In this piece, we will take a look at the performance and developments surrounding 3D printing stocks.
A big reason Apple Inc. (NASDAQ:AAPL) is widely credited to be one of the most advanced personal computing companies in the world is the firm’s ability to blend in a device’s design with high end specifications. A key aspect of product design is manufacturing, which has slowly grown to become one of the most advanced industries in the world. Advances in manufacturing have also nearly completely re shaped the landscape of today’s technologies, with one high end manufacturing category, i.e. 3D printing or additive manufacturing, reshaping the way designers, businesses, and consumers produce and order gadgets.
3D printing’s utility allows high end jet engine manufacturers, such as General Electric Company (NYSE:GE) and RTX Corporation (NYSE:RTX) subsidiary Pratt & Whitney to fabricate complex components with high degrees of precision. At the same time, it also enables firms like the Ireland based medical device manufacturer Medtronic plc (NYSE:MDT) to create life like models of human organs such as the heart for testing, training, and other uses. For a detailed look at how GE and others are using 3D printing, you should read 10 Best 3D Printing and Additive Manufacturing Stocks To Buy.
While the allure of 3D printing to transform industries and generate revenue has always been strong, these stocks, like others that require significant capital investment, fluctuate in response to economic conditions. As proof, consider the performance of the Solactive 3D Printing Index (CHF). It is one of the earliest collections of 3D printing stocks which predates Ark Investment‘s well known The 3D Printing ETF (BATS:PRNT). Year to date, the Solactive index is down by 2.4%. However, the 3D printing stock index closed 3.9% higher on April 11th, which has proven as one of the most important stock market dates this year. The following day, markets and investor sentiment reworked their expectations for interest rate cuts later this year after evaluating fresh inflation data and earnings from big banks and saw them struggle with high costs which disappointed Wall Street estimates for net interest income. You can read more about this turmoil by clicking on 20 Most Profitable Banks in the US in 2024.
Shifting gears, while 3D printing stocks have responded negatively to investors shifting their rate cut expectations forward, individual stocks might be doing better. Some of the oldest 3D printing stocks you’re likely to find are Stratasys Ltd. (NASDAQ:SSYS) and 3D Systems Corporation (NYSE:DDD). These two have been trading on the stock market since the 1990s, and among them, Startsys’s shares have been the better performers. They are up by 466% in all time price gains, for a nice chunk of returns which peaked in 2014 when the shares touched $140. And just as is the case for the Solactive 3D Printing Index (CHF) these 3D printing stocks also jumped in 2021 after investors and media hyped up the potential offered by printers to create alternatives to traditional supply chain and manufacturing resources that were harmed by the post pandemic lockdowns.
These fluctuations are a classic representation of 3D printing stocks, which soar in popularity, see a growth in adoption, and then slowly fade away to bide their time. 2021’s 3D printing stock peak also led to this industry joining the special purpose acquisition company (SPAC) fever amongst firms eager to try their hand at a public listing. Some 3D printing stocks that went public during this time are Markforged Holding Corporation (NYSE:MKFG), Velo3D, Inc. (NYSE:VLD), and Shapeways Holdings, Inc. (NASDAQ:SHPW). Neither of these are stellar performers, and we can’t blame them given how high interest rates have gotten since their listing.
One 3D printing stock that has bucked the trend of being red in 2024 is the Boston based software firm PTC Inc. (NASDAQ:PTC). PTC is an example of the software arm of the 3D printing industry, which benefits from selling manufacturing software firms that rely on 3D printing. This enables it to directly benefit from any growth in the adoption of additive manufacturing technologies. Additionally, in case of a slowdown in 3D printing, PTC Inc. (NASDAQ:PTC) also benefits from product management and industrial software which allow it to generate recurring revenue. The shares have gained 6.7% year to date, outpacing the gains of all 3D printing stocks in this introduction and the Solactive 3D Printing Index (CHF).
The latest bit about this top performing 3D printing stock is for its first quarter earnings. The results saw PTC Inc. (NASDAQ:PTC) post $603 million in revenue and $0.95 in earnings per share. These beat analyst estimates of $576 million for revenue and $0.74 for the EPS. At its earnings call, management shared that PTC’s Creo software, used primarily in 3D printing applications, had led to an 11% annual recurring revenue (ARR) growth for its CAD business division.
So, as 3D printing stocks continue to prove to be an interesting bunch, we decided to see which stocks are finding favor with analysts. Analysts spend countless hours pouring over financial statements and business models to decide whether a firm can enhance its cash flow and shareholder value in the future. For 3D printing stocks, their take can provide important insight due to the hurdles that the industry faces with wide scale adoption and the stable potential offered by the software side. Some top 3D printing stocks in this list are Materialise NV (NASDAQ:MTLS), Stratasys Ltd. (NASDAQ:SSYS), and FARO Technologies, Inc. (NASDAQ:FARO).
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Our Methodology
To make our list of the top 3D printing stocks according to analysts, we ranked the constituents of the Solactive 3D Printing Index (CHF) and those selected in our coverage of 13 Best 3D Printing Stocks To Invest In by the average analyst share price target upside and picked out the top stocks. Moreover, for each of these stocks, we looked at how many hedge funds from our database held shares according to the last round of 13F filings. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this underlooked indicator.
