Two 3D Printing Stocks for Making Profits
April 29, 2022
I’ve been having a lot of fun lately with my 3D printer. I grabbed an Elegoo Mars 3 on sale so I can make miniatures.
But while I’m a total hobbyist, the 3D printing industry is big business. The global 3D printing market is expected to grow from $12.6 billion in 2021 to $34.8 billion by 2026 at a compound annual growth rate (CAGR) of 22.5%.
So how can you get a chunk of that?
Here are two 3D printing stocks we think are worth checking out.
1. Desktop Metal (DM)
If you have a 3D printer at home, you probably use it to make things out of plastic or resin. But when we’re talking about 3D printing on an industrial scale, metal is a commonly used material.
Desktop Metal is a company that manufactures 3D printers, software, and equipment that build detailed, complex components out of metal. It makes a lot of parts for the automobile industry. In fact, BMW and Ford (F) have been early investors in the company.
The World Economic Forum even named Desktop Metal a Technology Pioneer in 2017.
However, since its stock became publicly listed in December 2020 (through a special purpose acquisition company, rather than a traditional initial public offering), its performance has been lousy.
After peaking above $31 per share in early 2021, DM has sunk to around $4.25. And today’s price is even less than half of what the stock first traded for. If you had bought when DM went public, you could be sitting on a loss of more than 56%.
But that could be good news, because we think there’s much more growth to come with Desktop Metal. The Wall Street consensus believes the stock will rise by 125% from current levels in 12 months.
And insiders have been snapping up shares of the company — always a good sign.
2. Materialise NV (MTLS)
Based in Belgium, Materialise is a company that offers 3D printing services. However, one of its fastest-growing businesses is its software as a service (SaaS) division.
Materialise serves a number of different industries, but its main focus is on healthcare, automotive, and aerospace.
The digital healthcare field itself has grown in leaps and bounds since the COVID pandemic first began. Materialise’s strong position in this industry helped the company benefit from medical technology trends.
The company has been growing its market share by making strategic acquisitions. In January, it completed its purchase of Lin3D, a workflow and digital manufacturing software company.
Materialise owns more than 120 industrial 3D printers in 20 countries. Clients, who are mostly manufacturers themselves, pay Materialise to make prototypes for products, as well as helping scale mass production.
In fiscal 2021, Materialise earned $225 million. That’s more than a 20% increase compared to 2020. And net profit came in at $14.3 million, a 281% year-over-year increase.
The company has forecast at least 10% revenue growth for fiscal 2022 — largely due to its recent spending.
However, year to date, MTLS stock is down more than 25%. That gives you a good opportunity to take advantage of this stock at a low price. Wall Street is expecting it to grow by more than 30% in the next 12 months.