Risk/Reward Rating: Neutral
3D Systems (3D) stock is up over 37% on its Q2 2021 earnings report and the continued turnaround execution under the new CEO, Dr. Jeffrey Graves. The company is a leader in additive manufacturing (3D printing). The industry has historically generated bouts of excitement followed by disappointment for investors as the real-world use cases for the technology have been slow to scale volume production and consistent growth. In the case of 3D Systems, under the new leadership the company has acknowledged these industry realities and is focusing its efforts on industry verticals that are more promising in the near term while offering pathways to sustainable growth.
The key to the turnaround plan is the reorganization of the company into a more focused industry-oriented business structure involving two business units: Healthcare and Industrial. While at the same time 3D has been selling off business units which are non-core to this higher margin, customer-oriented strategy.
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