3D Printing a Better Bottom – Can It Build to $64?

Tomorrow, 3D Systems (DDD – NYSE) will deliver its Q1 report.

The analysts are expecting a 42% quarterly increase in revenue year over year, but a -29% drop in earnings, as the largest player in 3D printing (by market cap) continues its plan to sacrifice short-term profits to fuel long-term growth and market share.

DDD has already paid a -54% price for this growth plan. If management has increased sales and/or reduced these expected losses, DDD is in position for one heck of a rally.

Bottarelli Research Tip: Right now, DDD is setting up a nice double bottom at $43.68. If Wall Street is a buying mood tomorrow, it could launch DDD back toward its old highs at $97. However, that’s a bit of a moonshot — especially in a market that has been more than willing to sell winners when it’s in a bad mood. We advise aiming at DDD’s 61.8% retracement marker at $64.25. Frankly, 26% should be more than enough short-term gains for any stock player, and could easily drive speculative call options to 100% gains.

By Bottarelli Research 

Monday, April 28, 2014