Stratasys (SSYS) recently stated that its uPrint SE Plus 3D Printer has been selected by The UPS Store to expand its 3D printing services at approximately 100 locations.
The store, a subsidiary of United Parcel Service (UPS) offers a range of services to meet the needs of small businesses. The UPS Store is the first nationwide retailer to provide 3D printing services. The availability of uPrint SE Plus 3D Printer in the UPS Store will help customers to reduce costs and time-to-market.
Moreover, it will help users to reduce complexities and data loss thereby enhancing user experience and providing high-quality prints. Customers can benefit from greater accuracy and reliability which cannot be assured by a home printer.
We believe that the collaboration will expand and enhance Stratasys’ additive manufacturing (AM) or 3D Printing Platform. Also, this association will enable Stratasys to attract new clients and strengthen its overall market position.
The 3D printing market presents a favorable long-term investment opportunity as a large number of engineers, designers, architects and entrepreneurs are resorting to 3D solutions for their primary designing and product modeling. As per the 2014 study by Wholers Associate, more than two-thirds (68.3%) of global providers of 3D printing services have added new machines in 2013, up from 58.1% in 2012.
Going by independent market research, Stratasys’ growth prospects are bright. As per the 2013 study by Wholers Associate, 3D printing is expected to become a viable alternative across several market segments. The research firm expects this industry to continue to show double-digit growth over the next few years. Therefore, Wohlers Associates believes that by 2017, the sale of 3D printing products and services will reach a level of $6 billion worldwide, whereas by 2021, the industry is expected to generate $10.8 billion in revenues. As one of the leading companies in 3D printing, these are encouraging statistics for Stratasys as the company has the ability and expertise to gain market share.
Considering the evolving nature of the 3D printing market and high cost of operations, we believe that much of the company’s long-term profitability will depend on efficient cost management.
Moreover, the last 60 days have seen positive estimate revisions for fiscal 2014. During the period, 4 out of 6 estimates were raised, which in turn raised the Zacks Consensus Estimate from $1.75 to $1.87 per share.
Stratasys’ shares have gained about 7.5% over the last 3 months. However, other 3D printing solution providers such as Voxeljet (VJET), ExOne (XONE) and 3D Systems (DDD) declined during the same period. Voxeljet, ExOne and 3D Systems declined approximately 27.8%, 42.7% and 20.2%, respectively during the same time frame.
Currently, Stratasys sports a Zacks Rank #1 (Strong Buy).
STRATASYS LTD (SSYS): Free Stock Analysis Report
3D SYSTEMS CORP (DDD): Free Stock Analysis Report
VOXELJET AG-ADR (VJET): Free Stock Analysis Report
EXONE CO/THE (XONE): Free Stock Analysis Report
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