In this article, we will be looking at the 10 best 3D printing and additive manufacturing stocks to buy.
As the global community continues to explore the realm of the internet and technology, it comes into contact with and begins developing more advanced technology. 3D printing, or additive manufacturing, is just one more technological advancement the world has seen so far. What it entails is the use of specialized printing technology to print out 3D versions of digital images. Basically, where in your normal printers, you get the spitting image of what you’re trying to print out on paper, with your 3D printer, you get a physical, 3D copy of the image you want to print. The image comes out by using a layering technique and Computer-Aided Design technology.
3D printing can be considered a new but highly intriguing and profitable market in the investing circle, what with the limitless options it presents to companies and industries across the world. The market size of the global 3D printing market was worth $13.78 billion last year, and according to a report, the global 3D printing market is expected to be worth $62.79 billion by 2028, showcasing a CAGR of 21% between this year and the forecasted year of 2028. As for the units of 3D printers shipped in 2020, they stood at a whopping 2.1 million last year and are expected to increase to about 15.3 million units by 2028. These values demonstrate how the 3D printing or additive manufacturing market took the world by storm only recently and is expected to continue growing in the future.
3D printing is becoming so prevalent in the world because of the abundance of uses various companies and industries across the world have for 3D printers. For instance, with the outbreak of the coronavirus pandemic, 3D printers became widely used and highly sought after for this rapid prototyping capabilities. In their Rapid Response Plan to the coronavirus crisis, the FDA included the use of 3D printing to deal with shortages in medical equipment required during the pandemic, such as personal protective equipment (PPE), face masks, and face shields.
It’s not even just the medical sector, but instead, numerous companies like General Electric Company (NYSE: GE), The Boeing Company (NYSE: BA), Ford Motor Company (NYSE: F), and NIKE, Inc. (NYSE: NKE) are making use of 3D printing technology. NIKE, Inc. (NYSE: NKE, for example, has been making 3D printed cleats, while Ford Motor Company (NYSE: F) uses 3D printers to print out engine covers for their automobiles.
With seemingly never ending possibilities for what one can do with a 3D printer, investors like Cathie Wood from Ark Invest have begun taking an interest in the market. Ark Invest even set up an exchange-traded fund for 3D printing, The 3D Printing ETF (BATS: PRNT). The fact that Wood’s last investment in an obscure market was in 2018 when she went all-in on Tesla, Inc. (NASDAQ: TSLA) in the EV industry might be an indicator that perhaps the 3D printing industry will soon be one everyone should keep their eye on.
Thus, we have compiled a list of the 10 best 3D printing and additive manufacturing stocks to buy.
Without further ado, here are the best 3D printing and additive manufacturing stocks to buy.
10. voxeljet AG (NASDAQ: VJET)
Number of Hedge Fund Holders: N/A
Voxeljet AG (NASDAQ: VJET) is a 3D printing company that provides 3D printers and on-demand parts services to industrial and commercial customers in Europe, the Americas, and internationally. Their Systems segment is responsible for the development, manufacture, and sale of 3D printers. The company ranks 10th on our list of the best 3D printing and additive manufacturing stocks to buy.
This April, Alliance Global Partners’ analyst Brian Kinstlinger initiated coverage of voxeljet AG shares with a Buy rating and a $27 price target. Kinstlinger also commented that the company’s new Voxeljet 3D printer was faster and promised better production quality as well.
For the first quarter of 2021, voxeljet AG had an EPS valued at -$1.82 versus estimates of -$0.66. The company’s revenue for the quarter stood at $4.76 million, and it has a gross profit margin of 30.07%. The stock has gained 22.14% in the past 6 months and 49.46% year to date. Voxeljet AG has a consensus Buy rating.
Like The Boeing Company, Ford Motor Company, Tesla, Inc., and NIKE, Inc., voxeljet AG is a stock worth investing in.
9. The 3D Printing ETF (BATS: PRNT)
Number of Hedge Fund Holders: N/A
The 3D Printing ETF (BATS: PRNT) is an exchange-traded fund launched and managed by Cathie Wood’s ARK Investment Management LLC. The fund invests in public equity markets and provides results that correspond with the performance of the Total 3D-Printing Index. The fund ranks 9th on our list of the best 3D printing and additive manufacturing stocks to buy.
