Every forward-thinking investor is considering 3D printing stocks. The growing use of the technology in industries such as aerospace, automotive, healthcare and consumer items led to a $22 billion industry in 2023, estimated to expand 24% to $150 billion by 2032 from $28 billion in 2024.
These positive predictions come from laws like Additive Manufacturing Forward (AM Forward) from the Biden administration and the use of 3D printing by local governments for a circular economy.
As expected, most company leaders in the 3D printing sector have high expectations for 2024 — 62% see excellent external business circumstances and 68% favorable internal conditions.
CEOs are pleased with the industry’s status, and new rules are increasing 3D printer sales, but post-COVID-19 3D printing stocks are down. The crisis raised demand for 3D printers, but inflation and borrowing rates at 22-year highs are slowing purchases.
Because of the industry’s multibillion-dollar predictions, 3D printing stocks can reverse the trend. However, if you want to seek out the best 3D printing stocks, you should look at choices that analysts like, which is what we’ll do here.
3D Systems (DDD)
3D Systems (NYSE:DDD) is transitioning with new products and operational simplicity and is pursuing a $1.8 billion mega-merger with Stratasys to strengthen its position among 3D printing stocks.
South Carolina’s 3D has pursued the merger for some time, but Stratasys will not bite, even after revising the conditions in September.
3D Systems expects cost synergies of $110 million. The combination will lead to predicted revenue of $1.3 billion in 2024 and an EBITDA margin of about 12%.
Innovative products like the NextDent 5100 dental platform will keep investors interested even if the transaction fails. By the second half of 2024, the company anticipates FDA clearance of its multi-material, jetting one-piece dentures.
The MJP 300W 3D printer with VisiJet Wax Jewel Ruby expands 3D-printed jewelry alternatives. It prints quicker and has improved surface quality, making it suitable for flexible, durable jewelry.
Finally, 3D is selling an on-demand manufacturing business for $82 million to industry veteran Ziad Abou and Trilantic North America to focus on industrial and healthcare.
Materialise (MTLS)
Materialise NV (NASDAQ:MTLS) is vital to the medical and industrial industries. Its concentration on software and strong medical presence make it a potential investment for patient investors hoping to profit from 3D printing technology and the worldwide aging population.
With the stock down 33% this year, MTLS is a good contrarian investment, especially with analysts assigning it a $10.75 price target, translating into a roughly 110% upside.
The upside makes a lot of sense, considering Materialise’s first-quarter 2024 results revealed an earnings beat of 1,300% and a revenue surprise of 1.25%. Despite a decrease in adjusted EBIT and EBITDA due to strategic investments, the Materialise Medical section saw a growth of 7.7%, with gross margins growing to 56.5%, meaning MTLS is keeping a good lid on costs.
On a separate note, much like other 3D printing stocks, Materialise is constantly innovating. The latest e-Stage for Metal+ software from Materialise optimizes laser powder bed fusion support structure development using physics-based modeling.
At the same time, Materialise is partnering with Vuzix and leveraging 3D printing to speed up smart eyewear design and manufacture using Materialise’s 3D printing capabilities.
Because of all this, it comes as no surprise that analysts think MTLS will continue to grow; in 2024 and 2025, sales are expected to rise by 4.1% and 14%, respectively. Besides this increase, gross margins will continue to increase if Materialise follows through on its promise to focus on fast-growing industries like aircraft and healthcare.
HP (HPQ)
HP (NYSE:HPQ), unlike the other two 3D printing stocks we’ve explored, is a diversified conglomerate. This means that as it focuses on building up its Multi Jet Fusion technology, investors can rest easy knowing it’s making money from other areas. Hence, analysts rate it highly, and it’s up 19% this year.
HP has released new automation solutions to make 3D production more efficient and cheaper for large quantities. Both the HP Jet Fusion 3D Powder Handling Automation Solution and the HP Jet Fusion 3D Automation Accessory reduce work and downtime between print jobs.
Meanwhile, the e-Stage for Metal+ software uses physics-based models to improve data and build planning for laser powder bed fusion systems, which is meant to make metal additive manufacturing more affordable.
Moreover, multiple companies are using HP’s 3D printing technology; for example, BMW (OTCMKTS:BMWYY) employs HP’s Jet Fusion to cut CO2 and boost power. L’Oréal is developing cosmetics packaging and increasing manufacturing flexibility using HP’s Multi Jet Fusion technology. Meanwhile, Endeavor 3D now utilizes HP Metal Jet to create metal components.
On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
