Traders Keep 3D Systems (DDD), Stratasys (SSYS) in Check Amid Recent Drop

March 27, 2013 2:26 PM EDT
Did attention on the potential in 3-D printing push some of the stocks up too far, too fast?

Maybe, according to some of the latest market data.

Despite a recent sell-off in its shares, 3D Systems (NYSE: DDD) is still up double from the same period it was last year. The stock is currently trading at $30 and it was at $15.47 last March 28th. P/E on the shares is at 65.8 times current earnings expectations and 24.7 times next years. Market data has 3D systems earnings growth by 77.6 percent over the last five years, with current projections calling for earnings growth of 25 percent for the next five.

Stratasys (Nasdaq: SSYS) has a similar, but more subdued story. Shares are up about double from last year. Growth for the next five is expected at 30.5 percent or so, while growth had been largely stagnant the past five. Current P/E of 155 times earnings will whittle down to 30 times next year.

Both have seen a little bit of a dramatic drop from hitting highs last January.

Traders aren't taking too many precautions and expect a little more downside before things flatten for both. The latest data has short interest on 3D Systems increasing 7.9 percent from the end of February through middle of March, to 25.95 shares, or 31.4 percent of common float. For Stratasys, that number rose over 20 percent to 3.51 million shares, or 12.9 percent of float.

With murmurs of IBM, H-P, and others taking a hard look at the segment, it always pays to keep an air of caution.

3D Systems and Stratasys are mixed on the session Wednesday.

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