Cathie Wood of ARK Investment Management
The 3D Printing ETF (BATS: PRNT) has $540.18 million in assets under management. Its price returns for the past year were up 79% compares to an increase of 36.38% for the S&P 500’s price returns in the same time period. The fund’s total returns in the past year were also up 79% compared to 10.4% for the S&P 500. The 3D Printing ETF (BATS: PRNT) has gained 16.86% in the past 6 months and 21.14% year to date.
Like The Boeing Company, Ford Motor Company, Tesla, Inc., and NIKE, Inc., The 3D Printing ETF (BATS: PRNT) is a stock worth investing in.
8. Materialise NV (NASDAQ: MTLS)
Number of Hedge Fund Holders: 8
Materialise NV (NASDAQ: MTLS) is a provider of additive manufacturing and medical software, alongside 3D printing services in the US, Europe, Africa, and the Asia-Pacific. The company operates through three segments, namely Materialise Software, Materialise Medical, and Materialise Manufacturing. The company ranks 8th on our list of the best 3D printing and additive manufacturing stocks to buy.
By the end of the first quarter of 2021, 8 hedge funds out of the 866 tracked by Insider Monkey held stakes in Materialise NV. The total value of their stakes came up to roughly $290 million. This is compared to 5 hedge fund holders in the previous quarter with a total stake value of about $467 million. Like The Boeing Company, Ford Motor Company, Tesla, Inc., and NIKE, Inc., Materialise NV is a stock worth investing in.
7. Autodesk, Inc. (NASDAQ: ADSK)
Number of Hedge Fund Holders: 66
Autodesk, Inc. (NASDAQ: ADSK) is an information technology company that provides 3D design, engineering, and software services across the world. It ranks 7th on our list of the best 3D printing and additive manufacturing stocks to buy.
This July, Mizuho’s Matthew Broome raised the firm’s price target on Autodesk, Inc. from $335 to $355, while keeping a Buy rating on the shares, in light of the company’s announcement of the availability of Tandem, its digital twin offering.
In the fiscal first quarter of 2022, Autodesk, Inc. had an EPS of $1.03, beating estimates by $0.03. The company’s revenue was $989.30 million, up 11.7% year over year and beating estimates by $24.54 million. Autodesk, Inc. has gained 25.25% in the past year as well.
By the end of the first quarter of 2021, 66 hedge funds out of the 866 tracked by Insider Monkey held stakes in Autodesk, Inc. worth roughly $3.05 billion. This is compared to 66 hedge funds in the previous quarter with a stake value of $3.52 billion.
Like The Boeing Company, Ford Motor Company, Tesla, Inc., and NIKE, Inc., Autodesk, Inc. is a stock worth investing in.
Polen Capital, an investment management firm, mentioned Autodesk, Inc. in its first-quarter 2021 investor letter. Here’s what they said:
“Adobe and Autodesk are both prime examples of the rotation that occurred during the quarter. Both are dominant businesses in their respective markets, which are experiencing structural tailwinds. Despite each business’s position of strength, the stocks of cyclicals and businesses with higher leverage and lower profitability were more favored this past quarter. In stark contrast, Adobe and Autodesk both have low leverage, high levels of profitability, high recurring revenues that mitigate cyclicality, and are both capital-light business models—all attributes we appreciate as investors. Adobe and Autodesk were also two of the top three performers within the Portfolio during 2020.”
6. Nano Dimension Ltd. (NASDAQ: NNDM)
Number of Hedge Fund Holders: 11
Nano Dimension Ltd. (NASDAQ: NNDM) is a provider of additive electronics in Israel and internationally. The company’s flagship product is the DragonFly lights-out digital manufacturing system. It ranks 6th on our list of the best 3D printing and additive manufacturing stocks to buy.
This April, Nano Dimension Ltd. acquired NanoFabrica, which brought 3D printing to micro and nano-manufacturing. The company will be paying out $54.9 million – $59.4 million to NanoFabrica’s shareholders for the deal. The company also acquired DeepCube for $40 million in cash and $30 million in ADSs in the same month. In June, Nano Dimension Ltd. was also granted the US patent for a double-sided and multilayered printed circuit board.
