The 3D printing industry is rapidly growing, with a projected compound annual growth rate of 23.3% through 2030 and projected revenue reaching $88.28 billion. Despite this potential, investor sentiment in 3D printing stocks has declined since 2021, as seen in the 3D Printing ETF (PRNT). However, several promising 3D printing stocks are well-positioned to capitalize on emerging trends in additive manufacturing, prototyping, and computer-aided design.
This article will explore three top 3D printing stocks poised for growth in 2024: Desktop Metal (DM), Autodesk (ADSK), and Altair Engineering (ALTR). We’ll delve into their innovative offerings, including Desktop Metal’s dental market initiative ScanUp, Autodesk’s design software facilitating 3D modeling and printing, and Altair’s product development suite supporting 3D printing processes. Additionally, we’ll examine the broader trends and advantages driving the 3D printing sector’s expansion.
Top 3D Printing Stock 1
Stratasys (SSYS): A Pioneering 3D Printing Company with Solid Financials
Stratasys (SSYS) is a leading player in the 3D printing industry, offering a diverse range of products and services, including hardware, software, and materials. The company’s strong financial performance sets it apart, with a forward EBITDA growth rate of 31%, significantly outpacing the sector median of 6.79% by a staggering 346%.
In its recent Q3 earnings report, Stratasys exceeded analyst estimates, posting non-GAAP earnings per share (EPS) of $0.04 and revenue of $162.1 million. This impressive performance has not gone unnoticed by analysts, with TipRanks suggesting a Strong Buy rating for the stock, indicating a potential upside of 40%.
One of the original pioneers in 3D printing, Stratasys boasts a wide array of printers and supporting design software. The company’s sales are rebounding as it secures new manufacturing contracts, further solidifying its position in the market.
Despite its strong fundamentals and growth prospects, Stratasys (SSYS) is currently trading at a discount to its book value, presenting an attractive entry point for investors. With a broad range of 3D printing products and services, a robust balance sheet, and a compelling valuation, Stratasys emerges as a compelling investment opportunity in the rapidly expanding 3D printing sector.
Top 3D Printing Stock 2
Velo3D (VLD): Pioneering Metal 3D Printing Solutions
Velo3D (VLD) is a prominent player in the metal 3D printing market, offering cutting-edge solutions that cater to the growing demand for advanced manufacturing capabilities. With a decent balance sheet and a consensus moderate buy rating from analysts, Velo3D presents an attractive investment opportunity within the 3D printing sector.
Nano Dimension (NNDM): Additive Electronics Manufacturer on the Rise
- Impressive Financial Performance:
- Nano Dimension (NNDM) reported a remarkable 33% year-over-year increase in Q2 revenue, reaching $14.74 million.
- The company’s adjusted gross margin saw a significant improvement, rising from 40% to 48% year-over-year.
- Nano Dimension substantially reduced its net loss, from $39.73 million to $9.12 million.
- Innovative Product Offerings:
- Known for its DragonFly IV 3D printer, Nano Dimension is an additive electronics manufacturer at the forefront of advanced manufacturing technologies.
- Strategic Corporate Moves:
- Nano Dimension has actively engaged in corporate strategy, opposing the proposed merger between Stratasys and Desktop Metal, showcasing its commitment to maintaining a competitive edge in the industry.
Desktop Metal: Promising Long-Term Potential in Metal Fabrication
With a market capitalization of $262.74 million, Desktop Metal focuses on metal fabrication technology, offering innovative solutions for various industries. Although its recent IPO has underperformed since going public, Desktop Metal’s long-term prospects remain promising, making it a potential investment opportunity for those with a patient outlook.
Top 3D Printing Stock 3
Shapeways (SHPW): High-Risk, High-Reward Opportunity
Shapeways (SHPW) presents a high-risk, high-reward opportunity in the 3D printing space, with a very low market cap but a strong balance sheet. The company offers a unique proposition as a digital manufacturing platform, enabling customers to upload designs and have them 3D printed on-demand.
Altair Engineering (ALTR): Simulation Tools for Additive Manufacturing
- Solid Financials:
- Altair Engineering (ALTR) boasts a market capitalization of $6 billion.
- In Q3, the company reported earnings per share of $0.14, beating estimates by $0.10.
- Revenue increased 12.3% year-over-year to $134 million, outperforming expectations.
- Impressive Growth Metrics:
- EBITDA showed a remarkable 118% year-over-year growth, exceeding the sector median by 2977%.
- Operating cash flow growth of 265% eclipses the sector median of 17.41% by 1,419%.
- Additive Manufacturing Impact:
- Altair Engineering offers a suite of simulation tools that impact the additive manufacturing process.
- These tools facilitate the design, optimization, and analysis of 3D printed components and products.
Xometry (XMTR): AI-Powered Marketplace for Custom Manufacturing
Xometry (XMTR) operates a marketplace for on-demand manufacturing of prototyping and mass production, with a market capitalization of $844 million. The company has demonstrated strong sales growth, nearly doubling its active buyers from 28,130 in 2021 to 55,458 in 2023. Notably, Xometry introduced an AI-powered marketplace to provide faster quotes for custom 3D printed designs.
| Company | Market Cap | Key Offerings |
|---|---|---|
| Shapeways (SHPW) | Low market cap, strong balance sheet | Digital manufacturing platform for 3D printing on-demand |
| Altair Engineering (ALTR) | $6 billion | Simulation tools impacting additive manufacturing processes |
| Xometry (XMTR) | $844 million | AI-powered marketplace for custom manufacturing and prototyping |
While these companies present unique opportunities within the 3D printing sector, it’s crucial to evaluate their risk profiles and growth potential before making investment decisions.
Trends in the 3D Printing Sector
Rapid Growth and Adoption
The 3D printing market is expected to experience significant growth in the coming years, with estimates pointing to a doubling in annual revenue from additive manufacturing between 2022 and 2026. The market size reached $14.7 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 18.7%, reaching $68.8 billion by 2032. This rapid growth is driven by technological advancements, materials innovation, and rising demand for rapid prototyping and on-demand manufacturing.
Diverse Applications and Customization
3D printing, or additive manufacturing, is revolutionizing various industries by enabling customization, reducing waste, and streamlining production. Key sectors adopting 3D printing include manufacturing, healthcare, automotive, aerospace, construction, and consumer goods. The ability to produce personalized medical implants, prosthetics, and dental devices is driving adoption in the healthcare sector.
Integration into Production Processes
While initially used for prototyping, 3D printing is now being integrated into production applications across industries to mitigate supply chain disruptions, enabling local manufacturing and reducing logistics costs. The consumer goods industry, particularly electronics, is increasingly adopting 3D printing for faster product development and innovation.
Technological Advancements and Materials Innovation
- Automation and AI Integration:
- The integration of AI and automation in additive manufacturing (AM) is improving precision and speed, facilitating mass production.
- There is a growing emphasis on developing new materials and software for AM, expanding the possibilities for manufacturers.
- Sustainable Practices:
- The industry is focusing on developing sustainable policies and practices within the AM industry.
- The surge in advanced materials like biodegradable polymers and high-performance alloys is enabling intricate and durable structures.
- Printing Technology Improvements:
- The industry expects progress in printing technology, with faster speeds, larger sizes, and improved stability.
- Diverse materials like biodegradable polymers and high-performance alloys are allowing for intricate and durable structures.
Ecosystem Development and Workforce Training
The success of 3D printing hinges on the synergy within a complete ecosystem involving hardware, software, materials, and training. The industry is focusing on training and workforce development to overcome integration challenges and promote broader adoption of AM.
Emerging Applications and Trends
- Large-scale 3D Printing:
- There is a trend towards using 3D printing in construction and other sectors, with large-scale projects and multifunctional 3D construction printers.
- Mass Customization:
- 3D printing is enabling mass customization of personalized products at scale.
- Integration with Other Technologies:
- The integration of 5G technology with 3D printing processes is streamlining production workflows.
- Printers are integrating more apps to simplify workflows, access cloud storage, and perform editing tasks directly on the devices.
These trends highlight the transformative potential of 3D printing across various sectors, driven by technological advancements, materials innovation, and the development of a robust ecosystem.
Advantages of 3D Printing Stocks
Customization and Design Flexibility
One of the key advantages of investing in 3D printing stocks is the technology’s ability to produce complex or customized shapes that are difficult or impossible to create with traditional manufacturing methods. This design flexibility opens up new possibilities for innovation and personalization across various industries, from healthcare to consumer goods.
Rapid Prototyping and Cost Savings
3D printing enables the quick and low-cost creation of physical prototypes, which is particularly valuable for small businesses and individual consumers. This capability streamlines the product development process, allowing for faster iterations and reducing the time-to-market for new products.
Long-term Growth Potential
While the 3D printing industry may experience volatility in the short term, investing in 3D printing stocks could provide significant payoffs in the long run (years and decades). As the technology continues to evolve and find new applications, early investors in promising 3D printing companies may reap substantial rewards.
- Diverse Applications:
- The versatility of 3D printing technology allows for its adoption across a wide range of industries, including manufacturing, healthcare, aerospace, automotive, and consumer goods.
- This diversification mitigates the risk associated with investing in a single industry and provides opportunities for growth in multiple sectors.
- Technological Advancements:
- Ongoing research and development in 3D printing materials, software, and hardware are expected to drive further innovation and efficiency improvements.
- Companies at the forefront of these advancements may gain a competitive edge and experience significant growth.
- Sustainability and Efficiency:
- 3D printing offers the potential for more sustainable and efficient manufacturing processes by reducing waste and enabling on-demand production.
- As environmental concerns and resource conservation become increasingly important, companies leveraging 3D printing technology may benefit from this trend.
While investing in 3D printing stocks carries risks, as with any emerging technology, the potential advantages in terms of design flexibility, rapid prototyping, cost savings, and long-term growth prospects make this sector an attractive investment opportunity for those with a long-term perspective.
Conclusion
The 3D printing industry is poised for remarkable growth, driven by technological advancements, innovative materials, and increasing adoption across diverse sectors. While investors should exercise caution and conduct thorough research, promising companies like Stratasys, Velo3D, and Altair Engineering present compelling opportunities to capitalize on the transformative potential of additive manufacturing. As the industry matures, early investors in these pioneering companies could reap substantial rewards in the years to come.
The advantages of 3D printing, including design flexibility, rapid prototyping, cost savings, and sustainability, make it an attractive investment opportunity. However, investors should carefully evaluate the risk profiles and growth prospects of individual companies before making investment decisions. By staying informed and adopting a long-term perspective, savvy investors can potentially benefit from the continued evolution and widespread adoption of this revolutionary technology.
