Top 3 Rapid Prototyping Stocks
I know it’s been a while, but I’m finally back in the saddle everybody! I figured, why not start off with some stock talk, aka “stonks”. Considering the recent GME craziness and the big short squeeze, I feel no better time than now. I’ll be breaking down the top three rapid prototyping stocks based on my analysis in four major categories; earnings alignment, trading volume, trend pattern, and stock price over the past month. Personally, I look to these 4 categories for my own insight and decision-making when trading stock.
What can I say, I have a personal connection to Protolabs. No, not because I own their stock, but because I have used them for prototyping services many times throughout my Engineering career. They’re good at what they do and that is evident in my primary category for rating a stock; their earnings ability and track record. Protolabs almost always meets or exceeds their earnings estimates, which is easier said than done. They exceeded all four quarters’ earnings estimates during a major economic downturn in 2020 COVID times¹. Next, PRLB averages a 400k~ trade volume which isn’t very volatile at all, although they’ve shown recent spikes in prices due to higher than normal trade volume and interest¹.
As of now, the current pattern is reading as “Neutral” commodity channel index, yet on the rise¹. Over the last month, the stock price has increased from $158~/share to as high as $256~/share¹. Lastly, PRLB is currently rated as a 2.8, weak-buy to hold by Yahoo Finance and a strong buy by BarChart.com¹². Overall, I flat out love PRLB as a company and in terms of performance, however, I think the price is on the high end and personally would not be investing at the moment but holding if I did own it.
Yet another company where I can absolutely vouch for their product. I had the pleasure of working with an older Stratasys 1200 Series, FDM 3D printer and over the course of 2.5 years we only had one issue with the feeder nozzle. Stratasys builds reputable machines and products, and they’re obviously a long time player of the 3D printing game. First off, SSYS is not quite as consistent with earnings track record goes. They were off the mark at the end of 2019 and missed the first quarter of 2020, but then corrected throughout the remainder of 2020³. Next, the trade volume of SSYS is a very different story as compared to that of PRLB. SSYS averages about 1.9 million in trader which is somewhat in the middle of the two, PRLB and DDD³.
Over the past quarter, the trade volume has been significantly higher than the average at times, in turn, contributing to its current upward trend. Currently, the SSYS graph pattern is reading out as a “Bearish” shooting star, regardless of the incline³. SSYS has gone from $20~/share to $51~/share throughout this past month but is rated as a 3.1, strong hold by Yahoo Finance³. On the contrary, BarChart.com is still rating it as a strong buy even though 3 of their analysts rate the stock as a moderate to strong sell⁴. All in all, I trust and respect the Stratasys product but don’t have a lot of confidence in their stock at the moment. That being said, the stock price is far more attractive than that of PRLB and I would hold if I did own it.
3D Systems (DDD)
Last, but not least, 3D Systems, however, I cannot vouch for their products nor services, unfortunately. 3D Systems is definitely an OG in the rapid prototyping game and they’ve been a household name since the beginning. Let’s start with earnings, DDD is usually on point with meeting their earnings forecasts, although they had one blip in the 2nd quarter of 2020 which anyone can get a hall pass for⁵. Next, the trade volume of DDD is very volatile in comparison to both PRLB & SSYS and averages at about 12.5 million⁵.
The high trade volume average has obviously driven the current upward trend. Currently, DDD’s graph pattern is reading out as a “Bullish” commodity channel index, which is evident by its incline⁵. DDD has gone from $25~/share to $52~/share over the past month but is rated as a 3.3, strong hold by Yahoo Finance⁵. BarChart.com is still rating it as a strong buy even though 5 of their analysts rate the stock as a hold⁶. Personally, considering the price range, pattern and ratings, I would buy this stock if I were in the market and hold if I already owned it obviously.
*Disclaimer: The proceeding article should not be construed as financial advice or guidance in any way, shape, or form. This article is NOT financial advice!
1 – https://finance.yahoo.com/quote/PRLB?p=PRLB
2 – https://www.barchart.com/stocks/quotes/PRLB/overview
3 – https://finance.yahoo.com/quote/SSYS?p=SSYS
4 – https://www.barchart.com/stocks/quotes/SSYS/overview
5 – https://finance.yahoo.com/quote/DDD?p=DDD
6 – https://www.barchart.com/stocks/quotes/DDD/overview