Top 5 Best 3D Printing Stocks to Watch
Let's enter the world of 3D printing stocks, where innovation meets investment potential.
Over the last decade, 3D printing technology has proven to be a transformative force across various verticals.
As this cutting-edge technology continues to evolve and disrupt traditional manufacturing methods, it has piqued the interest of investors seeking opportunities in this trending vertical.
In this article, we will explore the various factors of 3D printing stocks, their growth prospects, advantages and disadvantages, and the subjective top 5 best 3D printing stocks to watch (based on the opinion of the author).
Whether you are an experienced investor or simply curious about the potential of 3D printing stocks, we will look further into both innovation and investment options.
Sounds interesting? Let’s begin!
Table of Contents
Top 5 Best 3D Printing Stocks: Introduction
The 3D printing industry, which is also referred to as additive manufacturing, has not only grown extensively in popularity in recent years but has also seen its fair share of technological advancements.
Unfathomable a decade or so ago, 3D printing has enabled many to transform their ideas into reality, not only more efficiently but more cost-effectively.
Naturally and equally, this popularity growth does not come without its challenges, risks and roadblocks. Development and competition challenges are to name a few, more of which we will cover later on in this article.
Outside the world of connoisseurs and prototypes, 3D printing has firmly established itself as an innovative landscape to facilitate evolution across various sectors worldwide.
Given such, it comes to no surprise that traders and investors, alike, are intrigued by the potential of 3D printing stocks and how 3D printing companies could possibly be a good addition to a given investment portfolio.
Let’s first take a look at the advantages and disadvantages that come with trading or investing in 3D printing stocks, before we cover the top 5 best 3D printing stocks to watch.
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Advantages and Disadvantages of 3D Printing Stocks
Aside from managing your risk tolerance, the below factors could be considered beforehand.
Advantages of 3D Printing Stocks
- Innovation Potential: One of the primary advantages of investing in 3D printing stocks is the technology's innovation potential. As 3D printing techniques continue to advance, they enable companies to create complex and customized products more efficiently and hence cost-effectively. Investors can benefit from the growth of this transformative technology across industries such as healthcare, aerospace, automotive, and consumer goods, to name a few.
- Diversification: 3D printing stocks can provide diversification to a given portfolio. They often do not move in lockstep with broader market trends, offering a level of independence from traditional asset classes. This diversification can be particularly attractive during economic downturns when 3D printing companies may continue to innovate and thrive.
- Long-Term Growth: Many analysts believe that 3D printing is still in its early stages of development. Investing in 3D printing stocks allows investors to potentially capitalize on the long-term growth prospects of the industry. As the technology becomes more mainstream, companies that have established themselves as leaders in 3D printing could see substantial returns.
Disadvantages of Investing or Trading 3D Printing Stocks
- Volatility: The 3D printing sector is known for its high volatility. Stock prices of 3D printing companies can experience significant fluctuations due to factors such as changes in market sentiment, technological advancements, and competition. This volatility can make it challenging for traders to predict price movements accurately.
- Market Uncertainty: The 3D printing industry is still evolving, and it faces uncertainties regarding regulatory approvals, intellectual property disputes, and the pace of adoption across different sectors. These uncertainties can introduce additional risks for investors, as the success of 3D printing companies is closely tied to market dynamics.
- Competition: The 3D printing sector is highly competitive, with numerous companies vying for market share. As a result, some 3D printing stocks may face intense competition, which can impact their profitability and growth prospects. Investors must carefully assess a company's competitive position within the industry before committing to an investment.
Overall, investing or trading in 3D printing stocks offers opportunities for innovation-driven growth and portfolio diversification. However, it comes with the challenges of volatility, market uncertainties, and fierce competition.
Individuals should conduct thorough research and consider their risk tolerance before entering this evolving market.
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Top 5 Best 3D Printing Stocks to Watch
While such lists are always subjective, below we summarise some of the top best 3D printing stocks to watch as of this time of writing.
Not all stocks will be suitable for all traders and investors; please make sure to follow your risk management strategy in order to manage losses most effectively.
