 12. The stock is rising after the company posted its earnings report for the first quarter. We can also attribute some of the gains to the bullish report from Craig-Hallum analyst Greg Palm. The analyst upgraded the stock to buy from hold and increased its target price to $29 from $27.

3D Systems stock has fallen 53 percent over the last three months, but has still risen 129 percent YTD.

3D Systems class-action lawsuit explained

A class-action lawsuit has been filed on behalf of 3D Systems investors who bought shares between May 6, 2020, and March 1, 2021, according to The Portnoy Law Firm. If you bought 3D Systems stock during the mentioned period, you might be entitled to compensation without incurring any out-of-pocket expenses under a contingency fee agreement. Investors have until June 8, 2021, to participate in this litigation. The lawsuit alleges that the defendants made misleading and/or false statements during this period.

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too late to buy d systems ddd stock
Source: Koyfin

DDD Stock Price

3D Systems stock forecast and Reddit discussion

According to MarketBeat, analysts' average target price is $26.50 for 3D Systems stock, which is 10 percent above its current price. Among the seven analysts tracking 3D Systems, one recommends a buy, five recommend a hold, and one recommends a sell. Their highest target price of $31 is 29 percent above the stock's current price, while their lowest target price of $18 is 25 percent below. 3D Systems stock isn’t among the most active stocks on the Reddit forums.

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3D Systems stock is a good investment.

3D Systems stock looks like a good investment based on its growth outlook. The company’s first-quarter results reflect good progress in its turnaround efforts. The 3D printing market is still in its early stages and can grow rapidly as the market expands. The global 3D printing market size is expected to reach $34.8 billion in 2024 compared to $9.9 billion in 2018. The analysts polled by TIKR expect 3D Systems’ net sales to increase by 5 percent and 6 percent, respectively, in 2021 and 2022.

ARK Investment Management CEO Cathie Wood owns shares of 3D Systems. The Ark Autonomous Technology and Robotics ETF (ARKQ), which Wood backs, owns 3.1 million shares of DDD worth $76 million.

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Should you buy 3D Systems stock?

3D Systems stock trades at a NTM EV-to-sales multiple of 4.9x, which looks undervalued compared with other 3D printing stocks. Proto Labs (PRLB) and Materialise NV (MTLS) have multiples of 5.2x and 5.4x, respectively.

The best price to buy 3D Systems stock

3D Systems stock looks poised to keep rising with the growing demand for 3D printing. Analysts' average price forecast suggests DDD stock has minimal upside potential. It looks best to buy at around its 200-day moving average of $17.

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