13 Best 3D Printing Stocks To Invest In

Published on October 31, 2023 at 3:13 am by Fahad Saleem in Hedge Funds, News

In this article, we will take a look at the 13 best 3D printing stocks to invest in. To see more such companies, go directly to 5 Best 3D Printing Stocks To Invest In.

3D printing is one of those futuristic trends that are guaranteed take off as companies around the world pour a fortune in the industry. Earlier this year, manufacturing company Hubs published a detailed report on the 3D printing market industry outlook. The firm said that the 3D printing market was expected to grow by 17% to reach $19.9 billion in 2023. Hubs said that a whopping 71% of businesses it surveyed said they used 3D printing more in 2022 than the previous year, while 83% of the respondents said 3D printing helped them save money in costs. The report also said that about 76% of businesses made more than 10 parts each in their production operations using 3D printing, which was 49% more than the production recorded in 2021. Hubs surveyed about 1,000 participates in February 2023.

Prescient & Strategic Intelligence published a detailed report on 3D printing industry outlook and its applications in January 2023. The report said that prototyping remains the biggest area of use of 3D printing. Making prototypes using 3D printing allows companies to test product design before mass production. This helps companies to reduce costs and time. The report also said aerospace and defense industry accounts for the biggest market share of the 3D printing industry, with a 22% share in 2022.

For this article we first listed down all holdings of ARK’s The 3D Printing ETF (PRNT) headed by Cathie Wood. We then gauged hedge fund sentiment for each of these stocks using Insider Monkey’s database of 910 hedge funds. We then picked 13 of these stocks with the highest number of hedge fund investors.

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Best 3D Printing Stocks To Invest In

13. ANSYS, Inc. (NASDAQ:ANSS)

Number of Hedge Fund Holders: 30

ANSYS, Inc. (NASDAQ:ANSS) sells 3D printing and additive manufacturing solutions. ANSYS, Inc. (NASDAQ:ANSS) has gained about 12% year to date through October 27. In August ANSYS, Inc. (NASDAQ:ANSS) posted second quarter results. Adjusted EPS in the period came in at $1.60 surpassing estimates by $0.08. Revenue in the period jumped 4.4% year over year to $496.6 million, beating estimates by $6.54 million.

As of the end of the second quarter of 2023, 30 hedge funds tracked by Insider Monkey had stakes in ANSYS, Inc. (NASDAQ:ANSS). The biggest stakeholder of ANSYS, Inc. (NASDAQ:ANSS) was Robert Joseph Caruso’s Select Equity Group which had a $264 million stake in the company.

12. ATI Inc. (NYSE:ATI)

Number of Hedge Fund Holders: 30

ATI Inc. (NYSE:ATI), or Allegheny Technologies, makes metals and materials, along with devices and accessories, used widely in the 3D printing industry. In September, ATI Inc. (NYSE:ATI) said it secured a contract by Bechtel Plant Machinery to support development of highly engineered part solutions in support of the U.S. Naval Nuclear Propulsion Program.

As of the end of the second quarter of 2023, 30 hedge funds tracked by Insider Monkey had stakes in ATI Inc. (NYSE:ATI). With a $98 million stake in ATI Inc. (NYSE:ATI), DE Shaw was the biggest stakeholder of the company.

Liberty Park Capital made the following comment about ATI Inc. (NYSE:ATI) in its Q1 2023 investor letter:

“We are pleased that Liberty Park Fund, LP has gotten off to a strong start in 2023. January was a particularly strong month for both of our funds, and LPF was able to use the market’s strength to install several new short positions; those positions greatly helped the portfolio in February and March as the market receded.

ATI Inc. (NYSE:ATI) and ZEUS each reported better-than-expected earnings caused by a widening spread between selling prices and commodity prices. We expect these spreads to compress and for margins at each of the companies to revert back to normal levels.”

11. Eastman Chemical Company (NYSE:EMN)

Number of Hedge Fund Holders: 33

American chemical company Eastman Chemical Company (NYSE:EMN) sells different chemicals and additive manufacturing materials used in the 3D printing industry. In 2018, for example, Eastman Chemical Company (NYSE:EMN) launched Eastman Amphora™ SP1621 3D polymer — its first-ever powder-based material for industrial 3D printing.

A total of 33 hedge funds in Insider Monkey’s database of 910 hedge funds reported owning stakes in Eastman Chemical Company (NYSE:EMN). The biggest stake in Eastman Chemical Company (NYSE:EMN) was owned by Israel Englander’s Millennium Management which had a $220 million stake in the company.

