Is Today the Day to Buy 3D Systems for Cheap?

Is today's sell-off cause for concern for 3D Systems investors, or the perfect time to dive in?

Mark Reeth
Mark Reeth and Simon Erickson
Apr 29, 2014 at 3:01PM
Industrials

3D Systems (NYSE:DDD) saw its shares dented on Tuesday, down as much as 9% after the company released earnings. While sales of the company's actual printing systems were up 53% this quarter, sales of its higher-margin printing materials were not as impressive. That imbalance damaged the company's overall margins, compressing the bottom line.

In today's "Stock of the Day", Motley Fool analyst Simon Erickson says he's bullish on 3D Systems' prospects. He sees big initiatives being undertaken at the company at the moment, largely aimed at the consumer side of 3-D printing. Simon looks into 3D Systems' partnership with Google on its Project Ara, the modular cell phone project that could allow consumers to upgrade individual parts of their smartphones rather than buying entirely new and expensive ones. He also discusses one new way for consumers that may never have been exposed to 3-D printing to access the ability to print with several different materials.

So, after today's pullback, and considering the company's new ventures on the horizon, should investors consider buying today? Simon thinks so. He sees more and more data emerging that 3-D printing is a legitimate industry that is here to stay, and believes 3D Systems is well placed to compete in that market.