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.
7. Altair Engineering Inc. (NASDAQ:ALTR)
Number of Hedge Fund Holders: 21
Altair Engineering Inc. (NASDAQ:ALTR) is an application software company based in Troy, Michigan. The company reported a successful second quarter, with total revenues rising to $148.8 million. Software revenues for the company came in at $135.4 million, representing a 10.6% year-over-year increase. Software revenue amounts to 91% of the company’s total revenue, a figure that underscores the importance of Altair Engineering Inc.’s (NASDAQ:ALTR) software operations.
Recently, Altair Engineering Inc. (NASDAQ:ALTR) has expanded its domination in the 3D printing market by acquiring Metrics Design Automation. The company also benefits from enhanced artificial intelligence capabilities in its Altair HyperWorks 2024 platform, making it a strong stock pick for investors today.
A total of 21 hedge funds were long Altair Engineering Inc. (NASDAQ:ALTR) in the first quarter, with a total stake value of $1.3 billion. ARK Investment Management was the largest stakeholder in the company at the end of the first quarter, holding 50,530 shares.
Conestoga Capital Advisors mentioned Altair Engineering Inc. (NASDAQ:ALTR) in its fourth-quarter 2023 investor letter:
“Altair Engineering Inc. (NASDAQ:ALTR): ALTR, a leader in design and simulation software, reported strong earnings during the quarter, beating across all metrics. Adjusted EBITDA margins jumped almost 600 basis points year-over-year, leading to significantly higher profitability. ALTR is not seeing pressure from a softer macroeconomic environment domestically or in China, a dynamic some of their peers mentioned during their earnings calls. ALTR called out particular strength in the aerospace, auto and technology verticals.”
6. FARO Technologies, Inc. (NASDAQ:FARO)
Number of Hedge Fund Holders: 24
FARO Technologies, Inc. (NASDAQ:FARO) is an information technology company based in Lake Mary, Florida. It offers support for software-driven 3D measurement, imaging, and realization solutions.
The company is a strong competitor in the 3D printing space, and it has been steadily increasing its reach in the industry through numerous acquisitions. FARO Technologies, Inc. (NASDAQ:FARO) has completed 17 acquisitions to day, with most of these being in the 3D scanning area. Analysts are quite bullish on the stock in light of its first-quarter earnings as well, with revenues coming in at $4 million, and statutory losses coming in at a mere $0.38 per share, which was well below analyst estimates.
In the first quarter, 24 hedge funds were long FARO Technologies, Inc. (NASDAQ:FARO), with a total stake value of $131.6 million.
5. DENTSPLY SIRONA Inc. (NASDAQ:XRAY)
Number of Hedge Fund Holders: 35
DENTSPLY SIRONA Inc. (NASDAQ:XRAY) is a unique stock pick in the 3D printing space since it offers 3D printing equipment for dental operations. The company has recently launched Lucitone for Primeprint, which is expected to help it continue adopting 3D printing in dental practices. Several of the company’s initiatives are also anticipated to help it grow its earnings in 2024 significantly. Some of these initiatives are workforce reduction and infrastructure optimization.
DENTSPLY SIRONA Inc. (NASDAQ:XRAY) was seen in the portfolios of 35 hedge funds in the first quarter, with a total stake value of $621.2 million. ARK Investment Management was the most prominent shareholder in the company at the end of the first quarter, holding 135,949 shares.
Artisan Partners mentioned DENTSPLY SIRONA Inc. (NASDAQ:XRAY) in its first-quarter 2024 investor letter:
“DENTSPLY SIRONA Inc. (NASDAQ:XRAY) declined 5% this quarter. Dentsply is one of the world’s suppliers of consumables and equipment to dentists in the US and internationally. The company has great market positions, and the dental industry is generally a good one. It grows in line with or above GDP and is nicely profitable for most scale suppliers. Dentsply has been undergoing a turnaround under a relatively new management team. Progress has been visible since the team took over, but distortions coming out of the pandemic have created a volatile operating environment for dental businesses. We sold a large part of our holding at higher prices in 2023 and exited the stock this quarter into Henry Schein, another company in the dental industry that we think is a better value and in which we started building a position in Q3 2023.”
4. PTC Inc. (NASDAQ:PTC)
Number of Hedge Fund Holders: 42
PTC Inc. (NASDAQ:PTC) is an application software company in Boston, Massachusetts. The company offers two product groups, namely computer-aided design and lifecycle management. The former offers software for data authoring, and the latter offers software for product data management and process orchestration.
Investors should consider buying PTC Inc. (NASDAQ:PTC) today because it is benefitting from several growth catalysts, such as the digitalization of the manufacturing world and the overall transition to cloud-based SaaS solutions, which PTC Inc. (NASDAQ:PTC) readily provides. As a result, the company’s software solutions are becoming increasingly valuable for investors and customers alike.
PTC Inc. (NASDAQ:PTC) had 42 hedge funds long its stock in the first quarter, with a total stake value of $2.6 billion.