Specializing in developing and marketing engineering simulation software and services globally, ANSYS Inc remains currently to be a leader in the 3D printing sector.
- Year-over-Year (YoY) from 2019-2022, the total revenue of ANSYS Inc. has grown steadily, showing signs of stability and gradual growth for the company.
- While the long-term gradual growth is positive, in September 2023, the ANSS stock saw a heavy dip in price and has yet to recover entirely.
3D Systems engineers, manufactures and sells 3D printers, 3D scanners as well as offer 3D printing services directly. They are based out of South Carolina, USA.
- With a 52-week range of $4.33-12.67 (September 2023), this shows us high volatility; this could be beneficial to short-term traders who have a well-executed strategy and risk management.
- The company currently does not offer dividends, which may be unattractive to long-term investors.
An American-Israeli company, Stratasys Ltd manufactures 3D printing software, 3D printers and polymer materials.
- At the current price of around $12 per share (September 2023), the price point for this 3D stock is generally affordable for most investor budgets.
- From 2019-2022, the YoY total revenue has been somewhat steady but also somewhat volatile, making the stock potentially riskier than others with a more stable YoY revenue.
FARO manufactures mobile 3D measurement technology (among other products) which are crucial to industrial production. The most notable USP of the company is the fact that they can detect production errors earlier and more efficiently in the production process.
- MarketBeat analysts project a $22.33 price target, with the current price around $15. If the projection is correct, that would prove positive for investors in the short term.
- With a 52-week range (September 2023) of $10.30-36.74, this shows it’s a highly volatile stock which is likely unsuitable for most investors; that said, for those who specialise in short-term trading, it could be an attractive option.
Proto Labs provides rapid digital manufacturing, from prototype to production, such as 3D printing, injection molding, CNC machining, sheet metal, among others. Proto Labs works with the medical sector, automotive, consumer goods, among other verticals.
- From Q4 2022 – Q2 2023, Proto Labs has beat EPS every quarter, hinting at a potentially positive future for the rest of 2023, given no upcoming roadblocks.
- Proto Labs does not offer dividends as of yet, which may deter long-term investors.
How to Trade or Invest in 3D Printing Stocks at Admirals
Now that you have a deeper understanding of 3D printing stocks, how can one invest in or trade 3D printing stocks?
At Admirals, it is possible to trade stock CFDs (Contracts for Difference) in both price directions (Long or Short) via the popular MetaTrader 5 platform, more specifically, Trade.MT5.
In addition to trading CFDs, you can also invest directly in the company shares via the Invest.MT5 feature, also a part of the MetaTrader 5 platform.
We offer a trading demo account using virtual funds so those new to investing can practice trading without risking their real capital. Once comfortable, it is easy to then upgrade to a free live account.
For those comfortable with trading and investing, you can register a live account directly in order to start trading or investing.
Please note, CFDs are highly risky derivative contracts. It’s crucial to have a well-rounded risk management strategy in place. This is equally true with any form of trading and investing.
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Top 5 Best 3D Printing Stocks: Conclusion
Do you feel more educated on the topic of the 3D printing vertical, its potential risks and rewards, along with some of the leading 3D printing companies worldwide?
While naturally, any new or up-and-coming trending vertical brings excitement, it is crucial to always consider that new, emerging markets also come with sizeable risk.
Given the progress over the last decade in regard to 3D printing technology, it comes to no surprise that there is a lot of investor interest in the sector.
Is it the right area for you to invest in? Only you can answer such a question.
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Is 3D printing a good stock buy?
Whether or not 3D printing is a good stock buy is always subjective, however it could likely be possible that the 3D printing stock vertical see much growth over the next decade - It is projected (Grand View Research) that the Compound Annual Growth Rate (CAGR) will grow 23% up until 2030.
Who is leading the 3D printing industry?
The companies potentially leading the 3D printing industry could be:
- ANSYS Inc
- 3D Systems Corp
- FARO Technologies Inc
Other Article of Interest:
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