In this article, we will be taking a look at the 10 best 3D printing and additive manufacturing stocks to buy.
The additive manufacturing industry is among the most revolutionary areas in the general manufacturing and industrial sectors. These days, 3D printing has become widely used in various fields, such as healthcare equipment manufacturing, metal fabrication, housing construction, and even dental operations. Considering the widespread use of 3D printing technology in various fields across the globe, the 3D printing and additive manufacturing industry has come to be considered as a high-growth area in manufacturing, with many investors keeping a close eye on 3D printing stocks and adding them to their portfolios. For instance, Cathie Wood, a reputable growth investor, operates a dedicated Exchange-Traded Fund (ETF) that focuses solely on manufacturing technology and 3D printing stocks.
Growing Interest and Engagement in Additive Manufacturing
The impact and growth potential of the additive manufacturing industry is being felt not only in the markets, but on a federal government level as well. In 2022, the Biden Administration launched the Additive Manufacturing Forward initiative to promote the use of additive manufacturing and 3D printing in the US. The initiative was propelled forward by the profitable and attractive uses of 3D printing. For instance, the use of additively-manufactured fuel nozzles for commercial airplane engines by General Electric was cited by the White House as being the reason why its fuel nozzles achieved 30% cost savings while also being 25% lighter and five times more durable than regular fuel nozzles.
It’s not just the government that is taking an interest in 3D printing companies and technologies. Many tech companies have also been launching products in the 3D printing and additive manufacturing space to establish their presence in this area. Microsoft developed and launched a 3D Builder application, and also has its own 3D printers in the market. Autodesk is known for its Autodesk Fusion, a critical tool for preparing 3D models for printing. Finally, HP is known for its Multi Jet Fusion 3D Printing technology, among other products in this space.
Some may feel that the additive manufacturing industry is lagging behind other areas in the market. However, a closer look at the performance of individual stocks in this industry highlights the fact that many of them are fiscally performing well, and can be considered as good investments today.
Considering the high-growth potential of 3D printing stocks in today’s market, particularly in light of the growing use of additive manufacturing in various fields, we have compiled a list of the best 3D printing and additive manufacturing stocks to buy now. You can also take a look at the best 3D printing companies in the US and what happened to 3D printing stocks?.
Pixabay/Public Domain
Our Methodology
We selected the top holdings of Cathie Wood’s 3D Printing ETF and ranked them in ascending order of the number of hedge funds holding stakes in them. For this, we used Insider Monkey’s hedge fund data for the first quarter of 2024.
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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
Best 3D Printing and Additive Manufacturing Stocks To Buy
10. Nano Dimension Ltd. (NASDAQ:NNDM)
Number of Hedge Fund Holders: 10
Nano Dimension Ltd. (NASDAQ:NNDM) is a technology hardware, storage, and peripherals company based in Ness Ziona, Israel. The company is currently in the process of acquiring another 3D printing player, Desktop Metal.
The preliminary second-quarter report for Nano Dimension Ltd. (NASDAQ:NNDM) shows sequential growth for the company. Unaudited revenue of $14.8 million was reported for the quarter, and the figure actually came in at slightly above the $14.74 million mark posted in the second quarter of 2023, showing a sequential increase of 11% over the past year. Investors should consider buying this stock considering its growth and ability to acquire reputable competitors at a good bargain for itself. The Desktop Metal acquisition is happening with Nano Dimension Ltd. (NASDAQ:NNDM) poised to pay as little as $4.07 per share, or $135 million, provided that the company’s closing costs are higher than anticipated, or that the deal goes into 2025.
There were 10 hedge funds long Nano Dimension Ltd. (NASDAQ:NNDM) in the first quarter, with a total stake value of $77.5 million.
9. Stratasys, Ltd. (NASDAQ:SSYS)
Number of Hedge Fund Holders: 14
Stratasys, Ltd. (NASDAQ:SSYS) is a 3D printing company based in Eden Prairie, Minnesota. The company is among the leaders in the 3D printing industry. For the first quarter of 2024, Stratasys, Ltd. (NASDAQ:SSYS) announced a flat year-over-year revenue of $144.1 million, alongside a record high in recurring consumables revenue.
Investors interested in the 3D printing space should consider picking up Stratasys, Ltd. (NASDAQ:SSYS), considering its financial stability, as evidenced by its first-quarter earnings report and the fact that it has a particularly strong pipeline for its F3300 system. The company has also reiterated its 2024 financial outlook, which projects a revenue of up to $645 million.
We saw 14 hedge funds long Stratasys, Ltd. (NASDAQ:SSYS) in the first quarter, with a total stake value of $81.1 million. ARK Investment Management was the largest stakeholder in the company at the end of the first quarter, holding 642,632 shares.
8. Proto Labs, Inc. (NYSE:PRLB)
Number of Hedge Fund Holders: 18
Based in Maple Plain, Minnesota, Proto Labs, Inc. (NYSE:PRLB) is a digital manufacturer of custom parts. It offers 3D printing services and serves developers and engineers who use 3D computer-aided design software. As per the company’s earnings report for the second quarter, its revenue for the first half of 2024 has grown by 2% year-over-year, with non-GAAP EPS growing by 25%.
Proto Labs, Inc. (NYSE:PRLB) is a good 3D printing stock to consider buying because of its focus on increasing the number of customers it has and on driving higher revenue per customer through larger orders. Through this strategy, the company is ensuring that it retains customer loyalty and grows its revenues every quarter in the interest of maintaining financial stability.
Proto Labs, Inc. (NYSE:PRLB) was spotted in the 13F holdings of 18 hedge funds in the first quarter, with a total stake value of $54.2 million.