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Stratasys: Here’s Why It’s Climbing

Published 03/14/2016, 12:14 PM
Updated 05/14/2017, 06:45 AM
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Stratasys (NASDAQ:SSYS) is having an incredible day in the market. So naturally, I decided to do a bit of research on the stock to see exactly what was going on. However, I've got to say, I had to dig for this one, it wasn't very easy to find. Nonetheless, I figured it out. There was great news published that shows that the 3D printing industry is growing in a big way. Today, we'll talk about that news, how it has anything to do with SSYS, how the market is reacting, and what we can expect to see moving forward. So, let's get right to it...

Why SSYS Is Climbing In The Market Today

When searching for news that had to do with Stratasys, I simply couldn't find anything. There has been no recent fundamentally good nor bad news surrounding the company over the past couple of days. Of course, there have been the automated news networks pushing hedge fund numbers trying to take advantage of traffic trends, but when it comes to real, quality news, there was nothing asset specific about SSYS. However, there was good news with regard to the 3D printing industry. 3D Systems (NYSE:DDD) reported its earnings for the fourth quarter, beating expectations and showing exponential year over year growth.

Now, I know what you may be thinking... What does this have to do with SSYS? Well, on an asset specific level, it has absolutely nothing to do with SSYS. However, on an industry wide level, this news is incredible news. You see, Stratasys reported solid earnings just 11 days ago. Now, 3D Systems has done the same, showing exponential growth in year over year revenue and sales. This is a signal that the 3D printing industry is in the midst of a growth spurt, and investors seem to want to get involved.

How The Market Is Reacting To The News

As investors, we know that the news moves the market. Any time we see positive news with regard to a publicly traded company we can expect to see gains in the value of the stock associated with that company. So naturally, with the good news associated the 3D printing industry as a whole, investors are becoming relatively excited with SSYS, sending the value of the stock upward. Currently (10:40), SSYS is trading at $25.93 per share after a gain of $1.74 per share or 7.19% thus far today.

What We Can Expect To See From Stratasys Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Stratasys. The truth is that they make some of the most detailed 3D printers on the market today. The company has made a name for itself with regard to quality and state of the art technology. Now, there are clear signs that the 3D printing industry is growing, and in a big way. With the 3D printing industry growing, it only makes sense the SSYS is going to take a rather large chunk of the pie. Here's the bottom line my friends... SSYS has one of the best products, if not the best product, on the 3D printing playing field. On top of this, they have an incredible management team, great marketing strategies, and a strong overall plan for growth moving forward. Between these aspects, it simply doesn't seem like it would make sense to expect to see anything but growth moving forward. All in all, I'm incredibly impressed with what we've seen from Stratasys and excited for what we can expect to see from SSYS moving forward.

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