By Sarfaraz A. Khan. Research assistant: Gohar Yousuf
The Israel based Stratasys (SSYS) has performed poorly at the stock markets, but it could be the best 3-D printing stock available right now.
Shares of Stratasys have struggled this year, dropping by more than 23% so far. The company has, however, outperformed its peers 3D Systems (DDD), ExOne (XONE) and Voxeljet AG (VJET) which are down 47.6%, 51.3% and 58.9% on a year-to-date basis.
The two industry leaders, Stratasys and 3D Systems, have lost billions in market value, but this isn’t stopping the two from undertaking acquisitions. Both companies have significantly grown their revenues and improved their bottom lines. Moreover, Stratasys and 3D Systems will likely continue growing on the back of higher 3D printing expenditure.
Both companies are trading at similar multiples of their trialing sales. Stratasys, however, is more undervalued on account of a lower PEG ratio. Stratasys has a five-year PEG ratio of 1.84 compared to 3D Systems’ 2.57. Moreover, Stratasys has built a solid foundation for future revenue streams with an industry leading global install base.
Analyst at JPMorgan believe that Stratasys is on track to meet market's expectations for 2014. The investment bank has set a price target of $130 on the stock, which represents a potential upside of nearly 30% from the current levels.
Stratasys is continuing with its acquisition spree. The company is planning to purchase some assets of Interfacial Solutions, which provides production and thermoplastics services to the plastic industry. Read full article at GuruFocus