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The Zacks Analyst Blog Highlights: ExOne, 3D Systems, Stratasys and Voxeljet

For Immediate Release

Chicago, IL - November 13, 2015 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include ExOne Company ( XONE ), 3D Systems Corp. ( DDD ), Stratasys Ltd. ( SSYS ) and Voxeljet AG ( VJET ).

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Here are highlights from Thursday's Analyst Blog:

3D Printing Stocks Near 52-Week Lows: Time to Buy?

The broader U.S. equity market marginally dipped on Wednesday with persistent uncertainty over the outlook for the Chinese economy and the closure of the U.S. Treasury market for the Veterans Day. Another probable reason was the further decline in oil prices , which hit catastrophic lows in August this year.

Bringing in no surprises this time, 3D printings stocks also reacted on par with market sentiments. The biggest losers in the sector were The ExOne Company ( XONE ), which declined 6.8% yesterday, followed by 3D Systems Corp. ( DDD ) (down 6.1%), Stratasys Ltd. ( SSYS ) (down 5.2%) and Voxeljet AG ( VJET ) (down 3.9%).

Notably, 3D Systems and Stratasys dipped to new 52-week lows touching $8.89 and $23.73, respectively, to close at $9.05 and $23.97 (as of Nov 11, 2015). Peers ExOne and Voxeljet are also currently trading near their 52-week low benchmark.

Despite the downtrend, these 3D printing stocks appear to be solid bets.

The Logic

Many investors are prone to dumping stocks hovering around their year-long lows, without considering the rationale that such stocks might have tumbled over the past for various reasons, be they company-specific or macroeconomic. Logically, the shudder in stock markets made these stocks reel.

Nonetheless, low valuations do not always mean that the stock has lost all potential. The market, as commonly known, has a propensity to overreact to both good and bad news, resulting in random stock price movements that do not always rightly match up with the company's long-term fundamentals.

Going with the same logic, we believe the strong long-term prospects of the 3D printing industry make these stocks a 'must buy' in the current scenario.

3D Printing Industry - Growth Catalysts

3D technology has the potential to revolutionize manufacturing and enliven the commercial and professional space. Various companies, ranging from hospital managers to car markers, are now opting for varied 3D solutions to address simple make-to-stock orders to complex, engineer-to-order production strategies.

Apart from aerospace and defense, the trillion-dollar oil & gas industry has emerged as a prospective end-market for 3D printing. Presently, 3D technology is applied to provide customized plastic items, like 3D-printed tissue and organs, metal parts for cars and jet engines, to name a few.

According to a report released by Canalys in September 2015, 3D printer shipments on a global level jumped 52% in the first half of 2015 on a year-over-year basis on the back of robust demand among both consumers and businesses. Overall, the sales of 3D printers and associated materials and services rose by 20% to about $1.8 billion in the first half of this year.

Figures Promising Bright Prospects

Experts have immense faith in the future potential of this technology and expect it to become a viable alternative across several market segments. According to Wohlers Report 2014, the worldwide 3D printing industry is expected to grow from $3.07 billion in revenue in 2013 to $12.8 billion by 2018, and exceed $21 billion in worldwide revenue by 2020 with a CAGR of 34%.

Notably, automotive consumer products, government and defense, industrial/business machines, education research, and others (arts and architecture) sectors are expected to raise the demand for 3D printing products. According to a report by Technavio, the worldwide 3D printing market in the electronics industry is expected to rise at a CAGR of 18.94% over the period 2014-2019.

Also, Technavio predicts global 3D printing demand to rise over 45% from 2014-2019, with revenues collection from education industry touching $2,321.65 million by 2019.

In order to capitalize on the industry's robust prospects and consolidate their market share, some 3D firms have been executing strategic acquisitions to take 3D printing to a completely new level. They are increasingly focusing on diversifying their offerings, adding synergistic technology and expanding their domain expertise across cross-industry continuum. Established players like 3D Systems and Stratasys have been pretty much leading with their spree of aggressive acquisitions and product launches.

Bottom-Line

We believe that as 3D printing begins to permeate across more sectors, the time is ripe for investors to enter the arena and ride the impending wave of growth. Moreover, the entry of new players will act as a catalyst for the industry and has the potential to redefine market dynamics. In fact, this has catapulted the spending on research and development at various smaller or rival 3D printing companies.

Investors should watch out for the 3D printing space, as the industry seems to be on the brink of a major transformation, with expanding end markets, burgeoning applications for the technology and rising new players. So isn't this the right time to cash in on some premium 3D stocks?

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EXONE CO/THE (XONE): Free Stock Analysis Report

3D SYSTEMS CORP (DDD): Free Stock Analysis Report

STRATASYS LTD (SSYS): Free Stock Analysis Report

VOXELJET AG-ADR (VJET): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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