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3D Systems Down 64% YTD: How Should Investors Play the Stock?
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3D Systems’ (DDD - Free Report) shares have plunged 63.6% year to date (YTD) compared with the broader Zacks Computer and Technology sector’s return of 17.6%.
The underperformance can be attributed to challenging macroeconomic conditions, weak customer demand and stiff competition.
In second-quarter 2024, DDD generated revenues of $113.3 million, down 11.7% year over year. The downtick was mainly due to reduced printer sales from macroeconomic challenges affecting hardware demand, partly offset by growth in materials and services.
However, 3D Systems’ advancements in additive manufacturing, including larger printer sizes, increased speed and reliability, are driving mass customization and attracting major players across various industries.
Hence, investors should ask this question — does the massive dip offer a good investment opportunity in DDD stock?
Will DDD’s Expanding Portfolio Aid Prospects?
3D Systems recently announced that the U.S. Food and Drug Administration (FDA) granted 510(k) clearance for its TOTAL ANKLE Patient-Matched Guides, designed for use with Smith+Nephew’s SALTO TALARIS Total Ankle Prosthesis and CADENCE Total Ankle System.
The advanced solutions leverage individualized pre-surgical planning and 3D-printed, patient-specific instruments to enhance implant alignment and sizing in total ankle replacement surgeries.
The recent announcement underscores 3D Systems' leadership in personalized medicine, expanding its expertise beyond craniomaxillofacial applications to large joints and trauma environments, driving innovation in the rapidly-growing global orthopedic devices market.
The latest FDA clearance will help 3D System expands its expertise in orthopedic applications. DDD is capitalizing on robust growth in the orthopedic devices market, which is expected to see a CAGR of 11.2%, reaching $5.3 billion by 2032.
To bolster its additive manufacturing capabilities in July, 3D Systems and Precision Resource announced a strategic partnership to enhance additive manufacturing capabilities, integrating 3D Systems DMP technology to accelerate the production of critical components.
3D Systems also announced that NAMI, in collaboration with the Saudi Electricity Company, deployed multiple 3D Systems 3D printing technologies to localize spare parts production, aiming to enhance efficiency and reduce costs in the energy sector.
DDD Suffers From Persistent Headwinds
Despite its robust portfolio, macroeconomic and geopolitical uncertainties have been a concern. Persistent inflation has kept customer budgets under pressure.
For 2024, DDD projects non-GAAP revenues to be between $450 million and $460 million. The Zacks Consensus Estimate for revenues is pegged at $454.77 million, indicating a 6.82% decline year over year.
The Zacks Consensus Estimate for earnings is pegged at a loss of 20 cents per share, increased by 150% in the past 30 days.
DDD Stock – Buy, Sell or Hold?
DDD stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
The forward 12-month Price/Sales ratio for DDD stands at 0.63X, higher than its Zacks Computer - Mini computers sector’s 0.59X, reflecting a stretched valuation.
3D Systems currently carries Zacks Rank #4 (Sell), suggesting investors stay away from the stock at present.
Image: Bigstock
3D Systems Down 64% YTD: How Should Investors Play the Stock?
3D Systems’ (DDD - Free Report) shares have plunged 63.6% year to date (YTD) compared with the broader Zacks Computer and Technology sector’s return of 17.6%.
The underperformance can be attributed to challenging macroeconomic conditions, weak customer demand and stiff competition.
In second-quarter 2024, DDD generated revenues of $113.3 million, down 11.7% year over year. The downtick was mainly due to reduced printer sales from macroeconomic challenges affecting hardware demand, partly offset by growth in materials and services.
However, 3D Systems’ advancements in additive manufacturing, including larger printer sizes, increased speed and reliability, are driving mass customization and attracting major players across various industries.
3D Systems Corporation Price and Consensus
3D Systems Corporation price-consensus-chart | 3D Systems Corporation Quote
Hence, investors should ask this question — does the massive dip offer a good investment opportunity in DDD stock?
Will DDD’s Expanding Portfolio Aid Prospects?
3D Systems recently announced that the U.S. Food and Drug Administration (FDA) granted 510(k) clearance for its TOTAL ANKLE Patient-Matched Guides, designed for use with Smith+Nephew’s SALTO TALARIS Total Ankle Prosthesis and CADENCE Total Ankle System.
The advanced solutions leverage individualized pre-surgical planning and 3D-printed, patient-specific instruments to enhance implant alignment and sizing in total ankle replacement surgeries.
The recent announcement underscores 3D Systems' leadership in personalized medicine, expanding its expertise beyond craniomaxillofacial applications to large joints and trauma environments, driving innovation in the rapidly-growing global orthopedic devices market.
The latest FDA clearance will help 3D System expands its expertise in orthopedic applications. DDD is capitalizing on robust growth in the orthopedic devices market, which is expected to see a CAGR of 11.2%, reaching $5.3 billion by 2032.
To bolster its additive manufacturing capabilities in July, 3D Systems and Precision Resource announced a strategic partnership to enhance additive manufacturing capabilities, integrating 3D Systems DMP technology to accelerate the production of critical components.
3D Systems also announced that NAMI, in collaboration with the Saudi Electricity Company, deployed multiple 3D Systems 3D printing technologies to localize spare parts production, aiming to enhance efficiency and reduce costs in the energy sector.
DDD Suffers From Persistent Headwinds
Despite its robust portfolio, macroeconomic and geopolitical uncertainties have been a concern. Persistent inflation has kept customer budgets under pressure.
For 2024, DDD projects non-GAAP revenues to be between $450 million and $460 million. The Zacks Consensus Estimate for revenues is pegged at $454.77 million, indicating a 6.82% decline year over year.
The Zacks Consensus Estimate for earnings is pegged at a loss of 20 cents per share, increased by 150% in the past 30 days.
DDD Stock – Buy, Sell or Hold?
DDD stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
The forward 12-month Price/Sales ratio for DDD stands at 0.63X, higher than its Zacks Computer - Mini computers sector’s 0.59X, reflecting a stretched valuation.
3D Systems currently carries Zacks Rank #4 (Sell), suggesting investors stay away from the stock at present.
Top-Ranked Stocks
AudioEye (AEYE - Free Report) , Aspen Technology (AZPN - Free Report) and Badger Meter (BMI - Free Report) are some better-ranked stocks in the broader sector. AudioEye and Aspen Technology currently sport Zacks Rank #1 (Strong Buy) at present, whereas Badger Meter carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AudioEye's shares have gained 288.2% in the year-to-date period. The long-term earnings growth rate for AEYE is pegged at 25%.
Aspen Technology’s shares have gained 2.3% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 13.12%.
Badger Meter’s shares have gained 32% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 17.91%.