Stock Market Today: 3D Systems’ Sales Bounce and Mattel’s $460 Million Deal

Why 3D Systems, Mattel, and Pepco stocks are on the move today.

Feb 28, 2014 at 9:00AM

Investors can expect a flat start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) has lost a moderate 13 points in pre-market trading. Global markets were flat in overnight trading despite the new record high that the S&P 500 logged yesterday.

Next up on the economic calendar is the February reading on consumer confidence from the Conference Board. That report is expected to show that consumers are still relatively pessimistic about the job market, but have a better outlook on the economy and on their current financial positions. Economists expect the confidence number to clock in at 82 out of 100 -- roughly equal to last month's result -- when it is released at 9:55 a.m EST.

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including 3D Systems (NYSE:DDD), Mattel (NASDAQ:MAT), and Pepco (NYSE:POM).

3D Systems said this morning that fourth-quarter revenue grew by 52% to $155 million, exactly what the company had guided to in its preliminary forecast earlier this month. Sales of 3-D printing products leapt by 76% in the quarter, but printing materials and other categories increased at a slower sales pace, which held back overall growth. Still, the company's gross profit margin was steady at 52% and organic growth came in stronger than expected at 34%. 3D Systems also affirmed its revenue forecast for 2014 of $700 million, which would represent a nearly 40% increase from last year's result. Shares are up 1.4% in pre-market trading.

Mattel announced today that it is buying the Canadian toy company Mega Brands for $460 million. For that price, Mattel gets a dominant player in the $4 billion construction building sets toy category, along with a promising group of brands in the $2 billion arts and crafts category. Mattel doesn't appear to have overpaid for these assets, either: It is buying the company for less than 10 times Mega Brands' 2013 profit and slightly more than one times sales. Mattel's stock is up 1.1% in pre-market trading.

Finally, Pepco this morning booked fourth-quarter earnings of $0.23 a share, slightly above the $0.21 that analysts expected. Upgrades to the electric utility's infrastructure allowed it to lower the number and duration of power outages customers saw in the year, which drove rates higher. Pepco said that it expects earnings in 2014 to rise by about 5% to $1.20 a share, which is even with Wall Street's projections. The stock is unchanged in pre-market trading.

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Demitrios Kalogeropoulos owns shares of 3D Systems. The Motley Fool recommends 3D Systems and Mattel. The Motley Fool owns shares of 3D Systems and Mattel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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