ClearBridge Value Equity Strategy made the following comment about Eastman Chemical Company (NYSE:EMN) in its Q2 2023 investor letter:

“We also added a new position in Eastman Chemical Company (NYSE:EMN), a vertically integrated chemical company, reflecting an opportunity to buy an overly depressed cyclical stock with an extremely cheap option on molecular recycling. An eventual cyclical rebound alone is enough to justify a much higher business value as demand will accelerate as destocking ends, allowing Eastman to realize material profit margin expansion as it gets ahead of cost input inflation. Additionally, Eastman is ramping up three molecular recycling plants over the next few years based on its Polyester Renewal Technology, a less energy intensive and lower cost production process. This should drive faster growth while generating compelling returns on capital.”

10. Align Technology, Inc. (NASDAQ:ALGN)

Number of Hedge Fund Holders: 35

Align Technology, Inc. (NASDAQ:ALGN) uses 3D scanning and 3D printing technologies to make orthodontic and restorative treatments. In September, Align Technology, Inc. (NASDAQ:ALGN) said it will buy Cubicure GmbH, a company that makes materials for 3D printing solutions.

A total of 35 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in Align Technology, Inc. (NASDAQ:ALGN). The biggest stakeholder of Align Technology, Inc. (NASDAQ:ALGN) was Brian Bares’s Bares Capital Management which had a $195 million stake in the company.

Polen Global SMID Company Growth Strategy made the following comment about Align Technology, Inc. (NASDAQ:ALGN) in its first quarter 2023 investor letter:

“We initiated a position in Align Technology, Inc. (NASDAQ:ALGN), a global medical device company best known for its “Invisalign” clear aligners, having created the clear aligner category in 1999. Since that time, it has been a disruptor of the traditional use of wire and bracket braces to straighten teeth and treat malocclusions. While it is leader in the clear aligner category with roughly 85-90% market share, the bigger competition is taking share from wire and brackets and on that measure, it only has 10-15% share of the overall teeth straightening market. Over time, through innovation and vertical integration, the company has evolved to be able to treat over 90% of all cases. Further, it has done a great job deepening relationships with orthodontists and general practitioner dentists over time. All in all, we believe this is a business with a durable competitive advantage, operating in a large, growing and very attractive industry, led by a proven and long-term oriented management team, with a very long runway ahead of it to grow and compound at very attractive rates.”

9. AMETEK Inc. (NYSE:AME)

Number of Hedge Fund Holders: 38

Electronic instruments and electromechanical devices company AMETEK, Inc. (NYSE:AME) sells custom 3D printing solutions, among several other products and technologies.

As of the end of the second quarter of 2023, 38 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in AMETEK, Inc. (NYSE:AME). The biggest stakeholder of AMETEK, Inc. (NYSE:AME) during this period was Israel Englander’s Millennium Management which had a $152 million stake in the company.

In an August earnings called for the second quarter, AMETEK, Inc. (NYSE:AME)’s management talked about its 2023 outlook:

“While uncertainties in the macroeconomic environment continue to warrant caution in the short term, we are confident in our ability to navigate through these challenges and deliver strong results. Building upon our strong first half results and positive outlook for the remainder of the year, we are again increasing our earnings guidance. For the full year, we expect overall sales to be up mid- to high single digits with organic sales expected to be up mid-single digits. Diluted earnings per share for the year are now expected to be in the range of $6.18 to $6.26, up 9% to 10% compared to last year’s results. This is an increase from our previous guidance range of $5.96 to $6.10 per diluted share.

For the third quarter, we anticipate overall sales to be up mid-single digits, with adjusted earnings of $1.56 to $1.58 per share, up 8% to 9% versus the prior year. In summary, AMETEK’s second quarter results were excellent. Our businesses continued to deliver excellent performance, benefiting from differentiated technology solutions that cater to diverse and growing niche markets. The implementation of our organic growth initiatives has yielded higher levels of growth, while our portfolio remains aligned with attractive mid- and long-cycle markets.”

Read the full earnings call transcript here.

Aristotle Core Equity Strategy made the following comment about AMETEK, Inc. (NYSE:AME) in its Q4 2022 investor letter:

“AMETEK, Inc. (NYSE:AME) contributed to performance in the fourth quarter following a better-than-expected third quarter earnings report and an increase in full year guidance. The company has low balance sheet leverage and management appeared confident in its ability to source acquisitions. Management believes that the company’s recession risk is lower than in previous economic cycles due to the remixing of the portfolio to less cyclical end markets.”

