3D Systems (DDD) Surges 27.7%: Is This an Indication of Further Gains?

Zacks Equity Research
·2 min read

3D Systems DDD shares soared 27.7% in the last trading session to close at $36.87. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.5% gain over the past four weeks.

The upswing came after 3D Systems partnered with regenerative medicine giant CollPlant Biotechnologies to create 3D bioprinted regenerative soft tissue matrix to simplify and improve breast reconstruction procedures involving an implant.

This collaboration is a potential breakthrough in the medical 3D printing industry, as well as reconstructive surgery industry. This solution is likely to significantly increase the addressable market for soft tissue augmentation in breast implant procedures.

This maker of 3D printers is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +138.5%. Revenues are expected to be $141.93 million, up 26.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For 3D Systems, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DDD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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