Please ensure Javascript is enabled for purposes of website accessibility

Why 3D Systems Corporation's Shares Jumped 12% Today

By Travis Hoium – May 8, 2017 at 4:31PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Two new products could boost 3D Systems' business long term.

What happened

Shares of 3D Systems Corporation (DDD -2.99%) jumped as much as 11.5% in trading on Monday after announcing two new products. At 3:30 p.m. EDT shares were still trading 11% higher. 

So what

3D Systems said it began shipping 3DXpert software with direct metal printers, which it said can lead to 40% productivity gains and a 75% reduction in processing time. The goal is to allow customers to use a single software solution instead of multiple pieces of software to create parts.

Rendering of a 3D part on CAD.

Image of the software 3D Systems is bringing to customers to offer a single software solution. Image source: 3D Systems.

It also introduced a multi-material ProJet MJP 5600 3D printer that's expected to lower costs and improve speed for customers. The new printer also brings larger form factors, allowing an even wider array of parts.

Now what

Both of these new products are big steps forward in making 3D printing more mainstream. Multi-material parts are a key advancement for the industry and metals are going to be the next growth market for 3D Systems. It'll take some time before these new products begin impacting financial results, but if they live up to management's statements in press releases today they could be game changers long term.

Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends 3D Systems. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.