We recently compiled a list of the 10 Best 3D Printing and Additive Manufacturing Stocks To Buy. In this article, we are going to take a look at where DENTSPLY SIRONA Inc. (NASDAQ:XRAY) stands against the other 3D printing and additive manufacturing stocks.
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?.
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).
A doctor adjusting dental equipment in a modern dental clinic.
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.”
Overall XRAY ranks 5th on our list of the best 3D printing and additive stocks to buy. You can visit 10 Best 3D Printing and Additive Manufacturing Stocks To Buy to see the other 3D printing and additive stocks that are on hedge funds’ radar. While we acknowledge the potential of XRAY as an investment, 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 XRAY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.