'Game-Changing' Technology Stocks Proclaim Price Upsides

Includes: DDD, SSYS, XONE
by: Fredrik Arnold

An online teaser campaign touts three dimensional printing technology as the game changer that can end the "made-in-China" era. If your curiosity has set you wondering about what 3-D printing stocks you might buy, here is a guide.

Results from Yahoo Finance tallied as of market closing prices September 13, compared three 3-D printing company stock prices with analyst mean target price results one year hence. Stratasys Ltd. (NASDAQ:SSYS), an Eden Prairie, MN firm, exhibited a 20.47% price upside to lead the field.

The chart above used the one-year mean target price set by brokerage analysts matched against September 13 closing price to compare three 3-D printing company stocks showing the highest upside price potential into 2014. Only U.S.-based firms made the list. Others on the list beside Minnesota's Stratasys were The ExOne Company (NASDAQ:XONE) in Pennsylvania, with 19.72%, and 3D Systems Corp. (NYSE:DDD) from South Carolina, showing 8.67% upside.

The number of analysts providing price estimates was noted after the name for each stock on the source table for the chart. Three to nine analysts were considered optimal for a valid mean target price estimate.

Wall Street Wizards Wrap 14.3% Average Net Gain from Three 3-D Stocks By 2014

Three Yahoo Finance picks were graphed below to show relative strengths price as of September 13, 2013, and those projected by Yahoo Finance analyst mean 1-year target estimates to the same date in 2014.

A hypothetical $1000 investment in each stock was divided by the current share price to find the number of shares purchased. Thereafter the analyst mean target price was used to gauge the stock price upsides and net gains less $20 purchase and sale broker fees as of 2014.

Aggregate single-share prices of the three stocks created data points for 2013. Projections based on aggregate one-year analyst target share prices from Yahoo Finance created the 2014 data points for the line showing price appreciation.

Yahoo Finance projected an aggregate single share price increase of 14.3% in the coming year. The number of analysts contributing to the mean target price estimate for each stock was noted in the next to the last column on the chart. Again, three to nine analysts was considered optimal for a valid projection estimate.

A beta (risk) ranking for each analyst-rated stock was provided in the far right column of the chart above. A beta of 1 meant the stock's price would move with the market. Less than 1 showed lower than market movement. Higher than 1 showed greater than market movement. Negative numbers show movement the opposite of market direction.

Three 3-D Stocks Net 6.7% to 18.5% by September 2014

Three possible profit-generating stock trades from $1k invested in each revealed by Yahoo Finance for 2014 were:

Stratasys Ltd netted $184.72, based on a mean target price estimate by nine analysts less $20 in broker fees. The beta number showed this estimate subject to volatility 91% greater than the market as a whole.

The ExOne Company netted $177.16 based on a mean target price estimate from nine analysts less $20 in broker fees. The beta number showed this estimate subject to volatility 109% more than the market as a whole.

3D Systems Corp. netted $66.74 based on a mean target price estimate from three analysts less $20 in estimated broker fees. The beta number showed this estimate subject to volatility 90% opposite the market as a whole.

The average net gain in price was over 14% on $3k invested as $1k each in these three stocks. This gain estimate was subject to average volatility 2% greater than the market as a whole.

The stocks listed above were suggested only as decent starting points for your stock purchase research process. These were not recommendations.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.