Three Reasons to Avoid DDD and One Stock to Buy Instead

StockStory12-23 17:06

Three Reasons to Avoid DDD and One Stock to Buy Instead 3D Systems trades at $3.53 and has moved in lockstep with the market. Its shares have returned 8% over the last six months while the S&P 500...

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Its shares have returned 8% over the last six months while the S&P 500...</p>\n\n<a href=\"https://finance.yahoo.com/news/three-reasons-avoid-ddd-one-090654454.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4170","symbol_name":"电脑硬件、储存设备及电脑周边","start_time":0,"source_url":"https://finance.yahoo.com/news/three-reasons-avoid-ddd-one-090654454.html","article_id":"2493751551","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/0GflVE28XW1eJfqZgwmSHA--~B/aD03MDA7dz0xNDAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/stockstory_922/ab9506135355c568c11a96c4e7bedce0"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2493751551","pubTimestamp":1734944814,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"3D Systems trades at $3.53 and has moved in lockstep with the market. Its shares have returned 8% over the last six months while the S&P 500 has gained 9.2%.Is there a buying opportunity in 3D Systems, or does it present a risk to your portfolio?Dive into our full research report to see our analyst team’s opinion, it’s free.We don't have much confidence in 3D Systems. Here are three reasons why there are better opportunities than DDD and a stock we'd rather own.Why Do We Think 3D Systems Will Underperform?Founded by the inventor of stereolithography, 3D Systems  engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries.We cheer for all companies making their customers lives easier, but in the case of 3D Systems, we’ll be cheering from the sidelines. That said, the stock currently trades at $3.53 per share (or 1× forwar","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4170":"电脑硬件、储存设备及电脑周边","BK4585":"ETF&股票定投概念","DDD":"3D系统","BK4546":"3D打印","BK4588":"碎股","BK4161":"工业机械","BK4551":"寇图资本持仓"},"translate_title":"避免DDD的三个理由和一只值得购买的股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DDD":1},"content_text":"Three Reasons to Avoid DDD and One Stock to Buy Instead \n \n\n3D Systems trades at $3.53 and has moved in lockstep with the market. Its shares have returned 8% over the last six months while the S&P 500 has gained 9.2%. \nIs there a buying opportunity in 3D Systems, or does it present a risk to your portfolio? \nDive into our full research report to see our analyst team’s opinion, it’s free. \nWe don't have much confidence in 3D Systems. Here are three reasons why there are better opportunities than DDD and a stock we'd rather own. \nWhy Do We Think 3D Systems Will Underperform? \nFounded by the inventor of stereolithography, 3D Systems (NYSE:DDD) engineers, manufactures, and sells 3D printers and other related products to the aerospace, automotive, healthcare, and consumer goods industries. \n1. Revenue Spiraling Downwards\nA company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. 3D Systems’s demand was weak over the last five years as its sales fell at a 7.2% annual rate. This was below our standards and signals it’s a low quality business. \n2. Free Cash Flow Margin Dropping\nIf you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. \nAs you can see below, 3D Systems’s margin dropped by 9.1 percentage points over the last five years. It may have ticked higher more recently, but shareholders are likely hoping for its margin to at least revert to its historical level. Almost any movement in the wrong direction is undesirable because it’s already burning cash. 3D Systems’s free cash flow margin for the trailing 12 months was negative 14.2%. \n\n3. Short Cash Runway Exposes Shareholders to Potential Dilution\nAs long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. \n3D Systems burned through $62.9 million of cash over the last year, and its $222.8 million of debt exceeds the $190 million of cash on its balance sheet. This is a deal breaker for us because indebted loss-making companies spell trouble. \n\nUnless the 3D Systems’s fundamentals change quickly, it might find itself in a position where it must raise capital from investors to continue operating. Whether that would be favorable is unclear because dilution is a headwind for shareholder returns. \nWe remain cautious of 3D Systems until it generates consistent free cash flow or any of its announced financing plans materialize on its balance sheet. \nFinal Judgment\nWe cheer for all companies making their customers lives easier, but in the case of 3D Systems, we’ll be cheering from the sidelines. That said, the stock currently trades at $3.53 per share (or 1× forward price-to-sales). The market typically values companies like 3D Systems based on their anticipated profits for the next 12 months, but it expects the business to lose money. We also think the upside isn’t great compared to the potential downside here - there are more exciting stocks to buy. Let us point you toward Google, whose cloud computing and YouTube divisions are firing on all cylinders. \nStocks We Like More Than 3D Systems\nWith rates dropping, inflation stabilizing, and the elections in the rearview mirror, all signs point to the start of a new bull run - and we’re laser-focused on finding the best stocks for this upcoming cycle. \nPut yourself in the driver’s seat by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. \nStocks that made our list in 2019 include now familiar names such as Nvidia (+2,691% between September 2019 and September 2024) as well as under-the-radar businesses like Comfort Systems (+783% five-year return). Find your next big winner with StockStory today for free.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2493751551"}