ExOne (XONE) Stock Revisited

Wyatt Investment Research

Back in January, I alerted you to a 3-D printing company that was hoping to “follow in the footsteps” of the wildly successful 3D Systems (DDD). So far, ExOne (XONE) has done just that.

Shares of the 3-D printing company have risen 165% since the stock’s February 6 IPO. XONE stock was up another 2.5% earlier today, in fact.

ExOne is a Pennsylvania-based company that provides 3-D printing machines and products to industrial customers, including airlines. At the time it went public, ExOne wasn’t profitable – and it still isn’t. But the promise of 3-D printing – an up-and-coming industry based on a new technology that gives customers the power to print three-dimensional replicas of real parts taken directly from digital input – seems to be what’s carrying the stock.

3D Systems really started the 3-D printing craze on Wall Street. The company went public in May 2011, and has shot up 300% since then. Now XONE is following a similar path.

How long will it last? That may depend on if ExOne becomes profitable. 3D Systems has turned a profit every quarter since it went public, with annual earnings doubling in the last two years. ExOne, meanwhile, suffered a $10 million loss last year, and has been in the red each of the two quarters since it went public.

Unless it can improve those numbers, XONE might have a difficult time sustaining this torrid pace. For now, though, the stock continues to benefit from its place in one of America’s hottest industries.

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