One of the stocks in one of the recent go-go sectors, 3D Systems Inc, holds its analyst day on Tuesday, and it’s one of those names that’s been beaten down so much of late that it’s bound to have some kind of positive reaction to news. But like many other companies, implied volatility in the stock is pretty low right now – it’s hard to see much of anything happening during such a tranquil period when the S&P 500 adds a point or two here and there every day or so. It’s doubly difficult because stocks like this have had their big correction – in this case, falling nearly 50 percent from its all-time high reached early this year.
Right now the expected move on the stock post-analyst day is about 2.3 percent, which is low compared to the last three analyst days, which have seen the shares move at least 3.3 percent, and Goldman Sachs believes there could be a bigger swing. They believe the company could raise its guidance for the fiscal year, depending on what it says about research and development and new products.
It’s going to be a tough road, though, because the stock is still, at this point, viewed as one of the more overvalued names in the StarMine universe. Short interest is high, at 32 percent of the float, but that may also work in the favor of those who could see a bounce, as it is a big short squeeze candidate going forward. Analyst revisions on revenue estimates have been pretty negative in recent days and weeks also – and given analysts are as much herd-followers as anyone else, that too points to perhaps the cessation of the losses in the stock. (A competitor, Stratasys, has been hit nearly as hard, and yet StarMine still sees it being worth only about half of its current value.)