What Happened?

A number of stocks jumped in the afternoon session after markets rotated out of tech names to position themselves for a massive injection of government spending. 

The sector was ignited by President Trump's call for a $1.5 trillion defense budget for 2027, a significant increase that sent defense contractors surging. Northrop Grumman jumped over 10% and Lockheed Martin gained nearly 8%, acting as the primary engine for the sector's outperformance. Beyond the immediate defense rally, the industrial sector benefited from a broader stabilization in energy costs, with crude prices rebounding. This combination of policy-driven demand and stabilizing input costs made heavy industry an attractive destination.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Custom Parts Manufacturing company Stratasys (NASDAQ: SSYS) jumped 4.8%. Is now the time to buy Stratasys? Access our full analysis report here, it’s free.
• Custom Parts Manufacturing company 3D Systems (NYSE: DDD) jumped 12.8%. Is now the time to buy 3D Systems? Access our full analysis report here, it’s free.
• Engineered Components and Systems company Park-Ohio (NASDAQ: PKOH) jumped 2.5%. Is now the time to buy Park-Ohio? Access our full analysis report here, it’s free.
• Professional Tools and Equipment company Stanley Black & Decker (NYSE: SWK) jumped 4.1%. Is now the time to buy Stanley Black & Decker? Access our full analysis report here, it’s free.
• Engineered Components and Systems company RBC Bearings (NYSE: RBC) jumped 2.9%. Is now the time to buy RBC Bearings? Access our full analysis report here, it’s free.

Zooming In On 3D Systems (DDD)

3D Systems’s shares are extremely volatile and have had 69 moves greater than 5% over the last year. But moves this big are rare even for 3D Systems and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 6.5% on the news that the company announced significant momentum and strong growth projections for its Aerospace & Defense (A&D) business. 

3D Systems projected that its A&D segment would become its largest and fastest-growing industrial business in 2026. The company stated the division's revenue grew over 15% in 2025 and was forecast to accelerate to more than 20% growth in 2026. This expansion was driven by increasing demand for U.S.-based manufacturing, supported by recent provisions in the National Defense Authorization Act that restrict foreign-sourced 3D printing systems for Department of Defense programs. To support this growth, the company also announced it was expanding its facility in Littleton, Colorado.

3D Systems is up 38.1% since the beginning of the year, but at $2.56 per share, it is still trading 45.9% below its 52-week high of $4.72 from February 2025. Investors who bought $1,000 worth of 3D Systems’s shares 5 years ago would now be looking at an investment worth $108.58.

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