Top 5 Stocks to Buy in the 3D Printing Revolution

3D Printing Stocks You Should Never Miss

ARK Invest has $658 million in 3D printing stocks including $654 million in the five stocks I’ll highlight in this video. The theme is a $490 billion market that is just starting to realize its full potential.

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How to Find the Top 3D Printing Stocks to Buy

In this video, I’ll show you that research into the 3D printing revolution, show you how to find the stocks in the theme then reveal my five favorite stocks to buy right now.

Nation, 3D printing seems to finally be becoming a large-scale commercial reality with an addressable market over $490 billion in nearly every industry from semiconductors to aerospace and footwear.

That data is from the Ark Invest Big Ideas report, a 112-page research report from Cathie Wood and the team at Ark Funds on the 15 life-changing trends they’re following.

So over the next few months, I’m going to dig deep into these 15 disruptive trends, show you that research, help you analyze it and then reveal the top stocks to buy in each!

I’ll be putting these videos into a special playlist on the channel called Ark Invest Stocks to Buy. Make sure you join the community so you don’t miss any of those videos because these are going to be the stocks you want to be in over the next decade!

Now to be honest, reading the section on 3D printing felt a little like déjà vu because this isn’t the first time the technology has supposedly been on the cusp of changing our lives. One look at the share price for 3D Systems, ticker DDD, and you see it’s been in hyper growth mode several times over the past three decades.

What We Can Expect of the 3D Printing Stocks Revolution

ARK has been tracking the industry from its infancy, from the $12.5 billion market for prototypes in the 80s through molds and tools produced in the 90s and finally to the end-use parts opportunity, a $490 billion market today.

The technology builds objects layer-by-layer, literally printing each layer of everything from auto parts to shoes, health care equipment and even parts for the space shuttle.

In fact, when demand for industrial and other printed parts declined last year, the industry found new products in the healthcare space, printing face masks, respirators and filters.

It is really amazing what can be printed and it finally seems like the technology is coming into its own and growing beyond that futuristic hope. The applications have evolved for a break-through in end-use parts and produce real revenue for these companies.

In fact, Cathie Wood and the team at ARK Invest feel so strongly about the potential in 3D printing that stocks in the theme are in three of its six funds for a total investment of $658 million. A fund of 3D printing stocks is the second-largest holding in the new ARKX Space Exploration ETF.

To start a list of 3D printing stocks to research, we’ll head on over to Stockcard.io and the platform recently surprised us with a new look that makes navigation super easy. They’re highlighting my favorite section, these featured collections, right up front and I can click on any of these to find all the stocks in some of the biggest trends we’re following.

I still like to take a look at the search too though because if I start typing in the topic, the drop down is going to suggest other groups of stocks. So within 3D then it’s showing me 3D stocks in printed objects, materials and software. It’s just a great way to find stock ideas you might not have thought about otherwise.

We’ll click through the general 3D printing category and that gives me 55 stocks to start my search. I can click through and research ratios in growth potential, operations, performance and valuation, really everything I need to research a stock.

I’ll leave a link to Stockcard in the video description. Don’t forget to click through and follow the 2021 Bow Tie Nation portfolio, up 32% already and beating the market by 25% this year.

As a special bonus, I’ve negotiated an exclusive discount for everyone in the community. Use the promo code bowtienation for an exclusive discount beyond the free trial.

3D Printing Stocks Market Potential Varies by Industry

Now the market potential for 3D printing varies by industry but there are a few standouts. Just three industries; aerospace, automotive and machinery account for a combined $400 billion of that $490 billion total addressable market, so I want to narrow our list focusing on 3D printing stocks with a strong presence in those industries.

First up, $1.8 billion Materialise, ticker MTLS, evolving right along with the 3D printing landscape for over 30 years.

Materialise is one of ARK Invest’s largest single-stock positions with $235 million across two funds plus held in the 3D printing ETF. The company operates across the medical, manufacturing and software segments helping customers manage and optimize their own printing processes.

Like every company in the theme, total revenue took a hit last year, closing 13.3% lower with the biggest drop in the manufacturing segment. Through cost management and cash collections, operating cash flow actually increased though.

