We recently published a list of 7 Best Nanotech Penny Stocks to Invest In. In this article, we are going to take a look at where 3D Systems Corp. (NYSE:DDD) stands against other best nanotech penny stocks to invest in.
Nanotech involves working with tiny particles which are about the size of molecules. This field is being used to improve products in many different industries, like electronics, medicine, and energy. By manipulating matter at this tiny scale, materials and devices with special properties can be made. The global nanotech market was valued at $3.69 billion in 2022 and is projected to grow at a 33.1% CAGR from 2023 to 2030, as reported by Grand View Research. This is driven by the increased use in medical diagnostics and imaging, technological advancements, substantial R&D funding, and the creation of advanced materials for healthcare, electronics, aerospace, textiles, transportation, manufacturing, and agriculture.
In 2022, nanodevices dominated the nanotech market, accounting for over 58% of global revenue. This was due to their potential in healthcare (targeted drug delivery, imaging, diagnostics, regenerative medicine) and electronics (smaller transistors, memory devices, sensors). Nanosensors, which are crucial for nanoscale detection and measurement across many industries, are projected to grow. Healthcare and pharmaceuticals led applications in 2022, with over 26% market share. This was driven by the increased use of nanotech in areas like surgical nano-robots, nano-diagnostics, and targeted drug delivery, as well as rising chronic disease prevalence and surgical procedures. The automobile segment is also expected to grow due to nanotech’s improvements in materials, energy efficiency, safety, and functionality.
While the nanotech industry as a whole holds promise, it is still in its early innings and many companies are in the small-cap territory.
Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the top nanotech stocks under $5. We then selected the 7 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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 computer programmer typing code in front of a 3D printed object, emphasizing new ways of product development.
3D Systems Corp. (NYSE:DDD)
Number of Hedge Fund Holders: 21
Share Price as of February 11: $4.43
3D Systems Corp. (NYSE:DDD) is a nanotech company that offers 3D printing and digital manufacturing solutions globally. It provides 3D printing technologies, which include stereolithography, selective laser sintering, and direct metal printing, along with a variety of print materials and digital design tools. It benefits from advancements in micro and nanoscale manufacturing methods within the 3D printing industry.
Its core business is additive manufacturing, which includes both metal and polymer 3D printing. In Q3 2024, the company’s revenue was flat compared to the previous quarter. This is because customers were spending less on new 3D printing systems due to economic uncertainty. However, sales of consumables (materials used in the printers) grew by about 10% year-over-year. This shows that existing customers used their 3D printers more. The company’s industrial application group, which helps customers develop new uses for 3D printing, also saw revenue surge by 26% year-to-date in Q3.
3D Systems Corp. (NYSE:DDD) made some technology advancements. These include improvements in printing high-purity copper (important for cooling semiconductors) and a faster photopolymer 3D printing platform called the PSLA 270. It also announced a deal with Sauber Motorsports (an F1 racing team), who added 10 new 3D Systems printers to their facility.
In the last days of January, the company’s stock surged 24% after announcing a partnership with Daimler Buses and Wibu-Systems. Their combined solution lets Daimler’s partners and customers 3D-print spare parts (like pins, covers, and inserts) locally for underhood and cabin applications, which reduces part acquisition time by up to 75%. This eliminates multi-week waits for parts. Daimler Buses will license the solution.
Overall, DDD ranks 1st on our list of best nanotech penny stocks to invest in. While we acknowledge the growth potential of DDD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DDD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.