What happened to 3D printing stocks?
10. AMETEK, Inc. (NYSE:AME)
Average Analyst Share Price Upside: 10%
Average Analyst Share Price Target: $187.46
AMETEK, Inc. (NYSE:AME) is a 3D printing hardware firm that sells printers and items such as coolers. The firm has beaten analyst EPS estimates in all four of its latest quarters, and it was out with a welcoming announcement for investors in May 2024. This announcement saw AMETEK, Inc. (NYSE:AME) declare a 28 cent quarterly dividend for the current quarter.
According to Insider Monkey’s data covering 933 hedge fund filings for 2023’s fourth quarter, 37 had held stakes in AMETEK, Inc. (NYSE:AME). Phill Gross And Robert Atchinson’s Adage Capital Management owned the most valuable stake which was worth $174 million.
Along with Materialise NV (NASDAQ:MTLS), Stratasys Ltd. (NASDAQ:SSYS), and FARO Technologies, Inc. (NASDAQ:FARO), AMETEK, Inc. (NYSE:AME) is a highly rated 3D printing stock according to analysts.
9. PTC Inc. (NASDAQ:PTC)
Average Analyst Share Price Upside: 13%
Average Analyst Share Price Target: $203
PTC Inc. (NASDAQ:PTC) is quite strongly rated when it comes to analyst sentiment. Data from 17 analysts shows that the average score is Strong Buy. Analyst coverage for the stock has been regular too, with multiple reiterations taking place in April and May. This month’s ratings have been varied so far. Baird, Mizuho, and Citigroup reiterated their Outperform, Buy, and Neutral ratings, respectively. Baird increased PTC Inc. (NASDAQ:PTC)’s share price target to $216 from $210, Mizuho cut it to $200 from $210, and Citi slashed it by $8 to $187.
Out of the 933 hedge fund SEC filings for Q4 2023 compiled by Insider Monkey, 47 mentioned PTC Inc. (NASDAQ:PTC). Among these hedge funds, the one with the most valuable stake was Stephen Mandel’s Lone Pine Capital. It owned $554 million worth of shares.
8. Align Technology, Inc. (NASDAQ:ALGN)
Average Analyst Share Price Upside: 21%
Average Analyst Share Price Target: $338.96
Align Technology, Inc. (NASDAQ:ALGN) is a medical devices manufacturer that functions on the consumer end of the 3D printing and additive manufacturing industry. Its shares have struggled in 2024 after having given up most of their gains in April and May. However, the recent first quarter earnings report saw Align Technology, Inc. (NASDAQ:ALGN)’s shares jump after EPS and revenue of $2.14 and $994 million exceeded $1.97 and $974 million in analyst estimates.
By December 2023 end, out of the 933 hedge funds part of Insider Monkey’s database, 50 had owned Align Technology, Inc. (NASDAQ:ALGN)’s shares. The one who reported the largest stake among these was Ken Fisher’s Millennium Management. Its stake at Q4 2023 end was worth $212 million.
7. Proto Labs, Inc. (NYSE:PRLB)
Average Analyst Share Price Upside: 29%
Average Analyst Share Price Target: $41.5
Proto Labs, Inc. (NYSE:PRLB) is a manufacturing firm that relies on using 3D printing to work with metal parts. Its shares have performed well in May 2024 after a strong quarterly showing with a ~40% annual revenue growth for a $3.21 million beat. Year to date the stock has struggled and is down 15%.
Out of the 933 hedge funds tracked by Insider Monkey at the end of last year, 19 were Proto Labs, Inc. (NYSE:PRLB)’s stakeholders. D. E. Shaw’s D E Shaw owned the most valuable stake which was worth $20.5 million.
6. Autodesk, Inc. (NASDAQ:ADSK)
Average Analyst Share Price Upside: 31%
Average Analyst Share Price Target: $287.44
Design software firm Autodesk, Inc. (NASDAQ:ADSK) is one of the more widely covered 3D printing stocks in the world. This is because its software is often indispensable to engineers and designers when they work with additive manufacturing. The shares are rated Buy on average, and the average analyst share price target is $287.44. However, Berenberg’s slicing note in May 2024 downgraded the shares to Hold from Buy and set a $294 price target. The downgrade reflected Autodesk, Inc. (NASDAQ:ADSK)’s inability to file its annual report with the SEC.
By the end of 2023’s final quarter, out of the 933 hedge funds in Insider Monkey’s database, 46 had held stakes in Autodesk, Inc. (NASDAQ:ADSK). William Von Mueffling’s Cantillon Capital Management reported the largest stake among these as it held $414 million worth of shares.
Materialise NV (NASDAQ:MTLS), Autodesk, Inc. (NASDAQ:ADSK), Stratasys Ltd. (NASDAQ:SSYS), and FARO Technologies, Inc. (NASDAQ:FARO) are some top rated analyst 3D printing stocks.
Click here to continue reading and see What happened to 3D printing stocks? Top 5 Stocks.
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Disclosure: None. What happened to 3D printing stocks? is originally published on Insider Monkey.