Not too long ago, analysts and early adopters touted the technology of 3D printing as the future of manufacturing. Then came market corrections and concerns surrounding the feasibility of long-term pure-play 3D printing companies. Further damaging the industry, the advent of 3D-printed guns and other contraband items began to raise concerns regarding the ethicality of commercial 3D printers. This resulted in 3D printing stocks taking a hit after several analysts realized that the technology was still maturing.
Today, major players in the early days of 3D printing are not as far along as many analysts had hoped. However, companies that strategically position themselves within the 3-D printing industry as supporters and hybrid adopters of the technology have been able to leverage it into growth. As such, these companies have made themselves indispensable to critical industries through the customization and savvy application of 3D manufacturing. From the space industry to 3D-printed organs and beyond, here are three 3D printing stocks to invest in for generous long-term returns.
Xometry (XMTR)
A wide base of customers has provided Xometry (NASDAQ:XMTR) with respectable growth over the last 12 months A wide base of customers has provided XMTR with respectable growth over the last 12 months. Chief among its accolades the company has been able to increase its active buyers to 55,458 in 2023 up from 28,130 in 2021. This near doubling in customers over two years has reflected a revenue increase of $245 million in the same time. These record results for the company are thanks to careful management and the importance of significant customer diversification.
Moreover, to increase its ability to expedite order management, while reducing costs, the company has introduced a new AI-powered marketplace to provide quotes to potential customers for custom 3D printed designs. This clever implementation of AI technology essentially removes one of the largest roadblocks to a 3D printing company, like XMTR, because it cuts down on the lead time for a quote, which increases the companies chances of winning a customer contract.
BICO Group (CLLKF)
When analysts discuss 3D printing, the conversation tends to revolve around plastic filaments or the occasional liquid metal. However, BICO Group (OTCMKTS:CLLKF) has taken the technology in a different direction, one which has the potential to revolutionize the sourcing of transplant organs. Known as bioprinting. This relatively new industry has taken the 3D printing technology and applied it to one of the most critical issues in modern healthcare today.
As a result, the potential upside has seen both retail and institutional investors alike flock to bioprinting companies for lucrative gains. For the company 2023, represented a year of financial stabilization and consistency with most performance metrics close to those of 2022. However, BICO Group has positioned itself in a niche market with little competition and close to an 18.5% compound annual growth rate for the next seven years.
Though the company is still operating at a loss each quarter the fundamentals get stronger. As such BICO Group, could be one of the 3D printing stocks with the most potential heading into the next round of earnings reports.
PTC (PTC)
Though not a direct manufacturer of 3D printers or filaments, PTC (NASDAQ:PTC) currently commands a sizable market share in the 3D modeling space. As the owner of the Creo design software, the company licenses a critical step in the 3D printing process. Moreover, the company uses a diverse product portfolio to enhance its market position across several software types beyond 3D printing.
This has resulted in a 24% increase year-over-year for the company’s annual recurring revenue for Q1 of 2024. One detail investors should mind about PTC is its gross debt increase of 67% to $2.26 billion over the last 12 months. While this tends to be indicative of companies focused on growth, it is slightly concerning for a company whose main business model is licensing software. This PTC represents an opportunity for investors interested in 3D printing stocks to diversify their investment across several product categories.
On the date of publication, Viktor Zarev 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.