ExOne Co (NASDAQ:XONE) is likely the most speculative play in the sector with a recent IPO in February. ExOne Co (NASDAQ:XONE) reported revenue of $7.9 million for Q1 of 2013, versus revenue of $2.7 million for the prior year quarter. It should be noted that this revenue came upon sales of only five total machines. Thus, sales are extremely limited. Further, the company reported a first quarter net loss of $1.7 million. ExOne Co (NASDAQ:XONE)’s share price has jumped to a high of $51.88 since its debut but has dropped 14% in the last three days. The company has a short float of over 30%.
With regard to a more established company, albeit one that has encountered some recent trouble, Hewlett-Packard Company (NYSE:HPQ) may be a possible play for the 3D printing industry. Hewlett-Packard had entered into a distribution and manufacturing agreement with Stratasys, Ltd. (NASDAQ:SSYS), but that agreement was terminated in August of 2012. The company may have ended the agreement to pursue its own foray into the market. Some experts have opined that Hewlett-Packard Company (NYSE:HPQ) is optimally situated to profit from a boom in 3D printing due to its research and development budget of over $3 billion, as well as its extensive distribution networks. Hewlett-Packard Company (NYSE:HPQ)’s stock price has rebounded admirably from a low of $11.35 in November of 2012 to a recent price of $24.5, but is still below a multi-year high of $49.55 in 2010. The company seems to have stabilized after its recent management debacles.
Final thoughts
Stocks in the 3D printing sector are down significantly in the past week. It is too soon to tell whether this is a minor price correction, or whether it may be evidence of a longer-term trend. If it is a minor price correction, current prices may offer an opportunity for a good entry point. Still, investors should be wary of the high short interest and the volatile price swings for the companies in the sector, including the aforementioned 3D Systems Corporation (NYSE:DDD), Stratasys, ExOne and even Hewlett-Packard. For more on market-beating investing strategies, continue reading here.
The article Besides 3D Systems, What Other Stocks Should You Watch in This Space? originally appeared on Fool.com and is written by Meena Krishnamsetty.
This article is written by Joshua Reider and edited by Jake Mann. Insider Monkey’s Editor-in-Chief is Meena Krishnamsetty. They don’t own shares in any of the stocks mentioned in this article.
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. Meena is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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