3D Systems Corporation (DDD), Stratasys, Ltd. (SSYS): What Industry Will Tomorrow’s Jobs Come From?

United Parcel Service, Inc. (NYSE:UPS) derives its revenue from shipping items, and what better way to drive volume than having items built at your shipping facility. UPS saw its revenue increase 1.2% as volumes increased 5% year over year in the most recent quarter. The shipping environment remained competitive and consumers were more price conscious, resulting in lower margin shipping options being used. UPS expects to see earnings per share growth of 4%-13% for the second half of the year that includes the holiday season.

United Parcel Service, Inc. (NYSE:UPS) generated $2.5 billion in free cash flow in that same time frame after capital expenditures of $990 million. The company paid $1.1 billion to support a 2.8% dividend, and repurchased 21.8 million shares for $1.8 billion.

Looking forward, the company sees growth in its healthcare customers offsetting a slow down with its technology customers. Even if revenue were to remain constant, shareholders are receiving nearly 7% every year in dividends and buybacks from this shipping giant. With the added benefit of being a first mover in the consumer 3D printing space by teaming up with Stratasys, Ltd. (NASDAQ:SSYS), Brown is looking like it is a pretty safe investment.

Foolish bottom line

As the industry progresses we will see more companies adopting the 3D printing models, allowing fixed costs, and CapEx to fall in many major manufacturing sectors. 3D Systems Corporation (NYSE:DDD) and Stratasys, Ltd. (NASDAQ:SSYS) are set to dominate the industry as of right now, barring any large mergers or acquisitions. The sun is rising on this small industry, but the stocks are expensive right now, proceed with caution.

Wes Patoka owns shares of Stratasys and United Parcel Service. The Motley Fool recommends 3D Systems, Stratasys, and United Parcel Service. The Motley Fool owns shares of 3D Systems and Stratasys and has the following options: short January 2014 $36 calls on 3D Systems and short January 2014 $20 puts on 3D Systems.

The article What Industry Will Tomorrow’s Jobs Come From? originally appeared on Fool.com.

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