Please ensure Javascript is enabled for purposes of website accessibility

Why 3D Systems, Stratasys, and ExOne Stocks All Popped Today

By Rich Smith - Jan 14, 2021 at 4:10PM

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

3D Systems is winning the stock market -- and this time, it's bringing some friends along for the ride.

What happened

3D printer maker 3D Systems (DDD -2.61%) rocked the stock market last week, preannouncing a huge revenue beat for its fiscal fourth quarter and watching its stock price double overnight in response.

After letting the stock coast higher for a few days on that news, investors began taking profits earlier this week -- but now they're back for a second bite at the apple, and 3D Systems shares are skyrocketing again, up 23.5% as of 3 p.m. EST.

Three colorful arrows racing straight up on a black background

Image source: Getty Images.

So what

It's not just 3D Systems shareholders who are having a good day today, either. Shares of rival 3D printer makers Stratasys (SSYS -4.04%) and ExOne (XONE) are up as well, rising 13.2% and 12.3%, respectively. Curiously, though, there doesn't appear to be a clear catalyst for any of these stocks moving higher today.

So what are we seeing here? Is this just momentum traders betting on which stock will become "the next 3D Systems" (and, apparently, guessing that it will be 3D Systems itself)?

Perhaps. There's certainly been enough momentum trading going on in the stock market these past several months for that to be the answer.

Now what

But there also could be another reason. Speaking at the 23rd Annual Needham Virtual Growth Conference yesterday, 3D Systems CEO Jeffrey Graves told investors that the additive manufacturing industry's "growth rates are projected to be very exciting" this year, with research suggesting sales could perhaps grow as much as 24%, according to a transcript prepared by SeekingAlpha.  

3D Systems has already enjoyed a rebound in the third quarter and as its recent preannouncement showed that momentum continued in the fourth quarter, which tends to back up the market research. Granted, it remains to be seen if Stratasys and ExOne will enjoy similar bumps. But because this 24% projection concerns the whole 3D printing industry, and not just 3D Systems, it would seem there really is a reason -- other than just plain momentum -- why 3D printing stocks are going up like fireworks all across the sector today.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

3D Systems Corporation Stock Quote
3D Systems Corporation
$10.09 (-2.61%) $0.27
Stratasys Ltd. Stock Quote
Stratasys Ltd.
$17.12 (-4.04%) $0.72
The ExOne Company Stock Quote
The ExOne Company

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

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