For the first quarter of 2021, Nano Dimension Ltd. had an EPS valued at -$0.02, beating estimates by $0.02. Revenue for the quarter was valued at $1.97 million, beating estimates by $0.97 million. The company has a gross profit margin of 57.24% and has gained 238.84% in the past year.
By the end of the first quarter of 2021, 11 hedge funds out of the 866 tracked by Insider Monkey held stakes in Nano Dimension Ltd.. The total value of their stakes came up to roughly $203 million. This is compared to 6 hedge fund holders in the previous quarter with a total stake value of about $89.7 million. Like The Boeing Company, Ford Motor Company, Tesla, Inc., and NIKE, Inc., Nano Dimension Ltd. is a stock worth investing in.
5. 3D Systems Corporation (NYSE: DDD)
Number of Hedge Fund Holders: 16
3D Systems Corporation (NYSE: DDD) is a provider of 3D printing and digital manufacturing solutions in the US, Europe, the Middle East, and the Asia Pacific. The company provides stereolithography, selective laser sintering, direct metal printing, multi-jet printing, and color jet printing through its 3D printers. It ranks 5th on our list of the best 3D printing and additive manufacturing stocks to buy.
By the end of the first quarter of 2021, 16 hedge funds out of the 866 tracked by Insider Monkey held stakes in 3D Systems Corporation. The total value of their stakes came up to roughly $315 million. This is compared to 15 hedge fund holders in the previous quarter with a total stake value of about $59.7 million.
4. Proto Labs, Inc. (NYSE: PRLB)
Number of Hedge Fund Holders: 18
Proto Labs, Inc. (NYSE: PRLB) operates as an e-commerce driven manufacturer of custom prototypes and 0n-demand production parts globally. Apart from 3D printing, the company also offers injection molding and computer numerical and control machining. It ranks 4th on our list of the best 3D printing and additive manufacturing stocks to buy.
In the first quarter of 2021, Proto Labs, Inc. had an EPS valued at $0.40, in line with estimates for the quarter. The company brought in $116.13 million in revenue and has a gross profit margin of 49.39%.
By the end of the first quarter of 2021, 18 hedge funds out of the 866 tracked by Insider Monkey held stakes in Proto Labs, Inc.. The total value of their stakes came up to roughly $515 million. This is compared to 16 hedge fund holders in the previous quarter with a total stake value of about $654 million.
Harding Loevner, an investment management firm, mentioned Proto Labs, Inc. in their first quarter of 2021 investor letter. Here’s what they said:
“Shares of Protolabs, a provider of 3D printing and other rapid prototyping and mold machining services for manufacturing, extended their strong performance from last year and soared early in January after the company announced its intention to acquire another on-demand digital manufacturing platform. We took advantage of their runup to sell our position.”
3. Desktop Metal, Inc. (NYSE: DM)
Number of Hedge Fund Holders: 20
Desktop Metal, Inc. (NYSE: DM) works with additive manufacturing solutions for engineers, designers, and manufacturers in the US, Europe, the Middle East, Africa, and the Asia Pacific. The company ranks 3rd on our list of the best 3D printing and additive manufacturing stocks to buy.
This March, Desktop Metal, Inc. aided and co-created a “breakthrough” powder for 3D printed aluminum to be used in the binder jetting AM technology. In the first quarter of 2021, Desktop Metal, Inc. beat EPS estimates with their $0.03 EPS value versus estimates of -$0.12. Revenue for the quarter stood at $11.31 million, representing a 2.58% growth year over year. The stock has gained 22.96% in the past year, and the stock has a consensus Buy rating.
By the end of the first quarter of 2021, 20 hedge funds out of the 866 tracked by Insider Monkey held stakes in Desktop Metal, Inc.. The total value of their stakes came up to roughly $216 million. This is compared to 24 hedge fund holders in the previous quarter with a total stake value of about $320 million.
Baron Growth Fund mentioned Desktop Metal, Inc. in its investor letter for the fourth quarter of 2020. Here‘s what they said:
“This quarter the Fund made a private investment in Desktop Metal, Inc., an emerging leader in additive manufacturing systems. Additive manufacturing, which is colloquially known as “3D printing,” has long tantalized manufacturers with the idea of a single machine capable of producing an unlimited number of parts with infinite degrees of complexity from a vast array of materials.
