Technology has become one of the main drivers of pushing consumers' lives and industries forward. These advancements have given us tools to drive various sectors to build innovative projects that affect our daily lives and disrupt certain established industries. Things like ride-hailing apps, electric cars, and artificial intelligence applications like large language models and machine learning have come to change the norm, and it looks like they’re here to say. Another notable technology, 3D printing, has gained a foothold in several industries, and ongoing innovations continually push it to more markets.
What is 3D printing?
3D printing, sometimes called additive manufacturing, is the process of creating a three-dimensional object from a reference. The reference can either be a CAD model or a digital 3D model. It can be done using a variety of processes wherein materials are deposited and then joined or solidified and then added layer by layer with computer-controlled precision.
Isn’t it just a niche?
3D printing has continued to expand as several industries adopt it for manufacturing and design. In fact, the global 3D printing market is expected to reach $22.40 billion just this year alone. By 2030 it is expected to grow up to $105.99 billion, based on industry experts' estimates.
Now let’s look at some of the buy-rated 3D printing companies in the market.
Mark Forged Holdings Corporation (MKFG)
Markforged Holding Corporation is a company that offers a unified platform that helps design hardware, software, and materials with a click of a button. MKFG’s platform, Digital Forge, combines three-dimensional (3D) printers with its cloud-based learning software, allowing manufacturers to create more resilient and flexible supply chains using metal and composite materials. This additive manufacturing platform powers engineers, manufacturing professionals, and designers globally. MKFG caters to several industries, like:
- Automotive
- Aerospace
- Energy
- Medical
- Research
- Electronics manufacturing
- Consumer packaged goods
With a portfolio of 3D printers, MKFG’s products can produce quality parts even with limited space using its desktop printers. Its industrial composite printers can build materials using predictable functionality through sensors, software, materials, and various print modes. Lastly, its metal printers allow its customers to fabricate strong and complex metal parts that can be applied to various targeted uses.
Analyst Ratings
While the stock trades around its target prices, MKFG is rated a “Strong Buy” based on 1 Strong Buy recommendation from an analyst.
Stratasys Ltd. (SSYS)
Stratasys Ltd. is an industrial printing manufacturer that aims to provide the entire manufacturing value chain with polymer-based 3D printing solutions. SSYS offers various services from 3D printing platforms, Global Traffic Management Infrastructure (GTM), software, materials, and technology partner ecosystem. Stratasys Ltd. also owns an estimated 1,700 additive technology patents that can be used to create prototypes, models, manufacturing tools, and production parts for industries like:
- Aerospace
- Automotive
- Transportation
- Healthcare
- Consumer products
- Dental
- Medical
- Education
Stratasys operates mainly in the United States but has locations in other countries like Israel, Germany, Hong Kong, and Japan. They offer expertise in various 3D ecosystems of solutions that include 3D printers, software, expert services, materials, and on-demand parts production.
Analyst Ratings
SSYS is rated a “Moderate Buy” based on 1 Strong Buy, 1 Moderate Buy, and 1 Hold recommendation from analysts. The mean target is $20.00, and the high target is $21.00, with an upside potential of 8.8%.
Velo3d, Inc. (VLD)
Velo3D, Inc. is a technology company focused on metal three-dimensional printing. VLD uses laser powder bed fusion (L-PBF) technology to produce complex and mission-critical parts that current additive manufacturing (AM) solutions cannot create without additional assembly or redesign. VLD's Sapphire family of 3D Printers systems allows its customers to design and produce metal parts with complex internal features that can be applied to industries like Aviation, Defense, Space, Automotive, Energy, and other industrial markets.
Velo3D also offers end-to-end solutions powered by its Intelligent Fusion manufacturing process. This includes their Assure quality control system, Sapphire family of printers, and flow print preparation software.
Analyst Ratings
VLD is rated a “Strong Buy” based on analysts' 1 Strong Buy and 1 Moderate Buy recommendation. The mean and high target is $4.00, representing a cool 100% upside potential.
Final Thoughts
The 3D printing market is full of potential despite being in its early stages of growth. With the continuous drive for technological advancements, cost-effectiveness, sustainability, and diverse applications, investing early in this industry can offer speculators a profitable investment. Having an early foothold in a transformative technological revolution expected to grow substantially can provide financial gains. The only question is, which company will lead the revolution?
On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
