Why 3D Systems Is a Very Hot Stock again

For years, 3D Systems (NYSE:DDD) traded in the $5 - $10 range. That ended at the beginning of this year when the company presented at a virtual growth conference.

On Jan. 27, 3D Systems expanded its regenerative medicine efforts. Excitement for the plans lifted the stock again. The company said it was driven by the progress made when it collaborated with United Therapeutics (NASDAQ:UTHR). Having figured out how to print lung scaffolds capable of full-sized, micron-level printing, investors reacted positively. This will lead to a wide range of opportunities for the company.

Before that development, DDD stock languished as it posted lackluster results from its current business.

When the company reports quarterly results in the coming weeks, investors should not expect strong results. Its new initiatives in the health-care market are in the early phases. Still, a strong outlook for the quarter and year could help the stock stay at its current levels.

For the year, analysts expect EPS to fall by around 52%. In the next year, the new business endeavors should lead to a four-fold increase in earnings. Given the uncertainties of delivering on the growth, cautious investors should not buy DDD stock yet. Wait for a dip to unfold first before starting a new position.