In this article, we will be looking at the 5 best 3D printing stocks to buy now. If you want to see our detailed analysis on the additive manufacturing industry, you can go directly to the 10 Best 3D Printing Stocks to Buy Now.
5. Desktop Metal, Inc. (NYSE: DM)
Number of Hedge Fund Holders: 20
Desktop Metal, Inc. (NYSE: DM) provides additive manufacturing solutions for engineers, designers, and manufacturers in the US, Europe, the Middle East, Africa, and the Asia Pacific. The company ranks 5th on our list of the best 3D printing stocks to buy now.
This June, Credit Suisse initiated coverage of Desktop Metal, Inc. (NYSE: DM) with a Neutral rating and a $14 price target. Analyst Matthew Cabral has commented that the company has great potential ahead in the 3D printing market. Desktop Metal, Inc. (NYSE: DM) is also reportedly joining the Russell 2000 Index as of the same month.
In the first quarter of 2021, Desktop Metal, Inc. (NYSE: DM) beat EPS estimates by $0.15 with their $0.03 EPS. Revenue for the quarter stood at $11.31 million, representing a 2.58% growth year over year, and beating estimates by $1.39 million. The stock has gained 2.30% in the past year as well.
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. (NYSE: DM). 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. (NYSE: DM) 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 see the full text)
4. Stratasys Ltd. (NASDAQ: SSYS)
Number of Hedge Fund Holders: 24
Stratasys Ltd. (NASDAQ: SSYS) provides 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 4th on our list of the best 3D printing stocks to buy now.
On June 15th, Stratasys Ltd. (NASDAQ: SSYS) announced the launch of two new PolyJet 3D printers called the Stratasys J35 Pro and J55 Prime, alongside new software solutions. The stock also received a Buy rating and a $33 price target from Lake Street this March.
In the first quarter of 2021, Stratasys Ltd. (NASDAQ: SSYS) had an EPS of -$0.06 beating estimates by $0.01, and brought in $134.19 million in revenue, beating estimates by $1.92 million. The company also has a gross profit margin of 43.56% and has gained 51.48% in the past year.
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. (NASDAQ: SSYS). 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. (NASDAQ: SSYS). Here’s what they 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.”
3. HP Inc. (NYSE: HPQ)
Number of Hedge Fund Holders: 43
HP Inc. (NYSE: HPQ) is a technology company that 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 3rd on our list of the best 3D printing stocks to buy now.
Bernstein’s Toni Sacconaghi has commented this July that HP Inc.’s (NYSE: HPQ) current commentary on M&A has been constructive, and he thinks that the company’s market cap, which has grown by 34% in the past 19 months, may even enable it to buy Xerox at a 30% premium. The firm and analyst have a Market Perform rating on HP Inc. (NYSE: HPQ) with a $32 price target, while Citigroup has a Buy rating with a $40 price target on the shares, as of this May.
In the fiscal second quarter of 2021, the company’s EPS was $0.93 beating estimates by $0.04, and its revenue for the quarter was valued at $15.88 billion, also beating estimates by $916.77 million. The company has a gross profit margin of 19.38% and a forward PE ratio of 8.35. The stock gained 16.06% in the past 6 months and 24.1% 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. (NYSE: HPQ). 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.
2. Raytheon Technologies Corporation (NYSE: RTX)
Number of Hedge Fund Holders: 58
Raytheon Technologies Corporation (NYSE: RTX) is an aerospace and defense company that provides systems and services for commercial, military, and government customers across the world. The company is branching out into the 3D printing sector with its 3D printed guided missile. It ranks 2nd on our list of the best 3D printing stocks to buy now.
This June, Jefferies raised its price target on Raytheon Technologies Corporation (NYSE: RTX) to $105, while retaining its Buy rating on the shares, in light of hosing investor meetings with the company’s CEO and CFO. Raytheon Technologies Corporation (NYSE: RTX) also has Buy ratings at Langenberg and Redburn.
In the first quarter of 2021, Raytheon Technologies Corporation (NYSE: RTX) had an EPS of $0.90, beating estimates by $0.07. The company’s revenue was $15.25 billion, missing estimates by -$81.84 million, and it has a gross profit margin of 14.82%. The stock has gained 22.41% in the past 6 months and 24.86% year to date as well.
As of the end of the first quarter of 2021, 58 hedge funds out of the 866 tracked by Insider Monkey held stakes in Raytheon Technologies Corporation (NYSE: RTX) worth roughly $2.49 billion. This is compared to 59 hedge funds in the previous quarter with a total stake value of about $2.72 billion.
Davis Funds, an investment management firm, mentioned Raytheon Technologies Corporation (NYSE: RTX) in its fourth-quarter 2020 investor letter. Here’s what they said:
“In today’s uncertain economy, we believe we have found such businesses trading at bargain prices in two sectors: industrials and financials. In the industrial space, concerns about the impact of the economic downturn on short-term profitability led to a wave of selling in a select group of leaders with durable competitive advantages, long records of profitability and bright long-term prospects. Companies like Raytheon Technologies is a wonderful example of attractive investments in this sector.”
1. Autodesk, Inc. (NASDAQ: ADSK)
Number of Hedge Fund Holders: 66
Autodesk, Inc. (NASDAQ: ADSK) is a provider of 3D design, engineering, and entertainment software and services across the world. The company ranks 1st on our list of the best 3D printing stocks to buy now.
This June, Rosenblatt analyst Blair Abernethy commented on Autodesk, Inc. (NASDAQ: ADSK) and Altium, saying that the two fit each other well strategically. The firm has a Buy rating on Autodesk, Inc. (NASDAQ: ADSK) shares and a $320 price target to boot.
In the fiscal first quarter of 2022, Autodesk, Inc. (NASDAQ: ADSK) had an EPS of $1.03, beating estimates by $0.09. The company’s revenue was $989.30 million, up 11.7% year over year and beating estimates by $24.54 million. Autodesk, Inc. (NASDAQ: ADSK) has a gross profit margin of 91.95% and has gained 18.64% in the past year.
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. (NASDAQ: ADSK). The total value of their stakes came up to roughly $3.05 billion. This is compared to 66 hedge fund holders in the previous quarter with a total stake value of about $3.52 billion.
Polen Capital, an investment management firm, mentioned Autodesk, Inc. (NASDAQ: ADSK) 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.”
You can also take a look at 10 Best Stocks for Beginners with Little Money and 15 Most Valuable Technology Companies in the World.
