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



How to Approach Sky-High 3-D Printing Valuations

Although 3-D printing stocks were some of the best performers in 2013, the same can't be said for 2014. Generally speaking, the entire sector has fallen out of favor with investors thanks to a slew of guidance revisions, renewing concerns that the sector is grossly overvalued. The icing on the cake was when 3D Systems (NYSE: DDD  ) warned that it's going to take a big earnings hit in 2014 because it's increasing some expenses related to growing its business with a long-term view.

With 3-D printing stocks now well off their all-time highs, investors may start to wonder what price is too high, and how to manage the risks associated with investing in a high-growth industry like 3-D printing. In the following video, 3-D printing analyst Steve Heller sits down with the head of Motley Fool's industrials bureau, Blake Bos, to discuss 3D Systems and ExOne  (NASDAQ: XONE  ) , and how to invest in a sector that's certain to have continued volatility and looks extremely expensive on paper. (The relevant video segment can be found between 5:33 and 9:04.)

One must-own stock in 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (3) | Recommend This Article (3)

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 February 07, 2014, at 1:30 PM, SkepikI wrote:

    Steve: A better idea would be "How to AVOID sky high 3 D printing valuations. Just think of all the money MF could have saved its members and readers by adopting that approach from DDD share value of oh, say $60/sh to $90/sh. Think how much more you can save them in the future by following that approach from now to ummm $30/sh ;-)

    No doubt this will come back to haunt me, but while interested in the sector, I refuse to take the risks involved in astronomical P/E and betting on ever higher valuations instead of earnings and execution. Of course, I'm not 30 anymore either, so this one I leave to the young who can recover from the risk. Until things get back to rationality in a good correction or outright crash.

  • Report this Comment On February 07, 2014, at 1:44 PM, SkepikI wrote:

    I did not watch your video, because I refuse to view videos with no transcripts, a continuing and serious problem with MF article policy in my view. So I will never know if your detailed points are worthy of consideration when values get back to rationality. Perhaps I am missing out, but I am quite stubborn about sticking to principals that serve me well, until forced to admit they no longer do. That persistence has saved me a bundle ($ and time) over the years.....

  • Report this Comment On February 14, 2014, at 3:11 AM, wildeweasel wrote:

    Yes, please put in transcripts for the videos. The audio is terrible, the picture quality is horrid, the load times are too long and, they talk to fast to follow properly. We are trying to get investing advice not buy a car. XONE is a terrible investment BTW.

Add your comment.

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: 2825972, ~/Articles/ArticleHandler.aspx, 8/31/2015 7:03:59 AM

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...

Steve Heller

Covering 3-D printing at the intersection of business, investing, and what it means for the future of manufacturing. Follow me on Twitter to keep up with the ever-changing 3-D printing landscape by clicking the button below.

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

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

8/28/2015 4:01 PM
DDD $13.48 Up +0.58 +4.50%
3D Systems CAPS Rating: ****
XONE $7.22 Up +0.14 +1.98%
ExOne CAPS Rating: ***