Despite Wall Street’s current lofty levels, seasoned investors have not stopped looking for companies that have the potential to develop world-changing technologies.
A booming topic in the innovation space is 3D printing, also known as additive manufacturing. It consists of three main components: the hardware, the software, and the materials used to perform the printing.
3D printing dates back more than half a century, but only in the last decade has it become mainstream, in part thanks to falling costs, especially of hardware. Today, the technology is widely used in many industries, including aerospace, automotive, education, construction, healthcare, manufacturing, and robotics, among others.
Recent research points out that:
“The global 3D printing market was valued at $13.84 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 20.8% from 2022 to 2030.”
Therefore, Wall Street paid close attention to 3D printing stocks. For example, in July 2016, the S&P Kensho 3D Printing Index Was launched. At the beginning of 2021, the index reached an all-time high.
But since then it’s a different story, as the ETF has lost almost a third of its value in the past 12 months. Yet this decline in 3D printing stocks also means better opportunities for buy-and-hold investors in this burgeoning field.
Examples of 3D printing stocks
InvestingPro provides access to 3D printing stocks that can appeal to long-term investors. For example, among large-cap (cap) stocks, we see industrial software names Autodesk (NASDAQ:) and CTP (NASDAQ:); simulation software company Ansys (NASDAQ:); 3D systems (NYSE:); and maker of digital contracts Proto labs (NYSE:).
The fastest growing 3D printing companies are specialty medical device manufacturers CompliantMIS (NASDAQ:); 3D printing company Stratasys (NASDAQ:); Autodesk; and CTP.
Meanwhile, those looking for undervalued 3D printing stocks may want to research Proto labs; CTP; early-stage biotech stocks Organovo (NASDAQ:), specializing in 3D bioprinting; Ansys; Autodesk; FARO Technologies (NASDAQ:), which focuses on 3D imaging and measurement equipment; Stratasys and 3D systems. These stocks also have bullish analyst targets, which means they could see higher prices in the coming months.
Finally, among 3D printing stocks, low price-to-pound (P/B) ratio shares may also warrant readers’ attention. For example, Organovo and CompliantMIS have P/B ratios less than 1x. SSYS, PRLB, and JDD stocks also have relatively low P/B values.
Choosing appropriate stocks for long-term portfolios requires research, which can be difficult for most retail investors. It should also be noted that the stock lists provided on the Investing Pro website may not always fully meet the objectives of all readers. In this case, they can also consider looking for an exchange-traded fund (ETF) that holds a basket of stocks in the 3D ecosystem.
The 3D printing ETF
- Current price: $22.80
- 52 week range: $20.92 – $40.62
- Spending rate: 0.66% per year
Our fund today, the 3D printing ETFs (NYSE:), is a thematic ETF providing access to a wide range of innovative companies in the field of 3D printing. These names focus on hardware, computer-aided design (CAD), scanning, measurement, printing materials, and 3D printing.
PRNT, which tracks the Total 3D Printing Index, currently has 54 entries. The fund was first listed in July 2016 and is part of the ARK family of ETFs managed by Cathie Wood.
Nearly three-quarters of stocks come from North America, followed by Western Europe (22.72%), Africa/Middle East (3.83%) and Asia-Pacific (0.10%).
Looking at sectors, we see Information Technology (55.9%), Industrials (23.5%), Healthcare (10.6%) and Consumer Discretionary (4.4%). ), among others. The top 10 stocks in the portfolio represent more than a third of the $240.41 million in net assets.
Among the top companies on the list are CTPpositioning technology name Trimble (NASDAQ:); Autodesk; Microsoft (NASDAQ:); resume (NYSE:), which offers computer, imaging and printing products; Based in France Dassault Systems (OTC:), known for its 3D design software; Ansys; Bike3D (NYSE:), which makes metal 3D printers; Metal desk (NYSE:), which provides additive manufacturing technologies; and engineering software and services company Altair Engineering (NASDAQ:).
In February 2021, PRNT broke above $50 to reach an all-time high. However, over the past 52 weeks, it has decreased by around 38%. And since the start of the year, the ETF has lost a third of its value.
By comparison, the is down about 27% since the start of the year. Potential investors who believe that selling may dry up might view the lower PRNT as an opportunity to buy this emerging theme.