6 of the best 3D printing stocks to buy | Invest

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In 2022, most investors have been eager to sell off their most aggressive assets. As an example, consider that if the entire S&P 500 is down just over 20%, we can see a big difference between the types of stocks that are falling and those that are holding up; The top ETFs in the utilities or consumer staples sector are down only around 10% this year, while the average tech sector fund is down almost 30%.

With that in mind, it’s worth noting that it’s risky to dive headfirst into a dynamic, growth-oriented investment area like 3D printing stocks right now. However, with very cheap valuations and a continued long-term rise in this fascinating manufacturing model, it might be a good idea to start looking for bargains. After all, consumer staples and utilities may be a good place to hide over the next few months, but they won’t provide the long-term growth that many investors are looking for.

In case you’re unfamiliar with 3D printing, the term is simply a fancy way of referring to “on-demand” manufacturing. Instead of printing a two-dimensional brochure or image on paper and ink, you simply use specialized design software and manufacturing equipment to cut or assemble materials into real goods or parts. One of the most compelling applications of this technology is the use of 3D printers by aid groups like Enabling the Future to provide inexpensive prosthetics to children with disabilities in poor corners of the world, offering personalized devices to cheaply and quickly.

Beyond the narrative, however, investors should be interested in the numbers. A recent report estimates that the 3D printing market is expected to grow from approximately $11.5 billion in 2020 to $47.5 billion by 2028, a compound annual growth rate of approximately 20%.

There is always risk in any investment, so buyer beware – especially in a difficult market environment. But if you’re interested in 3D printing applications or the growth potential of these companies, here are six of the best 3D printing stocks to buy:

  • Proto Labs Inc. (symbol: PRLB)
  • Office Metal Inc. (DM)
  • Stratasys Ltd. (SSYS)
  • Nano Dimension Ltd. (NNDM)
  • Materialize NV (MTLS)
  • 3D Systems Corp. (DDD)

Proto Labs is an approximately $1 billion “digital fabricator” of custom prototypes and offers on-demand production of parts using 3D printing, laser cutting and computer imaging technologies. The Minnesota company was established in 1999 and has evolved to follow the most advanced processes (if you forgive me the pun).

PRLB’s evolution from a more traditional manufacturer to 3D printing stock means it can participate in the rise of this technology but also build on existing business and customer relationships. As a result, it is comfortably profitable in addition to charting future growth; earnings per share are expected to rise from $1.55 last year to $1.67 this year and then to $2.04 in fiscal 2023. Thanks in part to this financial data, the stock does not has fallen only about 10% this year through June 17, while the broader S&P 500 has crashed about twice. so hard.

In 2021, Proto Labs acquired the Netherlands-based hubs in a deal worth $280 million to bolster its network of 3D printing partners. This should also ensure continued growth in the years to come for this dynamic stock.

One of the smaller names on this list, DM is valued at just $700 million. And part of the reason for the modest valuation is that Desktop Metal shares are down more than 50% so far in 2022 – with the majority of the pain coming after the release of first-quarter results that hinted at concerns about the P-50 production system.

DM is a great example of the promise as well as the risks associated with 3D printing stocks. The company is a hardware company focused on “additive manufacturing technologies” for engineers, designers and producers around the world. This includes small-scale Studio System technologies as well as mass production potential. In fiscal 2022, revenue is expected to grow more than 120%, and another 34% increase in revenue is expected in fiscal 2023. However, the business is still burning money and fears of higher borrowing costs with the risk of a recession that could create headwinds weighed heavily on the stock.

It’s definitely a high-risk investment in the space, but if you want a 3D printing stock that’s showing impressive expansion right now, then Desktop Metal might still be worth watching after its recent declines.

One of the oldest and most respected names in 3D printing, Stratasys is the brand behind the Makerbot and associated Thingiverse community of 3D printing schematics.

The company operates consistently in the black, with revenue growth projections in the mid-double digits this year and next. Stocks have suffered along with the rest of Wall Street this year, but more concerning is that they are down 58% from their short-lived 2021 peak, as of June 17.

That’s partly because Wall Street has been a bit disappointed by the Stratasys buying spree lately. Specifically, in early 2021, he announced the acquisition of industrial large-frame stereolithography company RP Support for $150 million, but predicted it would only marginally benefit the company’s growth plans given the specialized nature of this industry.

It’s a habit for SSYS as the company has been around since 1989 and has grown steadily through acquisitions and partnerships over the years. A few of the biggest include deals with Objet, Solid Concepts, Massivit 3D, and Inkbit, among others. Over time, these deals could pay off, but there’s clearly a risk here as Stratasys tries to consolidate competitors and carve out a leadership position in the industry.

Nano Dimension Ltd. (NNDM)

Another smaller and still unprofitable 3D printing stock is Nano Dimension. The company is listed on the Nasdaq, but has all its potential because it is indeed a startup in this high-growth sector.

To illustrate this, consider that in the third quarter of fiscal 2021, Nano Dimension reported that its revenue more than doubled year-over-year thanks to higher sales of its printing systems. 3D DragonFly and its Fabrica 2.0 microcoin machines. Now, also consider that the company is only expected to register around $5 million in revenue this year – yes, five without zero after that.

Revenue projections for fiscal year 2022 are over $41 million, which would be a phenomenal percentage increase. But obviously that’s from a low base, with little room to maneuver if things go wrong.

The NNDM has crashed over 60% in the past 12 months as Wall Street is decidedly ‘risk free’. But if you’re adventurous, this startup is a way to get into the bottom tier of 3D printing stock that comes with high risk but high potential rewards.

Approximately $800 million in 3D printing inventory Materialize provides software and support for 3D printing with specific biotech applications as a specialty. The company has its roots in Belgium in the early 1990s, where it first focused on medical technology and 3D imaging of the human body. In the 2000s, he signed a major contract with a hearing aid supplier to provide custom, on-demand manufacturing of these devices based on each patient’s specific needs – and the rest is history.

Materialize might seem like one of the more stable stocks on this list, with steady double-digit revenue growth and consistent, albeit modest, profitability. However, it also took it on the chin in 2022 with declines of more than 44% year-to-date, to June 17.

However, if you want to play long-term on 21st century healthcare, it might be worth taking a look at MTLS after its recent declines. It serves medical device companies, hospitals, universities, and research institutes, so theoretically it’s not as tied to cyclical manufacturing trends as some of the other names on this list.

Last but not least, DDD is perhaps the most well-known 3D printing medium on this list, partly because of its obvious name. But the billion-dollar company is perhaps the riskiest of the bunch in many ways.

For starters, 3D Systems is down more than 50% this year to match or exceed the declines of its peers, as of June 17. Plus, it’s hard to say above breakeven based on the most recent financial data, with earnings estimated at a penny a share this fiscal year. Worse still, revenue should actually decline year over year for the company.

Details matter here, though. 3D Systems’ revenue is down in part because it is selling non-core assets – and excluding the parts of the business that were divested, core revenue was actually up 10% from year over year in the most recent period.

That said, it’s always a bet to bet on a company in a buoyant industry and doubly on a company that goes “all in” during a period of extreme volatility instead of relying on legacy assets to smooth things out. . Still, if you want to play the 3D printing revolution, then this stock is a leader to consider.

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