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3D Systems(DDD - Free Report) is a leading provider of 3D printing solutions, offering a range of products and services for the manufacturing, healthcare, aerospace, automotive, and consumer goods industries. The company specializes in additive manufacturing technologies, including 3D printers, materials, software, and on-demand manufacturing services.
Several years ago, the hopes of 3-D printing and its numerous applications were very high, and the industry saw a huge boom. Stocks in the sector experienced massive price appreciation with 3D Systems leading the way.
However, the big promises of the industry never materialized, the stocks became grossly overvalued, and the hype has since fizzled. 3D systems stock has fallen -91% over the last four years, and business fundamentals continue to deteriorate.
Additionally, the stock currently has declining earnings estimates and a Zacks Rank #5 (Strong Sell) rating. Based on the murky outlook for 3D Systems, I believe it should be avoided.
Image Source: TradingView
Poor Business Fundamentals
Following a brief pickup in sales at 3D Systems about a decade ago, sales have fallen significantly. After peaking around $700 million annually, they have declined to less than $500 million in the trailing 12 months.
Image Source: Zacks Investment Research
Profits at the technology company have suffered as well. After showing positive earnings for a few years, they flipped negative in 2017 and have not recovered.
Image Source: Zacks Investment Research
Earnings Revision Trend
Analysts are not expecting much from DDD in the coming quarters and years either. Over the last two months earnings estimates have been lowered across timeframes. Based on the consistently falling earnings revision trend, 3D Systems has a Zacks Rank #5 (Strong Sell) rating.
Image Source: Zacks Investment Research
Bottom Line
Things do not look good for 3D Systems. Falling sales and earnings is not what you see in winning stocks.
It is worth noting that DDD’s balance sheet is not bad, and they are still a leader in the 3d printing industry. If we were to see a resurgence in printing applications and sales and earnings pick up, DDD could be worth revisiting.
But, until the earnings revisions trend picks up, 3D Systems stock is best to be avoided for now.
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Bear of the Day: 3D Systems (DDD)
3D Systems (DDD - Free Report) is a leading provider of 3D printing solutions, offering a range of products and services for the manufacturing, healthcare, aerospace, automotive, and consumer goods industries. The company specializes in additive manufacturing technologies, including 3D printers, materials, software, and on-demand manufacturing services.
Several years ago, the hopes of 3-D printing and its numerous applications were very high, and the industry saw a huge boom. Stocks in the sector experienced massive price appreciation with 3D Systems leading the way.
However, the big promises of the industry never materialized, the stocks became grossly overvalued, and the hype has since fizzled. 3D systems stock has fallen -91% over the last four years, and business fundamentals continue to deteriorate.
Additionally, the stock currently has declining earnings estimates and a Zacks Rank #5 (Strong Sell) rating. Based on the murky outlook for 3D Systems, I believe it should be avoided.
Image Source: TradingView
Poor Business Fundamentals
Following a brief pickup in sales at 3D Systems about a decade ago, sales have fallen significantly. After peaking around $700 million annually, they have declined to less than $500 million in the trailing 12 months.
Image Source: Zacks Investment Research
Profits at the technology company have suffered as well. After showing positive earnings for a few years, they flipped negative in 2017 and have not recovered.
Image Source: Zacks Investment Research
Earnings Revision Trend
Analysts are not expecting much from DDD in the coming quarters and years either. Over the last two months earnings estimates have been lowered across timeframes. Based on the consistently falling earnings revision trend, 3D Systems has a Zacks Rank #5 (Strong Sell) rating.
Image Source: Zacks Investment Research
Bottom Line
Things do not look good for 3D Systems. Falling sales and earnings is not what you see in winning stocks.
It is worth noting that DDD’s balance sheet is not bad, and they are still a leader in the 3d printing industry. If we were to see a resurgence in printing applications and sales and earnings pick up, DDD could be worth revisiting.
But, until the earnings revisions trend picks up, 3D Systems stock is best to be avoided for now.