10 Best 3D Printing and Additive Manufacturing Stocks To Buy
In this piece, we will take a look at the ten best 3D printing and additive manufacturing stocks to buy. If you want to skip our introduction to why 3D manufacturing is one of the most important industries today, then check out 5 Best 3D Printing and Additive Manufacturing Stocks To Buy.
3D printing is one of the most disruptive technologies in the world today. It has allowed companies and enthusiasts to virtually create any product that they like out of thin air, whilst doing so otherwise would require large machines and hefty investments in fabrication equipment. This enables companies to rapidly build out parts and verify their engineering and design even if the fabrication is done only for testing purposes and mass production will take place through traditional machines.
3D printers and additive manufacturing as an industry have moved forward quite rapidly over the course of the past decade or so. They are now used to manufacture some of the most complex engineering products in the world, which can withstand significant forces. Industrial equipment and products manufacturer General Electric Company (NYSE:GE)'s Italian division Avio Aero manufactures jet engine turbine blades with 3D printing, and these end up spinning thousands of times in minute at unimaginable forces inside a jet engine.
For the ancient observer, the process of manufacturing a 3D printed jet engine blade would be nothing short of magic. It involves an electron beam welding together thin layers of metal to create a product that is insusceptible to hairline or microscopic cracks. Additionally, since the machines are capable of building robust components, they can also make other components such as sensor housings. Talking numbers, by using 3D printing to manufacture "tons" of components for the 787 aircraft, a Boeing supplier believes that the company can save as much as $3 million in costs over the long term.
While $3 million in cost savings for a jet that costs hundreds of million of dollars might seem trivial, the fact that there are other methods to fabricate complex products which are fundamentally different from existing processes shows that there is significant room for innovation on the product front and for markets at the supply end. This potential seems to be on the mind of companies as well, since a study from Ernst & Young (EY) shows that out of 900 businesses surveyed in 2016 and 2019 each, the percentage that are applying additive manufacturing technology in their business operations process grew by more than 2.5x while those that did not intend to apply dropped by 3.7x. These are strong numbers for a small time period and the data also reveals that the highest percentage of business that do use 3D manufacturing are in China and South Korea.
Another key benefit of 3D printing is the ability to produce simple products cheaply. A variety of goods, such as skateboards, goggles, and even football helmets are made by additive manufacturing. A key advantage of this is that the supply chains for these products can be easily set up domestically in the U.S. and create more jobs since traditionally such goods are imported from Asian countries where the cost of labor and other mass production inputs are lower.
However, even though the potential of 3D printing is immense, the fact still remains that printers are not widely used for mass production. Mass production is the backbone of consumerism and capitalism as it allows firms to churn out billions of products each year with ease and improve the standard of living of consumers. One firm that mass produces products with 3D printing is Sonova. It makes hearing aids through additive manufacturing, and the firm claims that the technology has allowed it to produce hundreds of thousands of customized hearing pieces in a year.
Finally, any discussion about 3D printing would be incomplete without SpaceX particularly as aerospace is one of the hottest topics in the media these days. SpaceX was one of the first companies to 3D print a rocket engine, as the firm revealed a thruster for its Dragon spacecraft built through additive manufacturing back in 2013. Another rocket company that is quite agile when it comes to blending the latest manufacturing technology in its production process is Relativity Space. The firm is aiming to compete with SpaceX in the crucial area of rocket reusability and it is designing the Terran R medium lift vehicle (equivalent to SpaceX's Falcon 9). This rocket aims to be fully reusable and manufactured by 3D printing.
As to what's happening in the printer industry right now, here's what the executives of Desktop Metal, Inc. (NYSE:DM) had to say during the firm's latest earnings conference call:
Revenue for the second quarter of 2023 was $53.3 million, a very strong 29% growth over the first quarter of 2023. As you’ll recall, we entered the year with a questionable outlook on the demand side as macro pressures with in our industry. And we certainly felt that in the first quarter.
There was a continuation of that softness into the start of the second quarter. However, quarter momentum really began to pick up, and we finished the quarter with strength. While there’s still some element of caution in the environment, we’re very encouraged by the recent customer activity that led to our second quarter results. This momentum gives us confidence in the early signs of a recovery and also validates feedback we’ve been receiving from customers that we would see an uptick in orders as we progress through 2023. In combination with this improved customer demand profile in a variety of near-term growth opportunities, we feel very good about the second half of 2023, and we’re reaffirming our 2023 revenue guidance. Meanwhile, the DM team has been laser-focused on something we have full control of, reducing our cost structure.
