Since the hype of 3D printing in late 2020, many of these 3D printing companies stock prices have retreated substantially from their peak. Is it a time to buy?
3D Systems Corporation (DDD) was trading as high as $56.50 in Feb 2021 before pulling back to a low of $17.47 just three months later. The recent quarterly earnings announcement surpasses every analysts’ expectations by turning in a $0.17 per share. Will it continue to improve its earnings?
Jeffrey Graves, CEO of 3D Systems, said through Q1 2021, their new products and applications are gaining momentum. Many of the latest applications, ranging from medical devices to the manufacture of semiconductor chips, are growing rapidly.
In my opinion, it seems to be the case as technology in 3D printing revolutionise.
DESKTOP METAL Inc. (DM) is another high potential 3D printing company that focuses on metal 3D printing and carbon fibre 3D printing for engineers, designers and manufacturers. However, Desktop Metal last Q4 earnings were disappointing. It missed the revenue estimate by a relatively huge margin -$0.57 (actual) vs -$0.41 (estimate consensus). As a result, DM current stock price of $12.13 is a far cry from the high of $34.94 in Feb 2021. Will Desktop Metal turn around? Let us keep an eye on its quarterly earnings on 17 May.
Overall, I think 3D printing is still an evolving sector with plenty of room to grow in 3D printing technology. I have got no doubt that there’s massive potential for investors but plenty of patience is required. Thus I think investors with an eye for the future could consider allocating some funds into this sector timely.
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Ultimate Investing contributor Ivan L owns shares in 3D Systems Corporation and Desktop Metal, Inc. Disclaimer: What is shared and written here is solely the views and opinions. The article does not consider your risk or financial portfolio, nor does it constitute any financial advice or recommendation. Should you take any action or trade any of the stocks mentioned, you are solely and entirely responsible for any outcome. It is your responsibility to do your due diligence at all times.