3D printing stocks 2020 performance
Why are 3D printing stocks so successful?
When we look at 3D printing at the scale of the desktop FDM printers, it’shard to imagine how they can be used to build multi-million dollarcorporations. However, 3D printing technology is bigger and farther-reachingthan we can imagine.Right now, some of the world’s largest companies have turned to 3D printingfor rapid prototyping and manufacturing solutions. 3D printing has thedistinct advantages of being able to create highly-detailed parts at muchlower costs and at higher precision compared to traditional manufacturingmethods. Huge companies that operate across several different industries suchas Nike, Audi, and Airbus, have been increasingly dependent on 3D printingtechnology as an essential step in their manufacturing process.Despite the seemingly huge potential of 3D printing, the stocks of 3D printingcompanies are still way below the highs that they experienced back in 2014.This was a period of intense hype for the 3D printing industry, which provedto a be a little too extreme and unrealistic. However, this only means thatthese stocks can be bought at discounted prices now.According to the Boston Consulting Group, the 3D printing industry couldexplode to a $15 billion market value by 2020. Some analysts have even gone asfar as saying that buying the right stocks on 3D printing companies now isakin to buying stocks of Microsoft or Apple back in 2002. Determining whetherthese projects are realistic or not will require a much deeper level ofanalysis. Right now, we’re just going to come up with a shortlist of the 3Dprinting stocks with the highest potential.
1. 3D Systems (NYSE: DDD)
Current Market Value| 11.32 —|— Forward P/E| 36.52 1-Year Return| -6.72% One of the oldest 3D printing companies, 3D Systems has the advantage ofexperience and a long history of reliability. Being an old company, they arealso holders of some of the most crucial pieces of intellectual property andcontinue to innovate compelling new technologies. They have run intomanagement issues in the past, but there’s no reason to believe that theywon’t remain a strong presence in the market moving forward. With clientsacross several industries including transportation, healthcare, manufacturing,design and engineering, 3D Systems seems to be one of the most robustcompanies that you can rely on to endure the ongoing downturn of theindustry’s stock price.
2. Proto Labs (NYSE: PRLB)
Current Market Value| 107.25 —|— Forward P/E| 28.52 1-Year Return| -15.96% The Minnesota-based Proto Labs is a relatively young company that has onlygone public since 2012. The company is not a pure play in the 3D printingindustry as it relies on three additive technologies: stereolithography,selective laser sintering, and direct metal laser sintering. The more diverseofferings of Proto Labs make it a safer bet, in case 3D printing does notprosper at the rate that is forecasted.A huge competitive advantage of Proto Labs is their turnaround time. Thecompany bills itself as the fastest digital manufacturer of prototypesworldwide and this reputation is enough for them to gain clientele from allover the United States, Europe, and Japan. With the expansion of itsmanufacturing facilities last year, Proto Labs has perhaps one of the highestpotential for growth in the rapid prototyping industry.
3. Stratasys (NASDAQ: SSYS)
Current Market Value| 23.95 —|— Forward P/E| 33.73 1-Year Return| 9.74% Stratasys has been in the 3D printing game since 1988 and has one of thelargest footprints globally. With more than 18,000 clients the world overincluding the biggest name names in automobile and aircraft manufacturing,Stratasys has to be one of the most conservative plays in the 3D printingindustry. They have also established a firm foothold on the technology sincethey own a 25% share in industrial 3D printing and have more than 600 grantedor pending manufacturing patents.The subsidiaries under Stratasys are some of the most recognized names in the3D printing industry: MakerBot, RedEye on Demand, Solid Concepts, and GrabCAD.2019 seems to be a breakout year for Stratasys, as their stock price has justrecently reached a 52-week high of 28.67.
4. Materialise (NASDAQ: MTLS)
Current Market Value| 16.28 —|— Forward P/E| 70.78 1-Year Return| 20.84% Materialise is a Belgian-based company that specializes in developing 3Dprinting software and on-demand 3D printing services. Unlike other bigplayers, Materialise does not manufacture their own 3D printers. Instead, theyfocus on software and services mainly for clients in the healthcare industry.They have a sizable technology base with more than 95 approved patents and 165more that are pending.Materialise has made a couple of big moves in the past few years. In 2017,they were able to secure FDA clearance for their 3D printed radius and ulnaosteotomy guides. They have also worked together with HP to produce the HP JetFusion 3D 4200 technology and to create customized 3D printed shoe insoles.If there’s one thing that’s working against Materialise, it’s the fact theyare currently over-valued. With a very high P/E ratio, buying Materialisestocks right now is something we can only recommend to investors with highrisk appetite.
5. Nano Dimension (NASDAQ: NNDM)
Current Market Value| 0.7700 —|— Forward P/E| -2.85 1-Year Return| -64.01% Nano Dimensions is far from the level of popularity and market capital as theprevious entries in the list but is worth looking at for the meantime. Thiscompany has mainly focused on 3D printings of electronics and nanotechnology-based ink products. The DragonFly 2020 3D Printer, their flagship product, canprint high-resolution circuit boards in just a few hours.In 2018, the company established the Nano Dimensions HK to expand their reachto the Asia Pacific market. Together with their local partner, Shandong GuohuiInvestment, the company is hoping for enhanced market growth through jointscientific work.The stock has performed poorly for most of the past year, massively droppingin value from a high of 2.84. Depending on the results of their expansion,this stock could be due to rebound soon. Even if now is not the time to buyinto Nano Dimensions, this is a stock you should be keeping on your watchlist.
