Why 3D Systems, Brady, and Gogo Jumped Today

Thursday brought modest gains in the stock market, adding to yesterday's big climb. But these stocks did a whole lot better than the broader market. Find out more about what made them soar.

May 22, 2014 at 8:05PM

On Thursday, investors generally stayed in an upbeat mood, adding to yesterday's impressive gains as most market participants remain convinced that the U.S. economy is on a generally upward trajectory. Although the gains today were more modest than Wednesday's advance, many individual stocks posted sharper advances on favorable news either for those companies specifically or for their broader industry groups. Among the best performers Thursday were 3D Systems (NYSE:DDD), Brady (NYSE:BRC), and Gogo (NASDAQ:GOGO).

Source: 3D Systems.

3D Systems climbed 8% on a strong day for the entire 3-D printing space. The company announced that it will present at a design and manufacturing show in New York, but what probably moved the stock were positive comments from an industry analyst concerning one of 3D Systems' chief rivals. Although some could argue that what's good for 3D Systems' competitors is bad for 3D Systems itself, investors apparently disagreed, believing that reaffirmation of the growth potential of the consumer-printing industry could help the entire 3-D printing community build up positive momentum. After such a long and painful decline in recent months as investors have reassessed their views on former high-flying momentum stocks, 3D Systems seemed poised for a bounce. As more people get familiar with 3-D printers -- no matter who makes them -- demand should increase industrywide.

Brady jumped 15% after the maker of workplace-safety products and identification-tag technology reported solid results in its fiscal third quarter. Organic sales climbed 2.5%, and although net earnings from continuing operations were down about 7% from year-ago levels, Brady was pleased to see its struggling safety business show signs of finally hitting bottom. With expectations for low single-digit organic sales growth in the current quarter, Brady shareholders have to be pleased at the prospects that it could execute a successful turnaround.


Source: Gogo.

Gogo rose almost 8% after the provider of in-flight Wi-Fi access got the appropriate regulatory approval from the FAA and from Japan's Civil Aviation Bureau to install its equipment on 767-300 aircraft. The approval represents just one of more than 60 different types of aircraft on which Gogo has permission to install in-flight networking equipment, and once Gogo adds the 737-800 to its list of approved aircraft, it will have the ability to install its equipment on the entire fleet of major airline partner Japan Airlines. Even though Gogo faces the threat of competition from a much larger U.S. wireless carrier as early as late 2015, incremental victories like this show the barriers to entry that any new player in the industry will face in order to catch up with Gogo.

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Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends 3D Systems and BMW and owns shares of 3D Systems. Try any of our Foolish newsletter services free for 30 days. 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.

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.

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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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