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Stratasys (SSYS) Rides on Strong Portfolio, Cost Management

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On Dec 19, we issued an updated research report on Stratasys Ltd. (SSYS - Free Report) .
 
Stratasys, a manufacturer of 3D printers and in-office rapid prototyping (RP) and manufacturing systems, seems to be well poised for steady growth backed by its turnaround strategies, which include launching innovative products, strategic partnerships and acquisitions.

These initiatives are paving the way for the company to excel in the 3D printing industry, which is anticipated to witness CAGR of 25.76% through 2017 to 2023 and reach $32.78 billion.

Stratasys stock has gained 29.6% year to date, substantially outperforming the 14.6% rally of the industry it belongs to.



Key Catalysts

The company has a solid product suite including the likes of RedEye RPM, Infinite-Build 3D Demonstrator, Robotic Composite 3D Demonstrator and fused deposition modeling (FDM) 3D printers. Prominent names like Airbus and Koninklijke Philips N.V. are part of its clientele.

The company’s strategic partnerships with Schneider Electric, The Boeing Co., Ford Motor Co., Siemens, Boom Supersonic and United Launch Alliance have expanded its geographic reach and market penetration. Additionally, the ISO 9001: 2008-certification for its products is a testament of the improving quality of its products

Stratasys’  bottom line in the third quarter improved significantly  year over year. The company’s constant focus on a stringent cost  structure aids growth.

Considering the evolving nature of the 3D printing market and the high cost of operations associated with it, we believe that much of the company’s long-term profitability will depend on efficient cost management.

Zacks Rank and Key Picks

Stratasys has a Zacks Rank #2 (Buy).

Some of the top-ranked stocks in the broader technology sector are Intel Corporation (INTC - Free Report) , NVIDIA Corporation (NVDA - Free Report) and IPG Photonics Corporation (IPGP - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected EPS growth rate for Intel, NVIDIA and IPG is projected to be 8.42%, 10.25% and 12%, respectively.

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