Best 3d printing stocks to own
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Since the onset of3D printing stocks have essentially been in freefall, which has the positive effect of bringing their valuations down to much more palatable levels. Consequently, investors who can stomach high volatility could potentially find long-term opportunity from these price dips.
In other words, the longer-term prospects of the industry appear to be promising. Over two years ago, I argued that 3D Systems NYSE: DDD is the best bet for investors who wanted to own a broad-based, diversified 3D printing company.
My reasoning was based on the fact that 3D Systems offers the broadest 3D printing technology portfolio in the industry, which in theory should allow it to cater to a bigger market opportunity than its competitors.
3D Printer Buyer's Guide
For these reasons, I believe investors may be better served with Stratasys NASDAQ: SSYS as the top diversified 3D printing stock for and beyond. Through the first quarter ofStratasys has sold more than3D printers since the respective inceptions of its Stratasys, Objet, and MakerBot brands -- the most of any 3D printing company.
As these 3D printers are put to use, they consume materials, which Stratasys tends to sell at a higher markup than its 3D printing hardware. This razor-and-blade model, driven by its large installed base, effectively sets the company up to generate long-term recurring revenue streams from the sale of consumables.
ysygohajavin.web.fc2.com - News and Research on 3D Printing Stocks
However, to be clear, Stratasys isn't free from its faults. This misstep has raised questions about management's ability to create shareholder value from acquisitions, and has instilled worries that the company has overpaid for other acquisitions. Although ExOne 's NASDAQ: A major source of ExOne's disappointment in and was related to numerous product shipment delays, largely at the request of customers, which dragged on revenues and forced the company to consistently miss earnings expectations.
ExOne also began a transition from targeting metal foundries -- which proved to be reluctant to adopt ExOne's binder jetting 3D printers -- to directly targeting metal foundry customers. While it's currently slow going, the hope is that this transition will eventually expand ExOne's addressable market by a wide margin, as there are more foundry customers than there are metal foundries. To get involved with ExOne, investors will need to have faith in management's long-term vision that its binder jetting technology is uniquely suited for a variety of 3D printing applications, and that its transition from focusing on metal foundries to their customers begins to bear fruit.
PRLB officially became a 3D printing stock when it acquired FineLine Prototyping in Aprila leading 3D printing service bureau based in Raleigh, North Carolina. Consequently, Proto Labs' manufacturing services can now fluidly take a product developer's idea through the majority of the product design process -- from a conceptual 3D-printed model to a larger-scale manufacturing run in the tens of thousands, using real manufacturing processes like CNC machining and injection molding.
Where I think Proto Labs really stands out from the crowd is in the breadth of quick-turn manufacturing services it best 3d printing stocks to own, and its ability to scale by leveraging cutting-edge automation technology. Together, these factors raise the barrier of entry for competitors to replicate Proto Labs' business model in its entirety, because the capital, technology, and expertise required best 3d printing stocks to own intensive.
In terms of disruption, Proto Labs remains better insulated from the threat of technological disruption than its 3D printing peers because it's technology-agnostic. Should a breakthrough 3D printing or manufacturing technology enter the market, Proto Labs can simply strategia forex segnali said technology, integrate it into its existing operations, and offer it to its customers without skipping much of a beat.
Ultimately, this adaptability gives Proto Labs an enduring characteristic. While no one can be certain how the rest of will treat 3D printing stocks, the most important factor to consider when investing in any 3D printing stock is whether or not the underlying business is operating as expected, and continues to hold the potential to deliver on its promise of earnings growth over a long time horizon.
As long as the underlying fundamentals remain intact, enjoy what's sure to be a wild ride. Steve Heller owns shares of 3D Systems, ExOne, and Proto Labs. The Motley Fool recommends and owns shares of 3D Systems, ExOne, Proto Labs, and Stratasys. Try any of our Foolish newsletter services free for 30 days.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Covering GE and 3D printing at the intersection of business, investing, and what it means for the future of manufacturing. Follow me on Twitter to keep up with the ever-changing 3D printing and industrial landscape by clicking the button below. Skip to main content The Motley Fool Fool.
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