Not a sector for the faint of heart, investors seeking to turbo-boost their portfolios may consider 3D printing stocks. To be sure, the underlying industry doesn’t have a sterling record. In the past, 3D printing investing led to sharp losses in part because of breaking parts and unexpected expenses. However, now that the additive manufacturing sector traversed its initial growing pains, it could storm higher.
According to Grand View Research, the global 3D printing market reached a valuation of $16.75 billion last year. Analysts there project that the sector will expand at a compound annual growth rate (CAGR) of 23.3% from 2023 to 2030. By the culmination of the forecasted period, the sector could generate revenue of $88.28 billion. Therefore, it’s vital to keep tabs on 3D printing innovation. Nevertheless, the industry remains extremely volatile, even if it does show promise now. But if you’re ready to roll the dice, these 3D printing stocks just might deliver.
| SSYS | Stratasys | $14.50 |
| VLD | Velo3D | $2.05 |
| SHPW | Shapeways Holdings | $0.29 |
3D Printing Stocks: Stratasys (SSYS)
Arguably one of the most 3D printing stocks that investors can pick up, Israel-based Stratasys (NASDAQ:SSYS) offers a broad range of products and services. Beyond its direct-play 3D printing innovation, Stratasys produces software and materials for polymer additive manufacturing. In addition, it delivers 3D-printed parts on demand. Presently, the company features a market capitalization of just under $998 million. Since the start of the year, SSYS gained over 25% of its equity value.
Financially, those interested in 3D printing investing for the long haul should look into Stratasys. Primarily, the company benefits from a robust balance sheet. Specifically, its cash-to-debt ratio stands at 18.38. In contrast, the sector median stat sits at only 1.28 times. Also, its equity-to-asset ratio is 0.76, ranked better than 81.77% of companies listed in the hardware industry. Also, the market prices SSYS at a trailing book value of 1.04. As a discount to the underlying metric, Stratasys ranks better than 74.18% of the competition. Finally, Wall Street analysts peg SSYS as a consensus strong buy. Their average price target lands at $17.75, implying nearly 19% upside potential.
Velo3D (VLD)
Hailing from sunny California, Velo3D (NYSE:VLD) bills itself as a leading provider of metal 3D printing solutions. Per its website, Velo3D’s advanced, fully integrated metal additive manufacturing solution helps engineers build the complex, mission-critical parts they need without compromising design, quality, or performance. Ranking as one of the small-cap trades, its market value presently sits at just under $400 million. Since the Jan. opener, VLD gained nearly 26%.
On paper, VLD sounds like one of the 3D printing stocks to buy. However, in the past 365 days, shares slipped 50%, just so you know. However, the company does sport a decent balance sheet. Notably, Velo3D’s cash-to-debt ratio pings at 3.51. This stat ranks better than 68.5% of its peers. As well, its equity-to-asset ratio outpaces 63% of sector players. Adding to VLD’s speculative potential as a 3D printing market winner, Velo3D posts a current ratio of 3.75, better than 80.91% of rivals.
Lastly, covering analysts peg VLD as a consensus moderate buy. Their average price target comes out to $3.70, implying over 68% upside potential.
Shapeways (SHPW)
Easily a swing-for-the-fences opportunity among those seeking 3D printing growth, Shapeways (NYSE:SHPW) is horrifically risky. You know when you’re facing fourth-and-30 and there’s only two seconds left on the clock and you’re down a score? Well, SHPW is the Hail Mary pass that everyone knows you’re going to throw. Just look at its sub-$15 million market cap and 48% year-to-date loss.
So, with such ugly stats to lead off, why on earth would anyone think SHPW represents one of the viable 3D printing stocks? Very few people do. That said, Shapeways features decent metrics on its balance sheet. Specifically, its cash-to-debt ratio prints a lofty 16.62. This stat ranks better than 80.64% of sector players. As well, its equity-to-asset ratio lands at a stout 0.85, better than 92.77% of rivals.
However, with long-term revenue trends in negative territory, Shapeways will require belief in miracles. Also unsurprisingly, Shapeways suffers from deeply negative profit margins. Despite the ugly, all analysts that covered SHPW in the past half-year rated it a buy. Of the two analysts within the past month, their average price target stands at $1, implying 262% upside potential.
On the date of publication, Josh Enomoto 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.