3D Systems (DDD) Down In Early Morning Trading

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 3D Systems ( DDD) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified 3D Systems 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 $314.5 million.
  • DDD traded 11,762 shares today in the pre-market hours as of 8:08 AM.
  • DDD is down 4.4% today from yesterday's close.

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More details on DDD:

3D Systems Corporation, through its subsidiaries, operates as a provider of 3D printing centric design-to-manufacturing solutions in the United States, Germany, the Asia-Pacific, and other European countries. DDD has a PE ratio of 136.7. Currently there are 10 analysts that rate 3D Systems a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for 3D Systems has been 4.6 million shares per day over the past 30 days. 3D Systems has a market cap of $6.2 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.63 and a short float of 32.7% with 5.94 days to cover. Shares are down 38.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates 3D Systems as a hold. 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 and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and premium valuation.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 2.2%. Since the same quarter one year prior, revenues rose by 44.7%. 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 0.02 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 3.66, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to its closing price of one year ago, DDD's share price has jumped by 38.71%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Computers & Peripherals industry and the overall market, 3D SYSTEMS CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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