3D Systems Corporation (DDD) Attractive Buy At Current Level

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3D Systems Corporation (DDD) Attractive Buy At Current Level

3D Systems Corporation (NYSE:DDD) shares have shed a big chunk of their value recently. This recent sell-off presents a good opportunity for long term and new investors to buy 3D Systems stock, says a report from Seeking Alpha by IAEResearch.

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“The fear and panic in the market always create an opportunity for a savvy investor, and I believe the fall in the 3D Systems’ stock price has created a good opportunity to buy,” says the author.

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Technology gaining ground

It was noted that, from a fundamental perspective, the company has performed better, and also the company is looking to add more products to its portfolio, which would add to the fundamental growth of the business, believes the author.

Both 3D Systems Corporation (NYSE:DDD) and Stratasys are expected to post revenue of around $1 billion by the end of 2016. This implies that the technology is gradually gaining ground, and would be in the mainstream because companies like Adobe are incorporating the tools to help 3-D printing. With the major players like Adobe interested in the technology, it seems that the technology will be an important part of the industry very soon, according to the author. Firms specialized in this technology would surge further with a greater acceptance from the consumers and manufacturers.

3D Systems following acquisition strategy

3D Systems Corporation (NYSE:DDD) is moving ahead on its acquisition and partnership strategy, which is vital to its growth. Partnerships with companies such as Hershey’s and Hasbro reflects the interest that these big players are taking in the 3D technology printing. The 3D printing technology company recently bought Medical Modelling, which would give it a strong foothold in the medical devices and equipment business. Also, with the acquisition in the medical segment, the company has diversified its revenue stream. With the surge in the dental implants industry, 3D Systems Corporation (NYSE:DDD) will continue on the track of growth.

Apart from the companies, 3D Systems Corporation (NYSE:DDD) gets major revenue from the consumer segment as the hobbyist market is growing continuously, but high price keeps away the consumer from buying the printer for household work. If the prices of the technology come down it will affect the margins of the company in the short-term, but the material segment would draw benefits as the adoption rate in the consumer market will increase.

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Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com
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