Today we'll look at some top 3D printing and additive manufacturing stocks and the top picks in this piece are Apollo Global Management, Inc. (NYSE:APO), General Electric Company (NYSE:GE), and Autodesk, Inc. (NASDAQ:ADSK).
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Our Methodology
To compile our list of the top 3D printing and additive manufacturing stocks, we used our previous coverage and Ark Invest's 3D Printing ETF and ranked the top 30 companies that are traded on U.S. exchanges through the number of hedge funds that had bought their shares in Q2 2023. Out of these, the stocks with the highest hedge fund investors w ere selected as the top 3D printing and additive manufacturing stocks. Some firms, such as Microsoft Corporation (NASDAQ:MSFT), whose core business process does not depend on 3D printing were eliminated.
Best 3D Printing and Additive Manufacturing Stocks To Buy
10. Lincoln Electric Holdings, Inc. (NASDAQ:LECO)
Q2 2023 Hedge Fund Holdings: 25
Lincoln Electric Holdings, Inc. (NASDAQ:LECO) is an American industrial products company that was set up in 1895 and claims to have the largest 3D metal printing installed capacity in the U.S. The firm is currently targeting the space for electric vehicle chargers as it received a new order on this front in September.
By the end of this year's second quarter, 25 out of the 910 hedge funds that were part of Insider Monkey's database had held a stake in Lincoln Electric Holdings, Inc. (NASDAQ:LECO). Out of these, the firm's largest shareholder is Ken Fisher's Fisher Asset Management since it owns 609,995 shares that are worth $121 million.
It joins General Electric Company (NYSE:GE), Apollo Global Management, Inc. (NYSE:APO), and Autodesk, Inc. (NASDAQ:ADSK) in our list of the best 3D printing and additive manufacturing stocks.
9. Trimble Inc. (NASDAQ:TRMB)
Q2 2023 Hedge Fund Holdings: 29
Trimble Inc. (NASDAQ:TRMB) provides 3D printing design and software products for the infrastructure industry. The firm's second quarter earnings results saw it grow its recurring revenue by 14% and the stock is up by a modest 1.46% year to date.
As of June 2023, 29 out of the 910 hedge funds surveyed by Insider Monkey had bought the firm's shares. Trimble Inc. (NASDAQ:TRMB)'s biggest hedge fund investor is Ian Simm's Impax Asset Management through a stake worth $560 million.
8. ANSYS, Inc. (NASDAQ:ANSS)
Q2 2023 Hedge Fund Holdings: 30
ANSYS, Inc. (NASDAQ:ANSS) is an American software company whose software allows customers to design their products for 3D manufacturing. The firm is making quite a splash on the bicycle manufacturing front as its software has allowed manufacturers to make a full bicycle frame.
After digging through 910 hedge funds for their second quarter of 2023 investments, Insider Monkey discovered that 30 were ANSYS, Inc. (NASDAQ:ANSS)'s shareholders. Out of these, the firm's biggest investor is Nicolai Tangen's Ako Capital since it owns $274 million worth of shares.
7. DENTSPLY SIRONA Inc. (NASDAQ:XRAY)
Q2 2023 Hedge Fund Holdings: 33
DENTSPLY SIRONA Inc. (NASDAQ:XRAY) provides 3D printers for dentists. The firm has beaten analyst EPS estimates in three of its four latest quarters, and the stock is rated Buy on average.
Insider Monkey's second quarter of 2023 survey covering 910 hedge funds revealed that 33 had held a stake in the company. DENTSPLY SIRONA Inc. (NASDAQ:XRAY)'s largest hedge fund shareholder is Jean-Marie Eveillard's First Eagle Investment Management due to its $389 million investment.
6. Align Technology, Inc. (NASDAQ:ALGN)
Q2 2023 Hedge Fund Holdings: 35
Align Technology, Inc. (NASDAQ:ALGN) manufactures 3D scanners that inform dentists and orthodontists about the shape and size of their patients' mouths and other body parts. The firm expanded its presence in the sector in September after it acquired the European firm Cubicure for the latter's 3D printing capabilities.
As of Q2 2023 end, 35 out of the 910 hedge funds part of Insider Monkey's database were Align Technology, Inc. (NASDAQ:ALGN)'s investors. Brian Bares' Bares Capital Management is the biggest stakeholder among these through its $194 million investment.
Apollo Global Management, Inc. (NYSE:APO), Align Technology, Inc. (NASDAQ:ALGN), General Electric Company (NYSE:GE), and Autodesk, Inc. (NASDAQ:ADSK) are some top additive manufacturing and 3D printing stocks being bought by hedge funds.
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Disclosure: None. 10 Best 3D Printing and Additive Manufacturing Stocks to Buy is originally published on Insider Monkey.