Why Voxeljet, GoPro, and ExOne Are Today's 3 Best Stocks

The S&P 500 surges to an all-time record as Voxeljet, GoPro, and ExOne advance by double-digit percentages.

Jul 1, 2014 at 5:15PM

Milestone psychology appears to be taking over investors once again with all of the market's major indexes, including the broad-based S&P 500 (SNPINDEX:^GSPC), which vaulted to all-time record highs on relatively tame economic data.

Longview

The big report hitting the newswire today was the release of June's ISM Index. The monthly reading came in at 55.3, down fractionally from a reading of 55.4 in May, but also slightly below Wall Street's expectations. The data would imply that manufacturing is still expanding at a reasonable pace, but that it could be starting to slow a bit. This doesn't look like anything for investors to worry about for the time being, though it's odd the market would rally so extensively with ISM figures that came in below estimates.

In addition, construction spending for May also came in below expectations with an increase of 0.1% from April. This was markedly below the 0.8% expansion reported in April and the roughly 0.5% expansion that economists had expected. April's surge could certainly be tied to a boost in construction following abnormally cold weather in January and February, but the rapid slowdown in May, with lending rates again falling near 4%, is a bit disconcerting.

Despite generally mixed economic data, the S&P 500 wound up vaulting to a fresh all-time high of 1,973.32, up 13.09 points (0.67%).

Leading the charge higher was the entire 3-D printing sector, with Voxeljet (NYSE:VJET) and ExOne (NASDAQ:XONE) vaulting higher by 23.7% and 13.5%, respectively. The basis for the rise in the sector was twofold.

Images

First, the sector rallied on word of a potential bio-medical breakthrough. According to reports from VentureBeat and TechCrunch which picked up on results released about two months ago, a team of U.S. and Australian scientists were able to successfully "print" an artificial vascular network that was embedded in various forms of hydrogels to simulate a human body. 3-D printing stocks have already shown what they can do in terms of expediting the prototype stage for industrial companies, but their applications could spread well into the medical field.

Secondly, commentary from Angelo Zino at S&P Capital IQ ignited the sector with Zino noting that 3D Systems (NYSE:DDD), perhaps the best-known and most followed 3-D printing company, could be a prime takeover candidate. Both 3D Systems and Stratasys, the other major player, have made a number of small acquisitions over the years to beef up their geographic reach and product offering potential. Consolidation in the 3-D printing space certainly wouldn't be out of the question.

Images

As for me, while I view 3-D printing as a disruptive technology, I believe investors' emotions have gotten the better of them. Companies like 3D Systems and Voxeljet are currently valued at a whopping 34 and 52 times 2017's EPS estimates, while ExOne is trading at 61 times 2016's projections. Considering the ramp-up in competition and the emergence of this technology on a large scale toward what could be the end of a huge stock market rally, I'm inclined to think that the entire sector has more downside potential than upside at this point.

Also, shares of first-person viewpoint camera developer GoPro (NASDAQ:GPRO) catapulted higher for a fourth consecutive session, at one point doubling from its IPO offer price. Shares ended the day 20.4% higher despite no official commentary from Wall Street. When a company goes public there's a quiet period following its debut where Wall Street firms hold their official recommendations and coverage initiations. However, when this period is over it should be interesting to see if any firms are brave enough to come out with something equating to a "sell" rating for GoPro, which is pushing close to a $6 billion valuation.

Www
Source: Axion23, Flickr.

On one hand, GoPro is likely to maintain its premium in the near-term as gadgets of all forms -- in your house, in your car, or on your head while being active -- are extremely popular. But, over the long run it could be difficult for GoPro to keep its lofty valuation considering that it's in the extremely early stages of monetizing its brand-image on a social scale. The company will be selling ad space to diversify its revenue stream in the coming years, but it'll really need to streamline its brand through social media if it hopes to head even higher.

You can't afford to miss this
"Made in China" -- an all too familiar phrase. But not for much longer: There's a radical new technology out there, one that's already being employed by the U.S. Air Force, BMW, and even Nike. Respected publications like The Economist have compared this disruptive invention to the steam engine and the printing press; Business Insider calls it "the next trillion-dollar industry." Watch The Motley Fool's shocking video presentation to learn about the next great wave of technological innovation, one that will bring an end to "Made In China" for good. Click here!

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool owns shares of, and recommends 3D Systems, ExOne, Stratasys, and Nike. It also recommends BMW. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers