Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



1 Stock to Buy for March

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Earlier this week, I introduced Fools to five different companies I was considering adding to my Roth IRA. Today, I'll be revealing that pick, as well as explaining why the other four companies didn't quite make the cut. At the end, I'll offer up access to a special premium report on one of the companies.

Trying not to dip back in too soon
I have nothing wrong with following Peter Lynch's adage that sometimes, the best stock to buy is the one that you already know. Sometimes, though, I like to space out the timing of my buys to make sure I'm not overcommitting to one stock. A little bit of time also helps add some perspective when evaluating a stock's potential.

So although I think Baidu (NASDAQ: BIDU  ) appears to be a really great deal right now, I'm going to have to pass this month. In the 18 months that I've been calling out my monthly buys, I've chosen Baidu three of those times, and it makes up over 15% of that portfolio. Even though I think worries about Baidu's competition with Qihoo 360 and slowing growth are overblown, adding more at this point simply wouldn't be prudent.

I'm more or less using the same excuse for passing on Whole Foods (NASDAQ: WFM  ) and IPG Photonics (NASDAQ: IPGP  ) .

With Whole Foods, I think last month's sell-off was a little overblown, as the fundamental story remains firmly intact. With same-store sales still growing at impressive -- if slightly lower -- rates and only one-third of the total number of stores built out, I think there's a lot more to the Whole Foods story. However, I bought shares of the company for my Roth IRA just last month, and think waiting it out right now is a good idea.

IPG, on the other hand, is far and away the best in business when it comes to the disruptive innovation of fiber-optic lasers. My reasons for avoiding the company for this month are twofold. First, as with all the others, I've already bought a position in IPG for my Roth. And second, I'm no rocket scientist when it comes to lasers, and to be brutally honest, I might have a tough time spotting the next disruptive innovator that might displace fiber optics.

Which leaves us with two 3-D printing companies
So after winnowing down the candidates, I am left with 3D Systems (NYSE: DDD  ) and Stratasys (NASDAQ: SSYS  ) , leaders of the 3-D printing duopoly. While I like both of these companies very much, when it comes to picking a favorite, I actually think it's pretty easy: My choice is Stratasys.

For starters, I like how Stratasys has historically shown more restraint when it comes to growth by acquisition. While the merger with Objet earlier this year was a big one, I think it was a really smart one. Outside of that, Stratasys' history of acquisitions and mergers is much shorter and focused than that of 3D Systems.

Stratasys is expected to come out with earnings next week. I'm aware that a stock trading at 73 times earnings could easily disappoint just by meeting expectations, as 3D Systems recently did. So it's important to make it known that while I'll be keeping track of my public returns as of today's publishing, I'm not allowed to buy shares until two days following this article -- meaning I could get a significantly cheaper, or more expensive, buying price.

Either way, I think the potential for 3-D printing is real, and that it's more than worth buying into in small portions right now.

If you disagree with my decision to pick Stratasys over 3D Systems, then it's time to read up on whether 3D Systems is a buy right now. In our special premium report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell, and receive a full year of analyst updates with the report. To start reading, simply click here now for instant access.

Read/Post Comments (1) | Recommend This Article (14)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 04, 2013, at 6:48 AM, stonekey610 wrote:

    In what area does Baidi competes with Qihoo 360? They are companies in two different businesses in my opinion.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2287920, ~/Articles/ArticleHandler.aspx, 9/27/2016 4:59:04 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:00 PM
SSYS $23.04 Up +0.08 +0.35%
Stratasys CAPS Rating: ****
BIDU $190.83 Up +1.97 +1.04%
Baidu CAPS Rating: *****
DDD $17.14 Up +0.28 +1.66%
3D Systems CAPS Rating: ****
IPGP $83.03 Up +0.51 +0.62%
IPG Photonics CAPS Rating: *****
WFM $28.46 Down -0.19 -0.66%
Whole Foods Market CAPS Rating: ****