2 Trade Setups with Great Risk/Reward: SSYS and TDOC

As recently promised in When the Wind Shifts, Adjust Your Sails, here are a couple of current opportunities offering some great risk vs reward:

Stratasys Ltd. (SSYS): A Turnaround Story in 3D Printing with a Key Recent Buyer

Company overview:
Stratasys $SSYS ( ▲ 6.04% ) is a leader in polymer-based 3D printing. Its ecosystem of printers, materials, and software serves aerospace, automotive, healthcare, and more. The company is recognized for enabling faster prototyping, manufacturing agility, and advanced patient care solutions.

Why I like the set-up:

• Recently bought by Rep. Debbie Wasserman Schultz, a key member of the House Subcommittee on Military Construction and Veterans Affairs.

• Multi-year basing formation appears to be resolving upward.

• ⚓️ VWAP pinching on the weekly chart.

• Golden Cross (50-day above 200-day) initiated earlier in the year now looks to be confirmed.

• Holding its 30-week average, with a series of higher highs and higher lows.

Bull Case:

• Balance Sheet Strength: $254.6M cash, no debt.

• Margins: Non-GAAP gross margin >46%; EBITDA improving YoY.

• Strategic Partnerships: GM, Toyota, Blue Origin. New materials and software keep it competitive.

• Attractive Valuation: Forward P/E of 12x, below peers and history.

• Recovery Potential: Analysts rate “Moderate–Strong Buy” with targets 10–67% above current.

Bear Case:

• Flat Growth: 2025 sales guidance $550–560M, below consensus.

• Macro Headwinds: High rates, weak capex spending.

• Competition: Crowded 3D printing market.

• Execution Risk: 15% workforce reduction in 2025 may hinder delivery.

Why Wasserman Schultz matters here:
Debbie Wasserman Schultz has a track record of making timely and lucrative trades, especially in sectors tied to government and defense. Her portfolio includes 464% gains in New Gold Inc, 244% in Alamos Gold, 114% in Mag Silver, and 58% in Viasat, among others. Overall, her portfolio has historically outperformed the market, with about half to slightly more than half of her trades profitable. But when she hits, she often hits big, averaging gains of 50% or more on winners.

Her purchase of Stratasys is notable as she is on the House Subcommittee on Military Construction, Veterans Affairs, and Related Agencies. Stratasys’ 3D printing is strongly position to improve innovation, speed, customization, and resilience in both military and aerospace/rocket manufacturing and operations. Plus, her investing history suggests she knows where the government money is flowing.

My View:
Stratasys is well-capitalized and positioned for recovery, but patience may be required. A key level to watch is $12.88. A breakout and hold there suggests a stronger trend. Above $14.33, increases the chances of a longer-term uptrend. Near-term, I’m targeting $22–$23, likely trimming there to reload for a possible longer-term run toward $34, and possibly even $60.

Current price around $11 looks like a good entry point, with risk managed by a stop just below $8.36. The Wasserman Schultz purchase is a kicker as it could be a clue that government-related contracts may provide the catalyst Stratasys needs to hit the loftier targets.

Teladoc Health, Inc. (TDOC): A Technical Set-Up With Speculative Upside

Why it’s interesting now:
During certain points of the credit cycle, even the stocks of unprofitable or beaten-down businesses can stage strong rallies. Teladoc $TDOC ( ▼ 3.75% ) is a candidate for such a move. After years of decline, it may be carving out a bottom.

Technical signals to watch:

• Found buyers below the prior low of $6.76, now appears to be turning that into support.

• RSI is forming higher highs and higher lows.

• MACD is trending upward.

• Longer-term stochastics suggest oversold conditions.

• The 8-day moving average looks ready to cross above the 21-day.

• Recently broke above its 200-day moving average for the first time since March 2021.

Fundamental backdrop:
Teladoc was a pandemic darling that collapsed once growth expectations deflated. Today, it’s repositioning as a turnaround story in a sector with fresh tailwinds. Its core business includes telemedicine, chronic care management, and mental health (BetterHelp).

Bull Case:

• The Chart: Techincals are beginning to look like a bottom is in for the price.

• Industry Growth: Telehealth projected to reach $334B by 2032 (21.9% CAGR - Compound Annual Growth Rate).

• Valuation: Shares at $7–$8, far below pandemic highs, with analyst targets of $9.76–$11.20.

• Strategic Moves: $45M UpLift acquisition; international revenue +10% YoY.

• EBITDA: Sequential improvement; analysts see possible 20% margin in two years.

Bear Case:

• Revenue Pressure: Q2 2025 revenue down 2% YoY; BetterHelp segment down 9%.

• Profitability Issues: Still unprofitable with net margin of -39.7%.

• Post-Pandemic Headwinds: Shift back to in-person care.

• Competition: Amwell, Cano Health, and others growing share.

• Unclear Catalysts: Acquisitions not expected to boost 2025.

My View:

Price usually leads narrative. If TDOC can break and hold above $15.21, that would confirm a fresh uptrend. I’d be inclined to take partial profits in the $15.22–$16.50 range, then re-evaluate for a longer hold. A strong catalyst (such as AI integration) could even open the door to a $35–$45 run. Current levels (~$8) are attractive for an initial entry, with another good spot if it breaks above and holds $8.75.

Key Takeaway:
TDOC and SSYS are both speculative opportunities. TDOC is trying to turn the corner in telehealth; SSYS is a turnaround story in 3D printing with a well-funded balance sheet as well as a potentially new political tailwind. Both require risk management, but both offer outsized upside if momentum and catalysts align.

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