The 3D printing industry achieved solid growth amid the COVID-19 pandemic because 65% of engineering firms worldwide are using 3D printing increasingly. In addition, owing to its sustainable nature, 3D printing will likely increase in popularity.
With rapid digital transformation, the 3D printing segment has become a dominant force worldwide, owing to its cost-effectiveness and simplified production methods. According to an RFDTV publication, the global 3D printing market is predicted to grow at a 27.3% CAGR by 2023.
Therefore, Wall Street analysts expect popular 3D printing stocks Stratasys Ltd. (SSYS), Desktop Metal, Inc. (DM), Velo3D, Inc. (VLD), and Shapeways Holdings, Inc. (SHPW) to rally by more than 48% in price in the near term. So, we think it could be worth adding these stocks to one’s watchlist.
Stratasys Ltd. (SSYS)
SSYS in Eden Prairie, Minn., provides connected and polymer-based 3D printing solutions. It sells its products through a network of resellers and independent sales agents worldwide. The company aims to deliver competitive advantages at every stage in the product value chain.
On Nov. 4, 2021, Dr. Yoav Zeif, Stratasys’ Chief Executive Officer, stated, “We expect the ongoing introduction of new product initiatives to further accelerate growth, complemented by our now 100% ownership of Xaar 3D and the new SAF technology, along with our recently announced open and enterprise-ready software platform that integrates with Industry 4.0 infrastructure and applications. We will continue to invest across our portfolio to further grow our sales and drive a return to sustained profitability.”
SSYS’ total sales increased 24.3% year-over-year to $159.01 million in the third quarter, ended September 30, 2021. While its gross profit increased 37% year-over-year to $68.19 million, its net loss came in at $18.08 million, compared to $405.07 million in the year-ago period. Also, its loss per share was $0.28, compared to $7.35 in the previous period.
Analysts expect SSYS’ revenue to grow 16.2% to $605.19 million in its fiscal 2021. Its EPS is estimated to grow at 250% to $0.12 in fiscal 2022.
Over the past six months, the stock has gained 7.9% in price to close yesterday’s trading session at $24.66. Furthermore, Wall Street analysts expect the stock to hit $36.60 in the near term, which indicates a potential 48.4% upside.
Desktop Metal, Inc. (DM)
Burlington, Mass.-based DM manufactures and sells additive manufacturing solutions for engineers, designers, and manufacturers in the Americas, Europe, the Middle East, Africa, and Asia-Pacific. It aims to address the unmet challenges of speed, cost, and quality to make additive manufacturing an essential tool for engineers and manufacturers worldwide.
On Nov. 15, 2021, Ric Fulop, Founder, and CEO of DM, said, “Our core metals business was a key driver of this success, which demonstrates the market enthusiasm for our AM 2.0 technology. With the addition of ExOne, and the Production System P-50 progressing toward initial shipments, we are extremely well-positioned as we head into our second year as a public company to deliver on our long-term commitments to shareholders.”
For the third quarter, ended Sept. 30, 2021, DM’s total revenues increased 906.6% year-over-year to $25.44 million. The company’s total assets came in at $971.59 million for the period ended Sept. 30, 2021, compared to $641.91 million for the period ended Dec. 31, 2020. Furthermore, its goodwill came in at $262.34 million, compared to $2.25 million, also for the same period.
DM’s revenue is expected to be $102.58 million in its fiscal 2021, representing a 522.8% year-over-year rise. The company’s EPS is expected to increase 56.1% in fiscal 2021.
The stock closed yesterday’s trading session at $4.60. Wall Street analysts expect the stock to hit $12.50 in the near term, which indicates a potential 171.7% upside.
Velo3D, Inc. (VLD)
VLD produces metal additive three-dimensional printers. The Campbell, Calif.-based company’s printers enable the production of components for space rockets, jet engines, fuel delivery systems, and other high-value metal parts, which it sells or leases to customers for use in their businesses.
On Nov.9, 2021, Benny Buller, CEO of VLD, said, “We remain committed to helping our customers design and build the parts they need—without compromise. With the upcoming release of our Sapphire XC solution, we intend to accelerate the deployment of the next generation technologies our customers are creating.”
VLD’s revenues were $8.71 million for the third quarter, ended Sept. 30, 2021, up 283.2% year-over-year. Its gross profit was $1.47 million, up 202% year-over-year. And its cash and cash equivalents were $296.83 million for the period ended Sept. 30, 2021, versus $15.52 million, for the period ended Dec. 31, 2020.
Analysts expect VLD’s revenue to grow 223.1% year-over-year to $84.68 million in fiscal 2022. Its EPS is estimated to grow at 49% in fiscal 2022.
VLD closed yesterday’s trading session at $6.18. Wall Street analysts expect the stock to hit $15.00 in the near term, which indicates a potential 142.7% upside.
Shapeways Holdings, Inc. (SHPW)
SHPW facilitates the design, manufacture, and sale of 3D printed products in the United States, Europe, and internationally. It is a leader in the large and fast-growing digital manufacturing industry. SHPW is based in Long Island City, N.Y.
On Nov. 11, 2021, SHPW and DM unveiled a landmark partnership to offer manufacturing and engineering teams unprecedented flexibility and seamless access to industry-leading 3D printing services. Greg Kress, CEO of SHPW, said, “As Desktop Metal’s largest manufacturing services partner, we are committed to establishing ourselves as the ‘go-to’ company for businesses around the world seeking fast, efficient, execution in turning digital designs into physical products.”
SHPW’s net income was $2.55 million for the third quarter, ended Sept. 30, 2021, compared to a $450,000 loss in the previous period. Its cash and cash equivalents came in at $90.11 million for the period ended Sept. 30, 2021, compared to $8.56 million for the period ended Dec. 31, 2020. Also, its total assets were $97.93 million, versus $16.74 million for the same period.
For its fiscal year 2022, analysts expect SHPW’s revenue to be $56.65 million, representing a 72.6% year-over-year rise. The stock is currently trading 5.6% above its 52-week low of $2.68, which it hit on Jan. 11, 2022, to close yesterday’s trading session at $2.83. Furthermore, Wall Street analysts expect the stock to hit $11 in the near term, which indicates a potential 288.7% upside.
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SSYS shares were trading at $24.47 per share on Wednesday morning, down $0.19 (-0.77%). Year-to-date, SSYS has declined -0.08%, versus a -0.83% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...
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