3D Systems Corporation (DDD), ExOne Co (XONE), Stratasys, Ltd. (SSYS): A Dicey Opportunity?

Company Performance

3D Systems Corporation (NYSE:DDD) has a market cap of $4.15 billion. Most impressive, however, is its price to earnings (P/E) ratio of 67.1, meaning its stock is highly overvalued due to great demand. Its stock price has shown consistent upward movement over the past year. Introductions of new products gave the company a 31% increase in revenue in Q1 2013.

Stratasys, Ltd. (NASDAQ:SSYS) has a slightly lower market cap of $3 billion. Strong worldwide demand has caused a 118.2% growth in its revenue in Q1 2013. ExOne Co (NASDAQ:XONE) has the smallest market cap of $0.57 billion among these three and reported an increased loss along with increased revenue in Q1 2013 – $7.9 million compared to $2.7 million in Q1 2012.

Conclusion

Apparently, Wall Street is waiting until 3D printing becomes more acceptable. This is manifested in the slightly bearish sentiment for this sector despite impressive gains. 3D Systems Corporation (NYSE:DDD), Exone, and Stratasys are the exceptions with consistent upward trends.

Such undervaluation does present an opportunity for proactive investment into a sector that is presently undervalued.

Mike Thiessen has no position in any stocks mentioned. The Motley Fool recommends 3D Systems, Stratasys, and The ExOne Company. The Motley Fool owns shares of 3D Systems and Stratasys and has the following options: Short Jan 2014 $36 Calls on 3D Systems and Short Jan 2014 $20 Puts on 3D Systems. Mike is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 3D Printing: Dicey Opportunity? originally appeared on Fool.com is written by Mike Thiessen.

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