In this article, we will take a look at the 5 best 3D printing stocks to invest in. To see more such companies, go directly to 13 Best 3D Printing Stocks To Invest In.
5. United Parcel Service Inc. (NYSE:UPS)
Number of Hedge Fund Holders: 47
United Parcel Service, Inc. (NYSE:UPS) has invested heavily in 3D printing over the years. In 2016, Reuters had reported that United Parcel Service, Inc. (NYSE:UPS) was starting to invest in 3D printing amid competition and risks to its storage and parts shipping business. In 2020, SAP combined its supply chain software with United Parcel Service, Inc. (NYSE:UPS)’s industrial manufacturing and logistics networks to create an ‘on demand’ 3D printing service.
United Parcel Service, Inc. (NYSE:UPS) has a partnership with additive manufacturing solutions company Fast Radius, under which the company provides automated 3D printing with direct digital manufacturing at industrial-scale volume.
ClearBridge Large Cap Value Strategy made the following comment about United Parcel Service, Inc. (NYSE:UPS) in its Q3 2023 investor letter:
“A higher-for-longer rate mentality taking hold was a headwind for economically sensitive stocks. Rising wages have been one of the main drivers of inflation, and this has proved to be a sticky area, keeping the Fed’s attention and weighing on share prices. For example, United Parcel Service, Inc. (NYSE:UPS) renegotiated a wage increase for its union-backed workforce this summer, which weighed on margins that were already being constricted by slowing volumes. While the new union deal will dampen profits over the next 12 months due to the front-end-loaded nature of the new five-year contract, management gained increased flexibility to deploy automation, which we think should further enhance UPS’s strong competitive position and provide a long-term tailwind to profitability.”
4. 3M Company (NYSE:MMM)
Number of Hedge Fund Holders: 49
3M Company (NYSE:MMM) is one of the biggest players in the 3D printing industry, providing parts and solutions used in the industry. 3M Company (NYSE:MMM) recently posted Q3 results. Adjusted EPS in the period came in at $2.68 surpassing estimates by $0.33. Revenue in the quarter came in at $8.31 billion, beating estimates by $280 million.
As of the end of the second quarter of 2023, 49 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in 3M Company (NYSE:MMM). The biggest stakeholder of 3M Company (NYSE:MMM) during this period was Cliff Asness’s AQR Capital Management which had a $162 million stake in the company.
3. Autodesk, Inc. (NASDAQ:ADSK)
Number of Hedge Fund Holders: 54
Autodesk, Inc. (NASDAQ:ADSK) is one of the most notable players in the 3D printing industry because its software are widely used by 3D printing companies and developers to create new designs.
As of the end of the second quarter of 2023, 54 hedge funds had stakes in Autodesk, Inc. (NASDAQ:ADSK).
RiverPark Large Growth Fund made the following comment about Autodesk, Inc. (NASDAQ:ADSK) in its Q2 2023 investor letter:
“Autodesk, Inc. (NASDAQ:ADSK): Autodesk was our next top detractor despite quarterly results reported in late May that were in line with expectations. For 1Q, revenue grew 12%, Remaining Performance Obligation (RPO) grew 15%, and the company generated $714 million of FCF, which increased 69% year over year. Profitability for the company was strong, with a 32% non-GAAP operating margin for the quarter, and management reiterated its outlook for the year.
Autodesk has a near monopoly on software for designing, building, and managing buildings, as well as software for infrastructure and manufacturing plants, prototyping software for manufacturers of products (including autos, machinery, and consumer products) and document sharing. As a result, we believe ADSK’s business is very sticky. The company expects to grow revenue mid-teens annually over the next several years, and, as we have seen in similar SaaS businesses, as revenue scales, operating margins are expected to expand significantly from their current 32% to more than 40%, more in-line with peers. We believe that ADSK shares can grow along with its mid-teens free cash flow growth over the next several years.”
2. General Electric Company (NYSE:GE)
Number of Hedge Fund Holders: 71
General Electric Company (NYSE:GE) uses addictive manufacturing technologies to make 3D-printed jet engines, massive turbine engines, 3D-prints ultrasound transducers, among many other parts. Earlier this month General Electric Company (NYSE:GE) posted Q3 results. Adjusted EPS in the period came in at $0.82 beating estimates by $0.26. Revenue jumped 19.6% year over year to $17.3 billion, beating estimates by $1.61 billion.
A total of 71 hedge funds tracked by Insider Monkey had stakes in General Electric Company (NYSE:GE) as of the end of the June quarter.
Vulcan Value Partners made the following comment about General Electric Company (NYSE:GE) in its Q1 2023 investor letter:
“General Electric Company (NYSE:GE) was a material contributor during the quarter. With the successful spin-off of GE HealthCare in early January, the company operates in two major markets: GE Aerospace and GE Vernova. GE Aerospace powers three out of every four commercial flights. GE Vernova helps generate 30% of the world’s electricity and has a meaningful role to play in the energy transition. The company’s service activities, which are higher margin and more resilient, represent approximately 60% of revenue and 85% of its backlog. The company reported strong fourth quarter 2022 results and management’s 2023 outlook is positive.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 300
Microsoft Corporation (NASDAQ:MSFT) is now offering several new tools and software to support 3D printing. Some tools include Windows IoT Core, Microsoft 3D Tools for repairing, among others. That’s why Microsoft Corporation (NASDAQ:MSFT) is a key part of ARK’s 3D printing ETF.
ClearBridge Value Equity Strategy made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q2 2023 investor letter:
“We initiated a small position in Microsoft Corporation (NASDAQ:MSFT) during the quarter, which may seem surprising given our concerns about index concentration. However, we seized the opportunity on a compelling entry point below our business value estimate, due to an anticipated acceleration of demand for Microsoft’s Azure cloud business and incremental revenues from integration of Microsoft’s AI Copilot program into its office platform. We believe this could support double-digit growth, while simultaneously solidifying Microsoft’s competitive position as an AI winner. Even as a small position, we believe Microsoft provides a large portfolio construction benefit given low correlation to the rest of the portfolio.”
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