Traditional manufacturing techniques frequently rely on expensive equipment known as “tooling.” Tooling is limited in the range of parts it can make, and creates high levels of scrap, waste, and pollution. Manufacturers also have to make runs that exceed a minimum size in order to cover the significant upfront cost of the equipment. We believe that additive manufacturing has the potential to improve on many of these shortcomings. A single, flexible additive manufacturing system can reduce the required investment in tooling, eliminate scrap, waste, and inventory, decrease time-to-market, and reduce complexity. Ultimately, additive manufacturing can reduce the total cost to make a part of product…” (Click here to view the full text)
2. Stratasys Ltd. (NASDAQ: SSYS)
Number of Hedge Fund Holders: 24
Stratasys Ltd. (NASDAQ: SSYS) offers connected and polymer-based 3D printing solutions to customers, alongside 3D printing systems like polyjet printers, FDM printers, stereolithography printing systems, and programmable photopolymerization printers for faster prototyping. The company ranks 2nd on our list of the best 3D printing and additive manufacturing stocks to buy.
On June 15th, Stratasys Ltd. announced the launch of two new PolyJet 3D printers called the Stratasys J35 Pro and J55 Prime, alongside new software solutions. The company is now accepting orders for the two new printers. In the first quarter of 2021, Stratasys Ltd. had an EPS valued at -$0.06 versus the -$0.07 estimate and brought in $134.19 million in revenue. The company also has a gross profit margin of 43.56% and has gained 7.97% year to date.
By the end of the first quarter of 2021, 24 hedge funds out of the 866 tracked by Insider Monkey held stakes in Stratasys Ltd.. The total value of their stakes came up to roughly $481 million. This is compared to 16 hedge fund holders in the previous quarter with a total stake value of about $352 million.
Alger, an investment management firm, mentioned Stratasys Ltd.. Here‘s what the fund said:
“Short position Stratasys also contributed to performance. Stratasys is one of the larger 3D printing companies. While additive manufacturing (3D printing) is a revolutionary concept, it has only seen its primary adoption for manufacturing prototypes and test parts, not high-volume end-use parts. Unfortunately for incumbents like Stratasys, additive manufacturing has continued to attract capital and dozens of new entrants have emerged with new technologies targeting specific applications. Industry pioneers like Stratasys have seen key patents expire and have lost market share to new competition. As a result of these factors, Stratasys has not grown for five years. Some industry participants believe that Stratasys’ plastic extrusion technology is simply too slow to be an acceptable solution for higher volume manufacturing. The short position contributed to portfolio returns when Stratasys’ shares declined due to year-over-year revenue contraction, continuing market share losses, a talent exodus, the issuance of new shares via a secondary offering, and no significant progress on developing new opportunities in promising additive verticals like metal and dental.”
1. HP Inc. (NYSE: HPQ)
Number of Hedge Fund Holders: 43
HP Inc. (NYSE: HPQ) is a technology company providing personal computing and other access devices, imaging, and printing products. The company has launched its 3D printing strategy, joining the additive manufacturing sector in 2016 and launching a range of polymer 3D printing systems, including Metal Jet technology. The company ranks 1st on our list of the best 3D printing and additive manufacturing stocks to buy.
This June, HP Inc. acquired HyperX, Kingston Technology’s former gaming division. The acquisition is supposed to help growth in HP Inc.’s (NYSE: HPQ) Personal Systems Business. In the first quarter of 2021, the company had an EPS valued at $0.92 versus estimates of $0.66, and its revenue for the quarter valued at $15.65 billion, showcasing a 6.97% growth year over year. The company has a gross profit margin of 19.38% and a forward PE ratio of 8.35. The stock gained 20.9% in the past 6 months and 21.15% year to date.
By the end of the first quarter of 2021, 43 hedge funds out of the 866 tracked by Insider Monkey held stakes in HP Inc.. The total value of their stakes came up to roughly $1.53 billion. This is compared to 39 hedge fund holders in the previous quarter with a total stake value of about $1.05 billion.
You can also take a look at 10 Best Stocks for Beginners with Little Money and 15 Most Valuable Technology Companies in the World.
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This article is originally published at Insider Monkey.
