NEW YORK (TheStreet) -- 3D Systems (DDD) was falling 4.9% to $64.01 Monday following a Barron's cover story that featured the 3D printer maker and warned against investing in the 3D printing industry.
The cover story, titled "Beware 3-D Printing!" warns against investing in 3D printing stocks, saying they seem overvalued based on earnings and sales metrics. Barron's suggests that shares of3D Systems could fall as much as 80% and still be overvalued.
While criticism of 3D printing shares isn't new, the article seemed to cause many to sell their shares of 3D Systems. More than 4.8 million shares of the company were traded by 11:30 a.m.
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TheStreet Ratings team rates 3D SYSTEMS CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate 3D SYSTEMS CORP (DDD) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, growth in earnings per share, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."