Here’s what Madison Investments said about PTC Inc. (NASDAQ:PTC) in its first-quarter 2024 investor letter:
“PTC Inc. (NASDAQ:PTC) was one of our oldest portfolio holdings (~23 years!) and best performing stocks. We made our initial investment in PTC in 2001(in those days the company’s full name was Parametric Technology Corporation) after the dot com crash when the stock had an equity market value of approximately $1billion. We sold our final share near an equity market value of approximately $22billion. When we first initiated the investment position, we saw an attractively valued software company that provided very sticky, difficult to replace design software for engineers in the manufacturing sector. Over that 20-year span, PTC has grown both organically and through strategic M&A into one of the most vital design software engineering platforms in the world. Companies like BMW, Rockwell International, Medtronic, Hitachi, Boeing, Airbus, Volvo, Cannondale, Toyota, and GM all use PTC to design, collaborate and maintain the lifecycle of their franchise products and platforms. This investment illustrates not only the financial potential and opportunity of small cap investing but also our PMV process to identify and capitalize on strategic assets like PTC.”
3. HP Inc. (NYSE:HPQ)
Number of Hedge Fund Holders: 46
Based in Palo Alto, California, HP Inc. (NYSE:HPQ) is an information technology company. In the second quarter of 2024, the company has increased its sales by 3% year-over-year and has managed to lower its debt to $7.2 billion compared to $8.8 billion in 2023. HP Inc. (NYSE:HPQ) is also focusing heavily on artificial intelligence, which is working as a further growth catalyst.
In the 3D printing space, HP Inc. (NYSE:HPQ) has announced that it will now begin delivering a first-of-its-kind Polypropylene material for additive manufacturing, which will be more versatile, durable, and chemically resistant than other materials. The company is thus appealing to customers in the automotive, consumer, industrial, and medical sectors now more than ever before.
There were 46 hedge funds long HP Inc. (NYSE:HPQ) in the first quarter, with a total stake value of $649.2 million.
2. Autodesk, Inc. (NASDAQ:ADSK)
Number of Hedge Fund Holders: 52
Autodesk, Inc. (NASDAQ:ADSK) is an application software company based in San Francisco, California. In the first quarter, the company reported revenues of $1.42 billion, representing an increase of 12% year-over-year. The company’s adjusted EPS came in at $1.87, also representing an increase of 20.6% year-over-year.
The company is a good stock to buy in the 3D printing space considering the fact that it is focusing on investing in AI tech such as Bernini, through which Autodesk, Inc. (NASDAQ:ADSK) aims at automating 3D design tasks while also enhancing its product offerings. The company’s net income has also increased by 57% in the first quarter, which was primarily driven by its robust segment performance and high recurring revenue.
In total, 52 hedge funds were long Autodesk, Inc. (NASDAQ:ADSK) in the first quarter, with a total stake value of $1.9 billion.
Polen Capital said the following about Autodesk, Inc. (NASDAQ:ADSK) in its second-quarter 2024 investor letter:
“Autodesk, Inc. (NASDAQ:ADSK) and Accenture were also notable absolute detractors in the quarter. With Autodesk, most of the stock’s price weakness came in April. The company announced that it would delay the release of its earnings and 10-K filing as it launches an internal investigation regarding its practices on some non-GAAP financial metrics. Upon further analysis, we were encouraged to hear that they were taking this very seriously and being very comprehensive in their investigation. Ultimately, Accenture announced it was closing the investigation and that no re-statements would be required. As discussed in the following section, we chose to exit the position in favor of a more attractive investment.
We sold our small position in Autodesk to help fund our purchase of Shopify. We still think Autodesk is an advantaged business, with 95%+ recurring revenue, dominant in its end market, and nice tailwinds behind digitization in that end market. It should be a durable grower over time, perhaps with continued fits and starts, but we found the risk-reward around Shopify to be more compelling.”
1. ANSYS, Inc. (NASDAQ:ANSS)
Number of Hedge Fund Holders: 56
ANSYS, Inc. (NASDAQ:ANSS) is an information technology company based in Canonsburg, Pennsylvania. The company’s growth is propelled forward by its strong computational software which aids engineers simulate their creations to observe their behavior in the real world.
ANSYS, Inc. (NASDAQ:ANSS) entered into a strategic partnership with another 3D printing company, Materialise, late last year to deliver integrated digital solutions in the additive manufacturing industry. The partnership aims to integrate ANSYS, Inc.’s (NASDAQ:ANSS) Additive Suite into Materialise’s data and build a preparation tool by the name of Magics which will aim to provide a best-in-class workflow to manage additive manufacturing industrial projects across industries.
ANSYS, Inc. (NASDAQ:ANSS) had 56 hedge funds long its stock in the first quarter, with a total stake value of $2.4 billion.
This is what Conestoga Capital Advisors said about ANSYS, Inc. (NASDAQ:ANSS) in its first-quarter 2024 investor letter:
“ANSYS, Inc. (NASDAQ:ANSS): ANSS is the industry leader in selling computer-aided engineering (CAE) software that allows engineers to simulate how product designs will behave in real world environments before they are manufactured. Shares underperforming during the quarter due to its pending acquisition by Synopsys (SNPS) which is not all cash, rather a combination of cash and SNPS shares.”
While we acknowledge the potential of ANSYS, Inc. (NASDAQ:ANSS) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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