Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified 3D Systems Corporation as such a stock due to the following factors:
- DDD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $164.6 million.
- DDD has traded 10.4 million shares today.
- DDD is down 3.1% today.
- DDD was up 7.1% yesterday.
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More details on DDD:
3D Systems Corporation, through its subsidiaries, develops, manufactures and markets 3D printers, print materials, on-demand custom parts services, and 3D authoring solutions for professionals and consumers. DDD has a PE ratio of 110.1. Currently there are 5 analysts that rate 3D Systems Corporation a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for 3D Systems Corporation has been 3.7 million shares per day over the past 30 days. 3D Systems has a market cap of $4.9 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 2.12 and a short float of 31.3% with 8.57 days to cover. Shares are up 36.2% year to date as of the close of trading on Friday.
rates 3D Systems Corporation as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 44.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- DDD's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.11, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Computers & Peripherals industry average. The net income increased by 12.2% when compared to the same quarter one year prior, going from $8.32 million to $9.34 million.
- The gross profit margin for 3D SYSTEMS CORP is rather high; currently it is at 57.89%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, DDD's net profit margin of 7.73% significantly trails the industry average.
- Compared to its closing price of one year ago, DDD's share price has jumped by 72.29%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full 3D Systems Corporation Ratings Report.