Tags: 3-D | printing | stocks | overdone

Analysts: 3-D-Printing Stocks Rally Overdone

By    |   Thursday, 27 Feb 2014 11:06 AM

The shares of three-dimensional (3-D) printing companies have soared over the past year—to overvalued levels in some analysts' opinion.

"The 3-D-printing industry isn't revolutionary, it's evolutionary," Andrew Left, a short seller and chief of Citron Research, told CNBC. "In a hot market like this, you get a good story. It just captures peoples' imaginations, but in this case, it also captures peoples' dollars."

The stock of 3D Systems has jumped more than 115 percent during the last year, while Stratasys has soared more than 100 percent.

Editor’s Note:
Get These 4 Stocks Before 399% Stock Market Rally!

Investors should realize all the companies aren't alike, says Phil Reeves, managing director of Econolyst, a consulting and research firm.

"When you look at these stocks, they all appear to be intrinsically linked," he said at a 3-D printing conference earlier this month, according to CNBC. "When one goes up, the others go up, and when one goes down, the others go down."

But the companies are actually quite different from each other, Reeves says. And some are stronger than others.

"Companies like 3D Systems are becoming jacks-of-all-trades and masters of none," he said. "They're not actually the market leader in any of the things they are in."

Morningstar analyst Daniel Holland, cut his fair value estimate for 3D Systems shares to $27 earlier this month from $35 previously.

He made the change "as a result of lowering our long-term margin assumptions following several quarters of the company struggling to balance costs alongside revenue growth opportunities," Holland wrote on Morningstar.com.

3D Systems shares fell 82 cents, or 1.1 percent, to close Thursday at $73.84.

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

Related Stories:

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
InvestingAnalysis
The shares of three-dimensional (3-D) printing companies have soared over the past year—to overvalued levels in some analysts' opinion.
3-D,printing,stocks,overdone
302
2014-06-27
Thursday, 27 Feb 2014 11:06 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved