Supply chain issues have given the 3D printing industry a major opportunity. 3D printing is a promising technological platform. Many…
Supply chain issues have given the 3D printing industry a major opportunity.
3D printing is a promising technology platform. Many have long considered it just a hobby, a niche for a few people with too much free time. In recent years, however, 3D printing has rapidly gained popularity. Today, industries such as manufacturing, education, and healthcare are beginning to incorporate the unique versatility of 3D printing into their workflows. Additionally, the pandemic has disrupted supply chains, increasing the usefulness of on-site manufacturing options for key parts. As commercial adoption of 3D printing grows, the potential market for stocks in this industry grows with it. Investors may have written it off, given that the flagship exchange-traded fund, 3D Printing ETF (ticker: PRNT), has significantly underperformed the S&P 500 and tech stocks in recent years and the first part of 2022 has not been kind to 3D printing funds. However, 3D printing could still disrupt manufacturing and become mainstream in the long term. That would be great news for those six 3D printing stocks to buy.
3D Systems Corp. (DDD)
3D Systems is one of the pioneers in the industry. Company co-founder Chuck Hull was one of the inventors of the stereolithography 3D printer and was granted a patent for it in 1986. 3D Systems formed soon after and has been publicly traded ever since. over 30 years. For much of that time, the stock did not produce returns. However, in 2012, 3D printing caught the public eye and market share grew 10x. The shares faded thereafter before climbing to around $48 per share by the end of 2021. DDD is now trading at just over $10 with a price-to-earnings ratio, or P/E, of around 5, meaning you’re only paying $5 per dollar of annual revenue. earnings. For comparison, Tesla Inc. (TSLA) investors pay around $90 per share of earnings. 3D Systems has built a great business, but it hasn’t always been profitable. 3D Systems has a well-known brand and a large existing customer base, but it is always on the lookout for a significant breakthrough that will allow it to take the next step in the evolution of its business.
Straumann Holding AG (SAUHY)
Straumann is a European company and one of the leaders in turning the potential of 3D printing into concrete results. Straumann is a long-standing supplier to the dental industry. It provides goods such as implants, biomaterials, orthodontic equipment and dental software to its customers. Dentistry is rapidly adopting digital services for a variety of its most common treatments. Straumann specifically built a 3D printing system that allows dentists to simply scan a patient’s mouth. Then the 3D printer can determine exactly the necessary implant and produce it directly in the office. This greatly facilitates a dentist’s workflow, allowing them to treat more patients and provide more personalized service. Straumann is a big company, so 3D printing is far from the only driver of the company’s commercial success. Anyway, it is one of the innovators in transforming 3D printing from the realm of theory to practice.
Stratasys Ltd. (SSYS)
Stratasys is another company directly involved in the design and manufacture of 3D printing equipment. Revenue increased in the first quarter compared to the same period in 2021, and the company has a strong balance sheet with more than $475 million in cash and cash equivalents. The company serves multiple industries, including aerospace, automotive, medical and dental, and recently launched the fashion industry’s first direct-to-garment 3D printer. If the golden age of 3D printing is about to begin, Stratasys stands out as one of the winners.
Autodesk Inc. (ADSK)
Autodesk is a software-as-a-service company focused on graphic design. It offers an easy way to play the 3D printing industry. After all, manufacturing companies need software to design and coordinate their 3D printing operations. Autodesk has several offerings in this area. Fusion360 is a cloud-based computer-aided design software for product design. NetFabb from Autodesk is a software package for additive manufacturing and design. And the list continues. Autodesk is not pure play on 3D printing, as its software is used for many other purposes as well. However, unlike most 3D printing companies, Autodesk is already highly profitable and has a huge stable customer base. This makes Autodesk one of the safest ways to invest in 3D printing.
Proto Labs Inc. (PRLB)
Like Autodesk, Proto Labs does more than 3D printing. It also provides injection molding, CNC machining and sheet metal fabrication services. The company increased its revenue from $126 million in 2012, the year the stock went public, to over $488 million in 2021. In 2021, it acquired the platform online manufacturing 3D Hubs, creating what Proto Labs called the world’s largest digital. manufacturing platform. Like other 3D printing stocks, PRLB stock has been floundering lately. It soared to over $200 per share in early 2021 and has been on a downward trend ever since, but things could change for the company if it continues to expand its customer base.
Ansys Inc. (ANSS)
Like Autodesk and Proto Labs, Ansys is far from pure play on 3D printing. Ansys is a large software company focused on engineering and simulation. Ansys generates nearly $2 billion in revenue per year and is reasonably profitable. The company already dominates many niche applications and has a large and loyal customer base. He recently announced the acquisition of Motor Design Ltd. to strengthen Ansys’ electrical machinery design services. In the area of software, the company offers 3D printing simulation software to help companies with their additive manufacturing processes. The software covers three stages of the printing process: design, preparation and printing. While Ansys is big enough that its 3D printing business won’t make or break the company, it could give the company a big tailwind as the industry goes mainstream.
6 of the best 3D printing stocks to buy now:
— 3D Systems Corp. (DDD)
—Straumann Holding (SAUHY)
— Stratasys Ltd. (SSYS)
— Autodesk Inc. (ADSK)
— Proto Labs Inc. (PRLB)
— Ansys Inc. (ANSS)
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6 Best 3D Printing Stocks to Buy originally appeared on usnews.com
Update 5/26/22: This story was published at an earlier date and has been updated with new information.