8. DuPont de Nemours Inc. (NYSE:DD)

Number of Hedge Fund Holders: 39

Chemicals company DuPont de Nemours, Inc. (NYSE:DD) ranks 8th in our list of the best 3D printing stocks to buy now according to hedge funds. DuPont de Nemours, Inc. (NYSE:DD) is also a key part of Cathie Wood’s ARK’s 3D printing ETF. DuPont de Nemours, Inc. (NYSE:DD) has been investing over the past few years to strengthen its 3D printing portfolio. DuPont de Nemours, Inc. (NYSE:DD) in 2019 said it will introduce new semi-crystalline materials at RAPID + TCT 2019 to boost its 3D printing portfolio.

As of the end of the second quarter of 2023, 39 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in DuPont de Nemours, Inc. (NYSE:DD). The biggest stakeholder of DuPont de Nemours, Inc. (NYSE:DD) during this period was Dan Loeb’s Third Point which had a $329 million stake in the company.

Third Point made the following comment about DuPont de Nemours, Inc. (NYSE:DD) in its Q4 2022 investor letter:

“We recently increased our investment in DuPont de Nemours, Inc. (NYSE:DD), a specialty chemical company run by legendary value creator Ed Breen, who is leading a corporate transformation. In November, DuPont divested its most cyclical and lowest margin business segment, Mobility & Materials, to Celanese for $11 billion, or 14x 2023e EV/EBITDA. Following the divestiture, the improved DuPont trades at 11x 2023e EV/EBITDA, which represents a ~30% discount to its peer group.

We believe the company is laser-focused on closing this gap. First, $5 billion of the proceeds are being deployed to repurchase nearly 15% of its outstanding shares. The next significant catalyst for the stock is a potential settlement of PFAS-related multidistrict litigation in South Carolina, which remains an overhang on the stock even though DuPont’s PFAS liability was largely ring-fenced by the 2021 settlement with Chemours and Corteva. DuPont’s strong management team is eager to demonstrate the business quality of the new portfolio during the current period of economic volatility. We expect the combined catalysts of increased share repurchases, the pending resolution of legal claims, and the new business structure to drive meaningful value for shareholders.”

7. PTC Inc. (NASDAQ:PTC)

Number of Hedge Fund Holders: 40

Computer aided design and modeling company PTC Inc. (NASDAQ:PTC) ranks 7th in our list of the best 3D printing stocks to buy now. Earlier this year, PTC Inc. (NASDAQ:PTC) revealed a fully 3D-printed jet engine which was designed using its Creo CAD software.

A total of 40 hedge funds out of the 910 funds tracked by Insider Monkey were long PTC Inc. (NASDAQ:PTC). The most significant stakeholder of PTC Inc. (NASDAQ:PTC) during this period was Stephen Mandel’s Lone Pine Capital which had a $451 million stake in the company.

6. HP Inc. (NYSE:HPQ)

Number of Hedge Fund Holders: 46

HP Inc. (NYSE:HPQ) is investing heavily in 3D printing, especially commercial 3D printers. HP’s board recently approved a 5% dividend hike. For fiscal 2024, HP Inc. (NYSE:HPQ) expects its adjusted earnings to be in the range of $3.25–$3.65 versus the consensus estimate of $3.48.

HP Inc. (NYSE:HPQ)’s management talked about the company’s printing business during Q3 earnings call and said:

“We are specifically focused on regaining profitable share and improving our performance in office through stepped-up execution. And given the competitive environment in home printing, we need to improve our cost structure to maintain long-term profitability. Turning to our Industrial business. The graphics and 3D markets continue to be impacted by macro environment and delayed ordering cycles. That said, they remain important parts of our plan to drive long-term growth and value creation, and we continue to innovate to strengthen our position. I also want to acknowledge the continued progress we are making in our workforce services and solutions business. We delivered solid growth in the quarter, both year-over-year and sequentially. And we are building a strong funnel as we spend time introducing our newly integrated portfolio of services with customers.

We are very encouraged by the opportunities to grow this business moving forward. Overall, Q3 was a solid quarter, given current market conditions. Our Future Ready plan is on track. We’re investing in innovation and making good progress against our long-term growth priorities, and we are doubling down on execution across every facet of our business. This is important as we expect the market to remain challenging in Q4. The macro situation is not improving as … [read full earnings call transcript here.]”

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