Revenue in the fourth quarter was up 11% from the prior quarter on a 26% jump in the manufacturing component so there definitely seems to be a recovery going on.

The company finished 202 with 111 million euros in cash, almost net cash positive against 115 million euros of debt on the balance sheet.

Shares trade for about 9.2-times sales and hopefully can get back to revenue growth this year. It’s traded as high as $87.40 a share over the last year which would be a 154% return from here just back to the highs.

One of the larger companies in our 3D printing stocks list, $3.2 billion 3D Systems Corporation, ticker DDD.

3D provides comprehensive printing and manufacturing solutions including software, digital design and on-demand manufacturing. The company replaced its CEO in May of last year to lead a strategic transformation including refocusing on healthcare and industrials, selling off non-core assets and reducing costs.

3D booked an 11.4% slide in 2020 revenue but also saw a strong recovery in the fourth quarter, especially in the healthcare segment. It was able to shave almost $11 million off costs by Q4 for a 16% margin improvement through the year.

The company is cash neutral with $75 million in cash against $75 million in total debt and has a pretty solid balance sheet. It’s debt to equity is lower than the industry average and short-term assets cover liabilities by two-to-one.

Shares are also a little cheaper at just 5.8-times on a price to sales basis here with the 52-week high at $56.50 a share, 116% above the current price.

From one of the largest to the smallest, a 3d printing penny stock Sigma Labs, ticker SGLB, at just $30 million market cap.

Sigma Labs has developed an in-process quality assurance system for the 3D industry that detects anomalies real-time in the printing process. It’s system works with printers from other major companies like 3D Systems to improve the quality and consistency of printed products.

It’s signed contracts with Lockheed Martin, Michigan State and Airbus and sales actually increased last year though it was from a lower base. The company booked $810,000 in 2020 for 102% revenue growth from the year before.

It’s still not profitable though, posting a $7 million loss in fiscal 2020 so very much a high risk penny stock. The company has $4.5 million in balance sheet cash and no debt but it does regularly issue shares for funding.

On that faster sales growth, the shares are trading for 37-times on a price to sales basis so you’re paying for that future potential growth.

Another 3D printing penny stock here though much larger than the last, $640 million ExOne Company, ticker XONE.

And yes, even though the shares trade for $29 each, this is still a penny stock. Remember penny stocks are those small companies under a billion dollar market cap, so at $640 million here ExOne is just a fifth the size of 3D Systems which itself isn’t a large company anyway.

The company sells printing machines and related services to industrial customers in aerospace, automotive and energy so right in the core of that 3D printing market potential.

Revenue actually increased last year by 11.6% with recurring revenue 47% of the total, and this is what I love about this company, this recurring revenue stream on machine servicing will just keep growing as more machines are sold.

ExOne booked a strong rebound in the fourth quarter with 18 machine sales, its best quarter in two years, and a record $39.4 million order backlog supports future growth. Management is expecting revenue growth as high as 25% this year on the economic recovery.

The company has probably the strongest balance sheet on the list with $49.7 million in cash against just $3.4 million in debt and current assets that cover liabilities by three-times.

Shares are trading for 10.8-times on a price to sales basis so you’re paying for that growth and financial health but this is definitely one to watch.

Protolabs, ticker PRLB, is the largest 3D printing stock on our list at $3.38 billion though its annual sales are a little lower compared to 3D Systems.

Whereas 3D Systems specializes in helping other companies develop and manage their own 3D printing, Protolabs specializes as a source for prototyping and on-demand production.

The company has a strong presence in medical and computer electronics though it’s a little weaker in aerospace and automotive at just 5% of its customer base in each segment.

Where the company shines is in its contract manufacturing model and that ability to set up massive volume for a company’s printed needs. It’s able to benefit from economies of scale to provide volume services at a lower price and well under what it would cost for a manufacturer to print its own products.

Revenue was down slightly last year, falling 5% to $434 million though the company was able to stay profitable, reporting earnings of $1.89 per share…the only 3D printing stock in our list to remain profitable.

Shares trade for 7.8-times sales with a 52-week high of $286 per share, 134% from the current price.

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