3D printing has the potential to disrupt the technology industry in a big way.
A Market Emerges
With industrial 3D printing machines on hand the manufacturing sector could concentrate on producing purely customized goods. On a smaller level, individuals with mid-level or hobby sized machines own run their own businesses to make, design and sell goods. Seen from this light, the potential for 3D printers seems limitless, and the market for these machines is already manifesting in new ways.
Business Week reported that MakerBot (one of the leading consumer 3D printer companies) opened its first retail store at an expensive downtown Manhattan location: 298 Mulberry Street. The retailer is selling a Replicator 2 printer that costs $2,199, and can print 3D objects. According to Business Week, “It’s aimed at professional designers who want an object factory on their desk.”
3D technology is not yet catching on for investment firms or traditional printing companies like HP. The potential for this technology to change how things are made is enormous. MIT is expected to launch a 3-D printer, too. Ping Fu, founder and CEO of Geomagic, thinks that in five years department stores could be using 3-D printers. Imagine: A 3D printer could be used to print out the goods customized for customers, and tweak existing products to produce just the right fit.
Business Section: Investing Ideas
There are a number of players in the 3D printing space. Here are the three that investors should add to their watch-list of 3D companies:
1. 3D Systems Corp. (DDD, Earnings, Analysts, Financials): Engages in the design, development, manufacture, marketing, and servicing of 3D printers and related products, print materials, and services. Market cap at $1.82B, most recent closing price at $32.85. In the company’s most recent quarter, revenue increased 52% over last year to a record $83.6 million on a 20% organic growth. The company has a $12.3 million of backlog, up 28% sequentially. Cube 3D printer orders topped expectations during the quarter. The company forecasts revenue will be between $330 and $360 million, and $1 to $1.25 per share for the full year.
2. Autodesk, Inc. (ADSK, Earnings, Analysts, Financials): Provides design software and service solutions to customers in architecture, engineering, and construction; manufacturing; and digital media and entertainment industries. Market cap at $7.57B, most recent closing price at $33.35. This company makes software for 3-D printing. In its last quarter, the company experienced weakness from Central Europe, India, and Brazil. The company may report better results next quarter: the product refresh and price increase was not reflected in its reported quarter.
3. Stratasys Inc. (SSYS, Earnings, Analysts, Financials): Engages in the development, manufacture, and marketing of three dimensional (3D) printing, rapid prototyping (RP), and direct digital manufacturing (DDM) systems primarily in North America, Europe, and the Asia Pacific. Market cap at $1.16B, most recent closing price at $54.40. This company is a 3D printer manufacturer. The company is merging with Objet, after stockholders approved the deal on September 14.
These companies are the big players in printing but do not yet have 3D printing as a large part of their business:
4. Hewlett-Packard Company (HPQ, Earnings, Analysts, Financials): Offers various products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Market cap at $33.54B, most recent closing price at $17.06. Paying dividends and having a majority of its business in personal computing, traditional printing, and enterprise hardware, HP is not yet a major player in 3D-printing.
5. Lexmark International Inc. (LXK, Earnings, Analysts, Financials): Develops, manufactures, and supplies printing and imaging solutions for offices. Market cap at $1.56B, most recent closing price at $22.25. Lexmark is not a player in the 3D printing space, but should be looked at. The company is exiting its inkjet printing and is buying back shares
6. Xerox Corp. (XRX, Earnings, Analysts, Financials): Engages in the development, manufacture, marketing, service, and finance of document equipment, software, solutions, and services worldwide. Market cap at $9.59B, most recent closing price at $7.34.
To interact and discuss these picks with users, attach your watch list or portfolio to your friends on Kapitall. Message the author. He is ranked sixth (by points) on the all-time leaderboard. The leaderboard is located on your score icon -> Leaderboard. Members on Kapitall earn free points, and even more points with every Kapitall Generation trade. These points may be redeemed for goods at the Kapitall store.
Analyze These Ideas: Getting Started
- Read descriptions for all companies mentioned
- Access a performance overview for all stocks in the list
- Compare analyst ratings for the companies mentioned
- Compare analyst ratings to annual returns for stocks mentioned
- Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)
Dig Deeper: Access Company Snapshots, Charts, Filings
- 3D Systems Corp. (DDD, Chart, Download SEC Filings)
- Autodesk, Inc. (ADSK, Chart, Download SEC Filings)
- Stratasys Inc. (SSYS, Chart, Download SEC Filings)
- Hewlett-Packard Company (HPQ, Chart, Download SEC Filings)
- Lexmark International Inc. (LXK, Chart, Download SEC Filings)
- Xerox Corp. (XRX, Chart, Download SEC Filings)
New to Kapitall?
1. New to the site? Click here to register for a free account, and gain access to more tools and data
2. Looking for more investing ideas like this? Click here to sign up for your free copy of Kapitall Weekly
3. Follow us on SeekingAlpha, Motley Fool, Nasdaq and Twitter