DDD Boosts Dental 3D Printing: How Should Investors Play the Stock?
3D Systems DDD recently announced an advancement in dental technology, with the Food and Drug Administration (FDA) granting 510(k) clearance for its advanced multi-material, monolithic jetted denture solution.
The technology combines NextDent Jet Denture Teeth and NextDent Jet Denture Base, along with advanced jetting technology, software and services, to produce high-quality, durable and aesthetically pleasing dentures.
By integrating the FDA-cleared solution, dental laboratories can now enhance efficiency in denture production, leading to improved patient experiences.
The latest FDA clearance will help DDD expand its expertise in the digital dentistry market, offering benefits such as reduced material waste, lower capital investment and faster turnaround times for prosthetics.
3D Systems Corporation Price and Consensus
3D Systems Corporation price-consensus-chart | 3D Systems Corporation Quote
Will DDD Benefit From a Robust Dental Portfolio?
The dental 3D printing market is gaining traction, which is expected to reach $2 billion by 2028, positioning 3D Systems as a frontrunner, poised to meet the evolving needs of the growing market and enhance patient experiences worldwide.
DDD is further expanding its footprint in the digital dentistry market. In June, it announced an expanded focus on digital dentistry with a multi-year, quarter-billion-dollar agreement for clear aligners and new advancements in oral applications, including night guards and multi-material dentures.
3D Systems advancements in additive manufacturing, including larger printer sizes, increased speed and reliability, are driving mass customization and attracting major players across various industries.
To bolster its additive manufacturing capabilities in July, 3D Systems and Precision Resource announced a strategic partnership to enhance additive manufacturing capabilities, integrating 3D Systems DMP technology to accelerate the production of critical components.
The company also announced that NAMI, in collaboration with the Saudi Electricity Company (SEC), deployed multiple 3D Systems and 3D printing technologies to localize spare parts production, aiming to enhance efficiency and reduce costs in the energy sector.
DDD Suffers from Persistent Headwinds
Despite 3D System’s robust portfolio, macroeconomic and geopolitical uncertainties have been a concern. Persistent inflation has kept customer budgets under pressure.
3D Systems’ shares have plunged 58.7% year to date compared with the broader Zacks Computer and Technology sector’s return of 19.4%.
In second-quarter 2024, DDD generated revenues of $113.3 million, down 11.7% year over year. The downtick was mainly due to reduced printer sales from macroeconomic challenges affecting hardware demand, partly offset by growth in materials and services.
For 2024, DDD projects non-GAAP revenues to be between $450 million and $460 million. The Zacks Consensus Estimate for revenues is pegged at $455.89 million, indicating a 6.59% decline year over year.
The Zacks Consensus Estimate for earnings is pegged at a loss of 47 cents per share, up 292% in the past 30 days.
What Investors Should do With DDD Stock?
DDD stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
The forward 12-month Price/Sales ratio for DDD stands at 0.76X, higher than its Zacks Computer - Mini computers industry’s 0.70X, reflecting a stretched valuation.
3D Systems currently carries Zacks Rank #4 (Sell), which implies that investors should stay away from investing in this stock at present.
Top-Rank Stocks To Buy
AudioEye AEYE, Aspen Technology AZPN and Badger Meter BMI are some better-ranked stocks in the broader technology sector. AudioEye and Aspen Technology currently sport Zacks Rank #1 (Strong Buy) at present, while Badger Meter carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AudioEye’s shares have surged 283.6% in the year-to-date period. The long-term earnings growth rate for AEYE is pegged at 25%.
Aspen Technology’s shares have moved up 6.1% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 13.12%.
Badger Meter’s shares have appreciated 38.3% in the year-to-date period. The long-term earnings growth rate for BMI is currently projected at 17.91%.
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