Red Hot Sector is ahead of itself

Shares of 3D Printing companies are leading the sector gains for 2021 from the universe of companies that we track.  Since Jan 1, 2021 3D printing companies are up a mind-boggling 345%, easily beating the 2nd best sub-sector Tobacco stocks by almost 7x in the same time period.

Shares of DDD, XONE and SSYS are notching new highs and trading at levels that appear like the companies are overvalued. Analysys are reiterating price targets below current levels for XONE and DDD, and while this has been an impressive run and the future for 3D printing will remain bright - we believe these shares are ahead of where they should be trading.

We don't have a trade on these companies yet, but they're on our watchlist for companies that are more likely to move lower than higher.