10 Worst 3D Printing and Additive Manufacturing Stocks To Buy

1. Xometry (NASDAQ:XMTR)  

Short % of Float: 14.86%  

Number of Hedge Fund Investors in Q2 2024: 9  

Xometry (NASDAQ:XMTR) is an on-demand manufacturing marketplace that connects customers with suppliers for custom manufacturing services, including 3D printing, CNC machining, and injection moulding. The company’s platform offers rapid prototyping and production across multiple industries, such as aerospace, automotive, and healthcare. Xometry (NASDAQ:XMTR) uses advanced technologies to provide cost-effective and quick-turnaround solutions for businesses of all sizes.

In Q2, Xometry’s (NASDAQ:XMTR) revenue increased 19% year-over-year (YoY) to $133 million. This growth was driven by the company’s international segment, which grew 31% YoY. The company’s Q2 2024 marketplace gross margin was 33.5%, which is impressive considering the competitive nature of the on-demand manufacturing industry. Moreover, management reaffirmed guidance of 20% revenue growth and exiting 2024 with a marketplace gross margin of approximately 35%.

The company’s growth in the international segment demonstrates its potential for growth outside the competitive US market. With fewer direct competitors in global markets, Xometry (NASDAQ:XMTR) can increase its margins and establish itself as a leading player in the on-demand manufacturing industry. The company’s expansion plans outside the US will increase operating expenses in the short term and help achieve a positive EBITDA for the company.

The company is also trying to scale its supplier network and increase its marketplace revenue which will lead to higher gross margins and improved profitability. A higher gross margin will contribute to improved profitability and increase Xometry’s competitiveness in the market.

While we acknowledge the potential of Xometry (NASDAQ:XMTR) 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 XMTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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