The original 3D printer company, and industry legend of over 30 years, 3Dprinting would likely not be where it is now without 3D Systems.Three decades after releasing the first ever 3D printer — the SLA-1, utilizingstereolithography technologies — 3D Systems are still a leading name in theindustry. They’ve expanded into Direct Metal Laser Sintering, Selective LaserSintering, and more as the company continues to innovate and grow.3D Systems’ 3D printer range.
***We cannot find any new information on Robo 3D and current stock prices.This current data is from April 2020.Robo 3D are another fast-growing, US-based desktop 3D printer brand, andcurrently sell a range of low cost printers, including their C2, R2 and E3printers.Recently, Robo 3D has acquired education startup MyStemKits, and now sell avariety of education kits featuring their Robo E3 3D printer, along withonline training guides, filament and everything else necessary to teach aclass full of children about additive manufacturing. We interviewed Robo 3Dabout their commitment to 3D printers in schools, which you can view here.The Robo R2, one of Robo 3D’s most successful printers.
Conformis — Medical 3D Printing Stock
* Stock exchange: NASDAQ * 3D printing stock market cap: $170.85m * 3D printing share price: $0.97 * Area of 3D printing: 3D printed knee replacementsConformis is a very interesting company, pioneering 3D printed kneereplacements. They are made using CT scans which are then 3D printed exactlyto the patient’s specifications, reducing discomfort and movementdifficulties.
3D printing stocks’ 2020 performance
To be included on the list, companies had to make products used for 3Dprinting or provide 3D printing services, and the size of their 3D printingbusiness had to be fairly significant relative to their entire business.Moreover, their stocks had to have a market cap of at least $300 million(meaning they had to be at least small-cap stocks) and be publicly traded on aU.S. exchange since at least the start of 2020.Company or ETF|Market Cap|Profitable (TTM)?|Wall Street’s Projected 5-Year Annualized EPS Growth|2020 Return (Through Dec. 24)|5-Year Return —|—|—|—|—|— Materialise (NASDAQ:MTLS) | $3.1 billion | No |63%| 208% | 669% Proto Labs (NYSE:PRLB) | $4.6 billion | Yes | 25% | 69.9% | 163% The 3D Printing ETF (NYSEMKT:PRNT) |$32.5 million net asset value| — | — | 43.4% |N/A 3D Systems (NYSE:DDD) | $1.4 billion | No | 10% | 32% | 10% Stratasys (NASDAQ:SSYS) | $1.2 billion | No | 36% | 6.9% | (19.3%) S&P 500| — | — | — | 16.7% | 98.5% Data sources: YCharts and Yahoo! Finance. ETF = exchange-traded fund. TTM =trailing 12 months. Returns that have beaten the S&P 500 are boldfaced. Dataas of Dec. 24, 2020.One note before we move on to our top three 2020 performers: Proto Labs is theonly non-pure-play in the chart.
2. Proto Labs
Proto Labs, based in Minnesota, is a technology-enabled, quick-turn contractmanufacturer of plastic and metal prototypes and short-production-run parts.It offers clients both traditional manufacturing and 3D printing services, andoperates in the United States, Europe, and Japan.The company’s 3D printing services business competes against 3D Systems andStratasys, along with other smaller players. But Proto Labs is also a customerof both 3D Systems and Stratasys, as it has many manufacturers’ 3D printers inits factories.In the third quarter of 2020, Proto Labs’ 3D printing revenue accounted for15.1% of its total revenue. While this is a relatively small percentage, thisbusiness has been growing faster than the company’s combined traditionalmanufacturing services.
3. The 3D Printing ETF
The 3D Printing ETF, which began trading in July 2016, is the only exchange-traded fund focused on this space. It’s not an actively managed fund, butrather tracks an index.It had 51 stock holdings as of Dec. 23. Many of the companies are publiclytraded in the U.S., though some are only traded on foreign stock exchanges.The top 10 holdings had a combined portfolio weight of about 52%, making itmoderately concentrated. The top six holdings as of Dec. 23 were 3D Systems(7.3% weight), SLM Solutions (6.5%), Stratasys (5.5%), Proto Labs (5.2%), HPInc. (5%), and Materialise (4.9%).3D Systems and Stratasys sell products for 3D printing, including printers,software, and materials, and also provide on-demand 3D printing services. SLMSolutions, which is based in Germany and listed on the Frankfurt stockexchange, specializes in making metals 3D printers. HP entered the 3D printermarket in 2016.Many of the ETF’s smaller holdings are companies that use 3D printing in theiroperations, rather than supply products for 3D printing. An example is AlignTechnology, the fund’s 18th largest holding, accounting for about 1.6% of theportfolio value. Align uses 3D printing to make clear-plastic dentalretainers.