Wednesday December 05, 2012
by Leo Fasciocco, editor Ticker Tape Digest3-D Systems Corp. (
DDD) makes 3-d modeling systems for manufacturers; annual revenues are $322 million. The stock is a market leader, appreciated 200% over the last 12 months versus an 18% gain for the S&P 500.
Its systems and materials reduce the time and cost of designing products and facilitate direct and indirect manufacturing by creating actual parts directly from digital input.
The stock trading in a range from 2000 to 2010 -- for a decade. - It then made a key long-term breakout in 2010 at $10 and has since quadrupled.
The stock was first highlighted as a breakout idea in November, but the shares faded back into the base. Now the stock is reemerging with a significant expansion in volume. Its new push to a new high could bring in more buying.
DDD filed a suit against Formlabs and Kickstarter for patent infringement. The patent deals with stereolithography processing. The patent suit is a question market and probably will take time to resolve.
Meanwhile, DDD's earnings outlook is strong. This year, analysts are forecasting a 53% surge in net to $1.16 a share from 76 cents a year ago. Going out to 2013, the Street looks for a 24% gain in net to $1.44 a share from the anticipated $1.16 this year.
We rate DDD a very good intermediate-term play provided earnings remain on course. We are targeting the stock for a move to $56. A protective stop can be placed near $43 after a breakout.
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