3D Systems: Zacks’ Bear of the Day Play

3D Systems (DDDAnalyst Report) has reported earnings below the Zacks Consensus Estimate in six of the last seven quarters. All those misses don’t help things, but what pushed this stock down the lowest Zacks Rank is the fact that earnings estimates for this year and next have been falling. DDD is now a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day.Description

D Systems Corp. is a leading provider of 3-D Modeling, Rapid Prototyping and Manufacturing solutions. Its systems and materials reduce the time and cost of designing products and facilitate direct and indirect manufacturing by creating actual parts directly from digital input. These solutions are used for design communication and prototyping well as for production of functional end-use parts: Transform your products.

Recent Miss

On November 4, the company reported a loss of four cents when the Zacks Consensus Estimate was calling for a gain of a penny. The five cent miss translates to a – 500% negative earnings surprise. Revenue of $152M was also below expectations and as a result the stock fell 9% in the session following the release.


DDD has an extreme valuation, with a forward PE of 360x compared to a 12x industry average. The company is trading at a 1.0x book multiple whereas the industry trades at 3.3x. The price to sales multiple of 1.9x is right in line with the industry average.


Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color coded lines represent analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving lower.

Follow Brian Bolan on twitter at @BBolan1

Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor in charge of the Zacks Stocks Under $10, an investor service , where he recommends the stocks in the portfolio.

Brian also runs the brand new Zacks Game Changers where he looks for stocks that are disrupting their industries and reaping big gains.


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