We recently compiled a list of the 10 Best 3D Printing Stocks To Buy Right Now. In this article, we are going to take a look at where L3Harris Technologies, Inc. (NYSE:LHX) stands against the other 3D printing stocks.
3D printing, sometimes known as additive manufacturing, is the process of layering materials to create three-dimensional objects and structures using computer-aided design (CAD) technology. Unlike traditional manufacturing procedures, additive manufacturing builds 3D objects layer by layer using a range of materials such as metal, plastic, concrete, and paper. Although the technology has been around for a few years, the industry has expanded massively in recent years due to its limitless applications in commercial manufacturing and large-scale projects.
According to Proto Labs’ 2024 3D Printing Trend Report, the 3D printing market was valued at $22.14 billion on average in 2023, an increase of 26.8% from $17.46 billion in 2022. This was 10% more than the company’s previous forecast, which predicted a $19.9 billion market size in 2023 with a 17% compound annual growth rate (CAGR). The research also suggests a CAGR of 21%, with the market reaching $24.8 billion by the end of 2024 and $57.1 billion by 2028. This rapid market growth rate was also highlighted in replies to the 2024 edition of Proto Labs Network’s annual survey of over 700 members of its worldwide engineering community. Around 70% of the survey’s respondents reported printing more components in 2023 than in 2022.
Artificial intelligence is another potential boon for 3D printing. AI’s development has been so broad and disruptive in practically every area that it’s almost a guarantee it will have an influence on 3D printing as well. AI’s revolutionary prospects, such as spotting faults during construction, creating elaborate designs, and even optimizing material qualities, are unquestionably fascinating. However, Adam Hecht, co-founder and head of Additive Manufacturing at DIVE, feels that artificial intelligence will be most useful in hardware devices. He said the following:
“Right now, we have a lot of smart printers that are very dumb. They will say something is wrong without specifying what it is. That’s very frustrating for a lot of consumers and companies. But as the systems get smarter, they can actually help users to self-diagnose, or dial in new materials, for example—I think that’s where we’re going to see a lot more adoption.”
3D Printing in Healthcare
As an additive technology, 3D printing has made its way into most, if not all, industries, but it has proven to be most effective in the healthcare industry, due to its applications in the manufacture of precise prosthetics for amputees, fitted perfectly to the individual’s requirements. Another key advantage of 3D printing, especially with regard to medical device development, is its capacity to facilitate rapid prototyping and iterative design. Historically, bringing novel medical equipment to market has required long design versions, tooling techniques, and testing stages. However, 3D printing accelerates the process by allowing designers to quickly construct prototypes and revise concepts in response to feedback and testing results. Given this, it’s no wonder that the usage of 3D printing in healthcare is gradually increasing. According to Grand View Research, the healthcare 3D printing market was valued at $8.52 billion in 2023 and is expected to increase at a CAGR of 18.5% between 2024 and 2030.
Our Methodology
For our list of the 10 best 3D printing stocks to buy, we used financial media reports and ETFs to narrow down on companies involved in 3D printing, additive manufacturing, or technologies related to 3D printing operations. The names on this list are ranked in ascending order according to the hedge fund sentiments surrounding them, using data from Insider Monkey’s Q4 2024 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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L3Harris Technologies, Inc. (NYSE:LHX)
Number of Hedge Fund Holders: 48
L3Harris Technologies, Inc. (NYSE:LHX) is a major American technology company noted for its expertise in surveillance systems, microwave weapons, and electronic warfare. The firm uses metal 3D printing to develop and manufacture metal alloy additive manufacturing parts for aerospace and defense propulsion and power systems.
L3Harris Technologies, Inc. (NYSE:LHX) posted fourth quarter revenues of $5.5 billion, in line with market forecasts, while adjusted profits per share came in at $3.47, higher than the average estimate of $3.42. However, despite beating forecasts, Citi analysts decreased the company’s price target to $285 but maintained a buy rating. Meanwhile, Bernstein analysts reiterated an Outperform rating and a $267 price target.
Late last year, L3Harris Technologies, Inc. (NYSE:LHX) delivered the first RL10 engine with an additively built copper thrust chamber to United Launch Alliance (ULA), a testament to the company’s capabilities in 3D printing and additive manufacturing. The most recent iteration, the RL10E-1, employs Additive Manufacturing to reduce the number of components in the thrust chamber by 98%. The engine will be used on a ULA Vulcan rocket this year.
Overall LHX ranks 5th on our list of the best 3D printing stocks to buy right now. While we acknowledge the potential of LHX as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LHX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.