Trade-Ideas LLC identified 3D Systems ( DDD) as a "perilous reversal" (up big yesterday but down big today) 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 $54.5 million.
  • DDD has traded 1.9 million shares today.
  • DDD is down 3% today.
  • DDD was up 6.3% yesterday.

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More details on DDD:

3D Systems Corporation, through its subsidiaries, provides 3D printing products and services worldwide. Currently there is 1 analyst that rates 3D Systems a buy, 3 analysts rate it a sell, and 10 rate it a hold.

The average volume for 3D Systems has been 3.8 million shares per day over the past 30 days. 3D Systems has a market cap of $1.4 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 1.58 and a short float of 25% with 6.42 days to cover. Shares are up 57.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates 3D Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Computers & Peripherals industry. The net income has significantly decreased by 35.0% when compared to the same quarter one year ago, falling from -$13.18 million to -$17.79 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, 3D SYSTEMS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.74%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 33.33% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • 3D SYSTEMS CORP's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, 3D SYSTEMS CORP swung to a loss, reporting -$5.85 versus $0.11 in the prior year. This year, the market expects an improvement in earnings ($0.33 versus -$5.85).
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.8%. Since the same quarter one year prior, revenues slightly dropped by 5.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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