DDD 104% rise in one day - These are two of the hottest 3D Printing stocks of 2021

FDGT portfolio consists of continued innovations such as the 3D printing stocks ecosystem, including 3D printing hardware, software, measurement and materials. In this article, I will explain how 3D printing is part of the world’s additive manufacturing innovation. Note, that this is only one sector of the many we focus on. Moreover, I will then analyze and compare two important stocks in this sector.

Summary

  • 3D Systems (DDD) rally up 104% after preliminary Q4 results beat analysts’ expectations from $140 million to $170 million revenue
  • Stratasys (SSYS) is also up 39% after investors’ optimism was restored in the 3D Printing sector.
  • 3D Printing was hit hard during Covid-19 which reduced demand for 3D Printing products and services.
  • 3D Printing meets the requirements of a more innovative manufacturing future, with lower costs, more efficiency and less time to produce.

 

What is 3D Printing?

3D Printing falls under the category of additive manufacturing. It is the process of building three dimensional solid objects from a larger block. The creation of a 3D Printing object is achieved using an additive process. An object is created by laying down successive layers of material until the object is created. This allows new manufacturing methods to replace traditional ones with decreased costs, faster production, and reduced weight.

3D Printing Stocks

Why FDGT believes in 3D Printing?

The continuous innovation and creation of printer capabilities will slowly be adapted, and this can bring new applications of additive manufacturing. Overall, the manufacturing industry is on the edge of pressure to eliminate costs and maximize efficiency. 3D Printing is the top category that is making manufacturing more innovative and closer to next-generation value propositions.

3D Systems Corp

Now let’s focus on 3D Systems Corporation (NYSE: DDD) which is headquartered in South Carolina. The company engineers, designs, and manufactures 3D printers, 3D printing materials, scanners and offers 3D services in general. Yesterday the stock closed 104% higher than the previous day’s close. The stock went from $11.24 to $22.96 in just one day. The reason behind this lies in the strong preliminary Q4 numbers. The company’s expected revenue is approximately $176 million compared to the estimates of $140 million. The operating income is expected to be double and even triple from the $5.6 million earned in Q4 last year. Why this is great? Because analysts had been telling investors to expect less than $140 million in revenues, meaning that the company managed to outperform analysts’ expectations and beat historic proportions.

What’s more, 3D Systems’ good news does not stop there. The company has announced its non-core software business sale of about $65 million in cash proceeds. The 25% of this amount will be enough to cover its senior secured term debt and will no longer need to dilute shares.

Is 3D Systems DDD a good investment?

Since the company is debt-free now, and most importantly free to focus on its two-core 3D printing making businesses including healthcare and industrial, investors can consider it as a healthy investment, with high growth expectations in the future. I believe that this company has managed to shock analysts in a very positive way that will make them reshape their expectations even in the future. Considering that the stock is still very cheap, more investors will feel “comfortable” to buy it and I believe its market capitalization will also increase.

3D Systems CEO Jeffrey Graves concluded his note this morning saying, “With the benefits of our organizational alignment, our technology and application leadership, and our relentless focus on operational execution, we are more optimistic than ever about the exciting future we see ahead in 2021 and beyond.”

Stratasys Ltd

Stratasys Ltd (NASDAQ: SSYS) is an American Israeli company based in Rehovot, Israel. It manufactures 3D printers and 3D production systems for office-based rapid prototype and direct digital manufacturing solutions. Stratasys was along with the gains of yesterday’s market of 39% higher price to $29.24 from $21.08. This rally was due to the blockbuster preliminary results of 3D Systems that make investors attention to turn to 3D Printing stocks. This sector was hit hard by the pandemic and this news brought optimism back to investors.

Most recently, Stratasys has closed a deal with Origin of a $100 million acquisition price. The company expects Origin software additive manufacturing offerings to add to the revenues of about $200 million within five years.

Bottom Line

The 3D Printing sector will form the future and continuous innovation around the world. The preliminary results of 3D Systems was a sign of restoring the faith of the 3D Printing industry. This is a sign that the industry is about to come back stronger as manufacturing activity picks ups. Investors that seek to have innovative stocks in their portfolios should consider the 3D Printing sector. There are plenty of stocks in the sector but the reason for focusing on the above two is due to the latest news and also the personal belief of FDGT’s stocks.

Disclaimer  I/we have no position in any stock mentioned. I wrote this article myself, and it expresses my personal opinions. I am not receiving any compensation for it, other than FDGT Academy. I do not have or had in the past any business relationship with any company that is mentioned in the above article.

Natalia C. - Junior Analyst at FDGT Academy

Natalia C. - Junior Analyst at FDGT Academy

I am a stock analyst/investor with prior experience and knowledge to BSc Accounting and Finance. After completing my degree and exposure to the accounting firms I decided that the direction I should choose is towards the Investment world. I completed my masters in Investment Management where it gave me solid fundamentals to build my career on. I have examined a lot of different aspects of investment, from REITS, derivatives, currencies, bonds, equity and hedge funds. I never stopped learning about the market which is why I can analyze and write articles for FDGT community always personally opinionated. My passion are green energy and electric vehicles stocks as a whole. I also had my share of analyzing the work form home stocks that are coming to take over in the upcoming years.